We were referred to a borrower from one of our preferred Real Estate Brokers. The client was in a 1031 exchange and transitioning from residential to commercial and she was having a difficult time finding her replacement upleg.
It can be challenging when working with a client who is buying their first Apartment Building and it compounds when you also have residential mortgage brokers who are providing bad info to the client. The property that was eventually identified was nice in a great market area, but because one unit was nonconforming we could not use the rent and this hurt a bit because the property was already exchanging at a very low cap rate, so the down payment required was over 50%.
Our borrower had to apply under a low doc program and ALB identified Freddie MAC SBL program as the best program of choice. We had to get an exception for the borrower being her first Solo on an apartment building, but we did and we obtained a smoking good rate and terms. It's an arduous process these agency loans but when you look at the big picture it was the best choice for this transaction.