Multifamily Property Loans
Multifamily Loans for Apartment Buildings
Multifamily Property Loans & Lending Program Details
Multifamily property loans finance apartment buildings; our programs cover multifamily properties with a minimum of five units. We offer nationwide solutions for your multifamily finance needs, including Fannie Mae, Freddie Mac, FHA and Bridge loans, among many other flexible options.
Why work with us?
- We can offer Industry-Leading terms
- Multiple Loan Products including Fannie Mae, Freddie Mac, FHA
- Take advantage of our diverse Nationwide Lender Network
- We assist & guide you through the whole cycle of the loan process
The reliability and consistency of the agency multifamily financing programs allow our clients to achieve their financing goals no matter the market climate. The combination of our diverse lender network and in-house expertise offers us the ability to customize financial terms under the Fannie Mae, Freddie Mac, FHA platforms and offer the most flexibility to the borrowers we work with.
Fannie Mae, Freddie Mac, FHA loan programs and offerings
- Multifamily Affordable Housing Financing
- Cooperative Apartment Financing
- Green Financing
- LIHTC Project Financing
- Manufactured Housing Communities Loans
- Military Housing Financing
- Seniors Housing Financing
Multifamily Loan Requirements:
- Loan Amount: $1,000,000 minimum
- Loan Term: Up to 30 years
- Amortization: Up to 30 years
- Minimum DSC: 1.15
- Maximum LTV: Up to 90%
- Fixed Rate: Yes
- Adjustable Rate: Available. Convertible and non-convertible options available
- Eligible Properties: Multifamily, minimum five units
- Eligible Borrower: Single Asset Entity
- Occupancy Requirement: 85% physical occupancy, 70% economic occupancy
- Tax & Insurance Escrows: Monthly deposits required
- Replacement Reserves: Underwritten at a minimum $250 per unit per annum
- Recourse: Non-recourse with standard exceptions for fraud and misrepresentation can be waived for 100% restricted properties
- Commercial Space: Maximum 35% of net rentable area and maximum 20% of effective gross income
- Required Reports: Appraisal, Property Condition Assessment, Phase I Environmental
- Prepayment: Yield Maintenance and other declining prepayment options are available
- Assumable: Subject to approval and 1% fee
- Supplemental Loans: Eligible for secondary financing after 12 months
How Multifamily Loans Are Underwritten
Multifamily, or apartment, properties have historically been one of the most stable property types, despite typical one-year leases and higher tenant turnover than other property types.
The debt-service coverage ratio (DSCR) is the property’s cash flow or net operating income divided by its debt service: a building with $115,000 of net operating income and $100,000 of annual loan payments has a DSCR of 1.15, the minimum on our multifamily program. The program also requires 85% physical and 70% economic occupancy, a single asset entity borrower and an appraisal, property condition assessment and Phase I environmental report.
For rental homes and 2–4 unit properties, see residential investment property financing; for independent living, assisted living and memory care, see senior housing financing. When a property needs short-term funding before permanent financing, compare our commercial real estate bridge loans, or browse all commercial real estate loans.
Multifamily Property Loan FAQs
What is a multifamily property loan?
A multifamily property loan finances an apartment building. Commercial Finance Partners arranges multifamily financing for properties with a minimum of five units through Fannie Mae, Freddie Mac, FHA and bridge loan programs, with loans from $1,000,000 and terms of up to 30 years.
What DSCR do you need for a multifamily loan?
Our multifamily program requires a minimum debt service coverage (DSC) of 1.15. DSCR is the property’s cash flow or net operating income divided by its annual debt service, so net operating income must be at least 1.15 times the loan payments.
How do you get a loan for a multifamily property?
The property must be a multifamily building with at least five units, meet 85% physical and 70% economic occupancy, and be owned by a single asset entity. Lenders require an appraisal, a property condition assessment and a Phase I environmental report. Loans start at $1,000,000 with up to 90% LTV.
Why Work with Commercial Finance Partners?
- Leverage Existing Assets
- Increased Working Capital
- Creative Deal Structure
- Alternative to Equity
- Growth Focused
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