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Supplemental Financing Options

TMG Arranges a Supplemental Loan for 32-unit Apartment in Utah

Tags: supplimental loans, 2nd mortgage, apartment financing
Tuesday, Aug 27, 2019
by Angela Kesselman

Summary:  The Madison Group (TMG), a leading national lending source of multifamily financing, arranged a supplemental loan in the amount of $1,171,000. The 32-unit town home project was purchased with agency financing a year and a half ago at a low LTV. 

TMG assisted the borrowers with the original purchase of the property with a FNMA loan.  The clients purchased the property with this loan type with the intent of increasing their proceeds once they were able to increase the operating income.  TMG locked in a low rate 2nd mortgage which is co-terminus with the 1st mortgage, and the client was able to recapture a good portion of their original cash infused into the transaction.

Location:  Utah

Property:  32-unit apartment

Loan Amount: $ 1,171,000 2nd mortgage

Interest Rate:  4.49%

Term:   13.5 Years

Amortization:   30 Years