Alternative Capital Steps Up to Fill the Gaps - Debt, Equity, Mezzanine Financing - Multifamily Executive Magazine

Fannie Mae, Freddie Mac, and the Federal Housing Administration held this industry together in the darkest days of the Great Recession. But as the economy slowly recovers, the private sector is growing more eager to pick up the slack.

Banks have jumped back aggressively, and an increasing number of them are using the balance sheet to go out longer than five years, which is traditionally the bank's sweet spot. A bank perm loan may be a little more expensive and offer a bit less leverage than an agency deal. But banks often feature more underwriting flexibility, such as more flexible prepayment structures.

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