Commercial Real Estate Financing Programs


 – Up to 90% LTV
– Rates starting at 4.75%
– 20-25 year amortization
– 25 year fixed rate options available
– Purchase & Refinances (cash out ok)
– Flexible Underwriting


– Loans Up to $5,000,000
– Rates Starting at 4.25%
– Programs: 3, 5, 7, 10, 15 year fixed rates
– 650+ FICO
– 75% Max LTV
– 20-25 yr Amortization


Loans Up to $10,000,000
– Owner Occupied and Investor
– Rates Starting at 5.25%
– Programs: Adjustable, 5 yr fix, 10 yr fix
– 600+ FICO
– 90% Max LTV
– 25-30 Amortization








No Money Down For Chicago Commercial Real Estate Investors

No Money Down

This means no down payment to purchase investment property. Many investors are longing for the old days that hard money and bridge lenders would lend based on the equity of the property only. Those where the days of uncontrolled appreciation and values continued to rise beyond any logical means. Those were the days that novice investors thought that there was no way to lose money investing in property. The reality for many years there was no investment  with a greater return than real estate.

The Bubble Burst

Then the out of control rising of property values hit a ceiling, the bubble burst and instead of appreciating residential and commercial property began to lose value. As banks and conforming lenders lost money during this “mortgage crisis” so did private lenders and hard money funds. The response from the banks and conforming lenders were to tighten there lending requirements. Private and bridge lenders did the same. The number one thing was to require buyers to have skin in the game. That is investors were required to actually invest money in their projects.

Exit Strategy

More important than asking buyers to participate in their investment, private lenders who provide short term funds to R.E.I.s (real estate investors) became more strict in ensuring their clients would have a solid exit strategy. To ensure this they began to make sure the R.E.I.s would qualify for take out financing. As conforming lenders reduced their loan to values, increased the credit score requirements and generally tightened their underwriting requirements, hard money and bridge lenders had to do the same. The R.E.I.s are tasked to have an exit strategy that is above reproach. To be a successful investor you must have a fool proof plan to pay off your short term lender and move into permanent financing.

Chicago Commercial Real Estate Investors

Throughout the country many hard money lenders pulled out of the market amidst mounting losses due to property values going down and R.E.I.s unable to sell or refinance the properties. As the market stabilizes and private lenders understand the new realities of financing today they have come back into the market. I have found legitimate bridge lenders that would lend up to 100% of the cost to purchase and rehab commercial apartment buildings in the Chicago Area.

Purchase Rehab Private Financing Guidelines

Though the guidelines are different for every private funding source these guidelines are representative of many lenders have polled in Chicago.

  • Credit Score: 650 to 680 or higher
  • Assets: 3 to 6 months of mortgage payments or more
  • LTV: from 50% ARV to 75% of ARV depending on the property

If you qualify for these guidelines you may be able to purchase commercial apartment buildings with little or no money down.


Invest in Multifamily Housing Now

Residential Foreclosures are Up

When an investor looks at opportunity there are always direct and indirect reasons to invest in real estate. Because residential foreclosures and short sales are high now many investors are flocking to try to purchase residential properties. Many of them are looking to rehab and flip them for immediate return. Other more capitalized and savvy investors are looking to buy and hold them for the market to come back. Both of these strategies can work but they have inherent pitfalls built in. Both directly and indirectly now is the time for savvy real estate investors to invest in multifamily housing.

  1. The residential market is bad, therefore financing is much tougher for investors.
  2. The residential market is bad, therefore financing is much tougher for the home buyer.
  3. The residential market is bad, therefore the market is flooded with distressed properties being sold below market.
  4. The residential market is bad!

Rental Properties are in Great Demand

Where are these homeowners moving to who lose their homes. The vast majority of them are moving into apartments. In general, they will not qualify for home financing again for at least four years. Many will never buy homes again. The delinquency rate at Fannie Mae (by far the nations largest owner of single family home mortgages) is over 5% and expected to continue if not get worse over the next 2 years, where will these people move to?  During the housing boom new starts of multifamily units were well below their normal level. So now there is a shortage of apartment buildings looming as the housing crises continues. This means high occupancy and increasing rents for the savvy investor. This is a great time to invest in multifamily housing now.

Apartment Financing is Available

Though the guidelines are tougher financing for multifamily residential rental units is available and rates are very low. Whether an investor is looking to purchase, build, renovate or refinance there are many options available today. With fixed rates in the 5% to 6% range for larger buildings and slightly higher for smaller properties now is the time for investors to seriously consider commercial real estate for their investment portfolio, especially if they are thinking long term.

Return on Investment

The most important reason investors invest is for a return on their investment. Investors all have varying degree of risk and no investment is without risk. But, the return on commercial real estate can be measure in two ways; income and appreciation.

  • Income, rental units are in high demand and that means high occupancy and higher rents.
  • Appreciation, values have gone down on apartment buildings like residential real estate during the housing crises yet rents are not significantly down and occupancy is up. Both occupancy and rental rates will increase. The more money a property makes the more it is worth.
  • Values are low, income is stable and growing, appreciation is very likely as the shortage of commercial apartment buildings continues.

Invest now in multifamily housing.

FBC Funding can help you with conventional and creative financing options to take advantage of this market. Contact us at for more information.