MortgageReal Estate

Citadel Servicing rolls out financing product for small multifamily properties

As institutional investors dominate conventional investments, others move to small projects

Citing growing market demand, Citadel Servicing Corp. has created a new non-prime/non-QM funding product for multifamily and mixed-use properties up to 35 units that it's calling the "Outside Dodd-Frank Plus Program."

The Outside Dodd-Frank Plus Program is an extension of Citadel’s Outside Dodd-Frank Program and offers loans for properties up to 35 units. Loan amounts are up to $3 million with a max loan-to-value ratio of 75%.

“We see a lot of potential business that will come our way with this offering,” Citadel Servicing Senior Vice President of Loan Origination and Marketing William Fisher said in a statement.

“We are continuing to stay at the forefront of the Non-Prime/Non-QM space because we are reading the market and listening to what our customers are saying. This is a great loan product or residential property with commercial influence,” Fisher added.

Up until recently, demand for funds in the multifamily space have been increasing. Thanks to heavy competition in the multifamily space, it is becoming difficult for smaller operators to compete in the space.

In response to that competition, interest from non-institutional investors has migrated to smaller projects (i.e. 35-unit properties) that traditional banks have little interest in financing.

Citadel’s move to offer a product that enables investment in smaller projects with a higher than normal LTV appears to be part of this growing market division.

“Basically, if it has a bed or living residence attached to it, we can fund it,” Citadel Founder and CEO Daniel Perl said in a statement.

Most Popular Articles

Here’s how to use Fleq to buy a home without a mortgage

You asked, and we answered. A Pittsburgh startup company is introducing a new way to look at homeownership, and it creating quite a stir. But after our first Q&A with the company, readers still had more questions. Here are more answers to exactly how a no-mortgage home buying process would look.

Jan 20, 2020 By

Latest Articles

NYC real estate data firm Actovia salvages competitor CrediFi from the scrap heap

Just a few weeks ago, it looked like CrediFi, a commercial real estate data and analytics provider that had raised nearly $30 million in funding over the last five years, was mere days from shutting down. Now, it looks like the company has been saved from the chopping block, at least in some form, by one of its competitors no less.

Jan 22, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please