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Apartment Refinancing | Get a Better Apartment Loan

Apartment refinancing is a great tool for reducing your loan payments and getting a better interest rate. Many property owners have no idea that you can refinance a rental property, and those that do often find it difficult to find an apartment refinancing lender.

Problems You May Face

As with all loans, there are two issues at play. The first is risk. Rental costs and apartment value can fluctuate, and much like applying to your first loan, apartment refinancing is also related directly to the risk associated with the loan. If your property is still high risk, an apartment refinancing company may be less likely to issue you a new loan or a more competitive rate.

The second is necessity. Most lenders know how great a risk apartment financing can be already, and if the new loan doesn’t provide more value for the lender, they may not find transferring a loan worthwhile.

What You Can Do To Improve Your Apartment Refinancing Odds

If you’re looking to refinance your apartment loan, it’s important that you first make sure that you are going to look like a smart risk in the eyes of potential lenders. Often that entails:

  • Renting the Apartments

Wait to refinance if you still have empty rooms. Lenders are much more likely to provide a positive response if every room is filled, especially if many of those renters are still on an active lease. Many borrowers try to refinance because they’re going through tough financial times, usually because residencies are empty. But unfortunately you are much more likely to find a bank that will give you a good rate if you can show them that your investment is already paying off.

  • Make Sure Legal Paperwork is in Place

It’s also very important that you show lenders you’re running your property like a business. You need to have solid lease paperwork in place, excellent accounting and tax payments, legal documents to protect you from issues ranging from bed bugs to fire, and more. These are illustrate to lenders that you have reduced your financial risk on the apartment, which indicates their risk is reduced as well.

  • Watch Your Own Finance History

Lenders do look at how you manage money. A renter with a spotless record but a terrible credit score is still going to be someone that is more of a risk for apartment refinancing than someone with a very small blip in their rental history but otherwise perfect credit. Apartment refinancing takes everything into consideration, and that means watching what you do with your own money to ensure that you’re seen as a good investment by lenders.

Refinancing and Support

Apartment refinancing will always be difficult, and even if you have everything on hand, it can be hard to find a lender. Sign up with CRE Lender today to get more information on how to refinance your apartment/multi family home, and let us find you a lender with an excellent refinancing rate that is ready to take on your loan.

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