[Salt Lake City, 07/24/2017] – Bonneville Multifamily Capital provides funding for multifamily properties. Their Substantial Rehabilitation (Sub-Rehab) loan programs allow developers and multifamily property owners to increase their property value and rental income.

Adding Value to Multifamily Real Estate

Investing in upgrades increases the value of a property. Enhancing exterior facades, replacing mechanical systems, and remodeling dated units can improve rental rates and, in turn, generate interest and increase rental income. Bonneville Multifamily Capital assists borrowers by helping them get the funding to increase their property value without having to tapinto their capital. Multifamily property owners who require major updating and repairs can, therefore, turn to the company’s Sub-Rehab loan.

The loan provides capital for the acquisition and improvement of multifamily real estate. It is ideal for developers targeting properties with upside potential while minimizing cash outlay. Owners of neglected properties are also prime candidates of the Sub-Rehab loan.

Sub-Rehab Loan Programs

Bonneville Multifamily Capital offers the following Sub-Rehab loans:
• FHA 221 (d)(4) – As a loan guaranteed by The Department of Housing and Development (HUD), the FHA 221 (d)(4) loan is a low-cost, non-recourse, fixed-rate loan. The program allows for long-term mortgages of up to 40 years. The company assists in providing a rapid application to the program, ensuring high-leverage options and non-recourse liability.
• Freddie Mac/Fannie Mae Value-Added Loan – The value-added loan offers short-term, cost-effective financing for property upgrades. As an interest-only and uncapped floating-rate loan, it offers competitive pricing for rehabilitation work.

The building components that cover the improvement and repairs include roof, wall, and floor structure, plumbing, heating, air conditioning, and electrical systems, as well as a property’s foundation. When taking out a Sub-Rehab loan, it often requires replacement of at least 50% of the system.

About Bonneville Multifamily Capital

Bonneville Multifamily Capital is part of Bonneville Real Estate Capital, a full-service banking capital for 14 years. Bonneville Multifamily Capital provides various multifamily loan options, including new construction loans, USDA 538, bridge loans, senior housing loans, and more.

For interested clients, visit https://bmfcap.com