The Covid-19 pandemic has disrupted the normal economic activities that many companies thrive upon. Several industries, such as restaurants, bars, retail stores, travel-related businesses and other types of entities have realized higher losses than expected. Property owners who need to borrow money can apply for a cash-out apartment building loan.

Can an Apartment Building Owner Get a Cash-Out Refinance Loan During Covid-19? 

A real estate investor may need funding for a variety of reasons. Perhaps, a loan is desired to make property repairs or to make upgrades to improve the appearance of an apartment building.

Property enhancements that provide significant upgrades and more amenities for tenants could also raise the value of the apartment building. 

Money that may be needed to pay for property management, landscaping, a new cooling system or kitchen appliance upgrades is available for commercial properties with enough equity.

During the Covid-19 pandemic, an investor who did not maintain his job might be able to borrow money against the equity, as an apartment building owner. 

An investor who received a loan denial from a bank or from another mortgage lender may be able to qualify for a stated income cash-out refinance loan.

Imagine, getting approved for an apartment building loan through a non-bank lender that does not require W-2’s, personal tax returns, business tax returns or a 4506. 

Direct Apartment Lenders provides cash-out refinance loans that are based on the stability and the performance of the asset versus the income of the borrower.

Perform a Free Credit Check 

Our commercial mortgage loans are not based on a borrower’s finances, however, a credit check is performed to determine whether the applicant’s mortgage payment history is satisfactory and if there has been a bankruptcy within the past two years.

Typically, a median credit score of 600 points or greater is desired for our cash-out apartment building refinance loans.

By performing a credit check prior to applying for a commercial mortgage loan, a borrower can visit the Annual Credit Report website to perform a free credit check online.

Personal credit checks will not trigger an inquiry that reduces a borrower’s credit score.

Although, if errors might be causing a borrower’s credit score to linger below 600 points, a dispute may be filed with the credit bureau to resolve the delinquency.

Additionally, a higher credit score and a stronger credit profile may enable a borrower to obtain a better mortgage interest rate.

Make a Folder for Important Loan Documents

Borrowers who are motivated to complete the application and the underwriting process with fewer delays are encouraged to maintain a folder for the refinance transaction.

An initial mortgage loan application may be completed online, however, additional items will be needed to obtain a loan approval.

Place several documents within the folder, such as rent rolls for the subject property, copies of lease agreements, copy of prior title documents, copy of most recent appraisal, copy of mortgage note, copy of property insurance policy, information about other properties owned and copies of recent statements for liquid assets that are listed on the loan application. 

Having these documents ready could save time and enable the process to flow along much faster.

At no time during the process will we ask a borrower to provide recent pay stubs, W-2’s, personal tax returns or business tax returns.  

Submit an Application Online for a Cash-Out Apartment Building Loan

Whether at home or at work, a borrower can conveniently apply online for a cash-out apartment building loan. Our in-house loan officers, processors and underwriters are dedicated to professionalism and toward helping qualified borrowers receive money from the equity within an apartment building as quickly as possible.

Investors can request a cash-out mortgage refinance loan for any purpose. As long as the property has a documented collection of rent that satisfies our debt-service coverage ratio, meets our loan-to-value requirements and is in decent condition, an opportunity for financing may exist.

Our lending experts are ready to discuss any questions or concerns about qualifing for an apartment building loan.

Considerations

The Covid-19 pandemic severely hurt many industries within the United States and around the world.

Many small and mid-sized businesses did not survive. Some firms are still limping along.

An investor who seeks to obtain a loan from a local bank, credit union or other financial institutions may have difficulty without a pay stub, tax returns or a 4506.

Fortunately, an opportunity to obtain funding might be possible for an investor who has equity within a commercial property.

With a performing asset, such as an apartment building or an apartment complex, an investor could borrow money for property improvements or to have cash on hand for unforeseen situations.

As a nationwide lender for apartment buildings, commercial properties and small balance loans, Direct Apartment Lenders provides reliable support for entrepreneurs and for investors.

Contact us today to discuss financing for a commercial property.