Multifamily Loans — 5+ Unit Apartment Financing | Investor Funding Guide
🏢 5+ UNIT APARTMENT FINANCING

MULTIFAMILY
LOANS

Stable, scalable financing for 5+ unit apartment buildings. From small-balance to institutional, value-add to stabilized — we have programs for every multifamily strategy.

QUICK STATS

Multifamily loan parameters
Loan Amount$500K – $100M+
Max LTVUp to 80%
Min DSCR1.20
Rates From5.99%
Term5 – 30 years
Property Size5 – 500+ units
WHY MULTIFAMILY

The most scalable asset class in real estate.

Multifamily real estate has historically delivered the strongest risk-adjusted returns of any asset class. Predictable cash flow, scalable operations, and access to non-recourse agency debt make 5+ unit properties the foundation of serious investor portfolios.

We work across the full multifamily spectrum: small-balance value-add deals (5-50 units), mid-market stabilized properties (50-200 units), and institutional acquisitions (200+ units) with agency, CMBS, and bridge debt.

  • Non-recourse loans available (Fannie/Freddie)
  • Up to 30-year amortization
  • Interest-only periods on stabilized assets
  • Bridge-to-perm structures for value-add
  • Supplemental loans available later

EXAMPLE DEAL

24-unit apartment building, value-add play.

Purchase Price$2,400,000
Rehab Budget$420,000
Loan (75% LTC)$2,115,000
Current NOI$165,000
Stabilized NOI$285,000
Stabilized Value (6.5% Cap)$4,385,000
Equity Created$1,565,000
LOAN PROGRAMS

MULTIFAMILY PROGRAMS

Match the right financing to your strategy — value-add bridge, stabilized perm, agency, or construction-to-perm.

🌉

BRIDGE / VALUE-ADD

Acquire and renovate underperforming properties. 12-36 month terms, up to 80% LTC, interest-only. Refi to perm at stabilization.

🏛

AGENCY (FANNIE/FREDDIE)

Non-recourse, fixed-rate financing for stabilized 5+ unit properties. Up to 80% LTV, 30-year amortization, best rates.

📊

SMALL-BALANCE

Designed for 5-30 unit properties under $7.5M. Streamlined underwriting, faster close than traditional agency.

🏗

CONSTRUCTION-TO-PERM

Build new 5-200+ unit apartments with construction debt that converts to permanent agency at completion.

💼

CMBS / DEBT FUND

Larger transactions ($10M+) with flexible structures, including mezzanine, preferred equity, and bridge debt.

💵

CASH-OUT REFI

Pull equity from stabilized properties to fund the next acquisition. Up to 75% LTV, no seasoning required.

LOAN TERMS

MULTIFAMILY LOAN TERMS

$
$100M+
Max Loan Amount
%
80%
Max LTV
📅
30YR
Amortization
🛡
NON
Non-Recourse
PROPERTY TYPES

WHAT WE FINANCE

🏘

GARDEN-STYLE

Low-rise garden apartment communities, 5-300+ units. The most common multifamily asset type.

🏢

MID/HIGH-RISE

Urban apartment buildings 4+ stories. Class A/B/C properties in major and secondary markets.

🏠

SMALL APARTMENT

5-20 unit buildings — the entry point for many multifamily investors. Small-balance programs available.

🎓

STUDENT HOUSING

Properties near universities with by-the-bed leasing. Specialized programs for student-focused assets.

🏥

SENIOR HOUSING

Independent living and age-restricted multifamily. Agency programs available with experienced operators.

🏚

WORKFORCE HOUSING

Class B/C affordable workforce housing. Often eligible for green/affordability rate discounts.

HOW IT WORKS

FROM LOI TO CLOSE

1

DEAL ANALYSIS

Submit T-12, rent roll, and offering memo. We analyze and provide a competitive LOI within 48 hours.

2

APPLICATION

Sign LOI, pay application fee, submit borrower package. Third-party reports ordered immediately.

3

UNDERWRITING

Appraisal, environmental, engineering, and credit underwriting run in parallel. Typically 30-45 days.

4

RATE LOCK & CLOSE

Lock the rate, finalize legal docs, and close. Most multifamily deals close within 60-75 days of LOI.

FAQ

MULTIFAMILY QUESTIONS

What's the minimum number of units?
5 units is the minimum for "true" multifamily / commercial financing programs. Properties with 1-4 units are considered residential and use DSCR rental loan products instead. Some lenders consider 5-6 unit properties on either platform — we'll match you to whichever delivers the better rate and structure.
Are multifamily loans recourse or non-recourse?
Most stabilized agency loans (Fannie Mae, Freddie Mac) are non-recourse with standard "bad-boy" carve-outs. Bridge and value-add debt is typically recourse with a personal guarantee, though non-recourse options exist for larger, experienced sponsors. We'll structure based on your preferences and the deal profile.
What's the minimum DSCR for multifamily?
Agency lenders typically require 1.20-1.25 DSCR at the in-place NOI. Bridge lenders may accept 1.10 or even sub-1.0 if there's a clear path to stabilization. The exact requirement depends on the program, market, and asset class.
How long does multifamily financing take to close?
Bridge and small-balance loans can close in 30-45 days. Full agency loans (Fannie/Freddie) typically take 60-90 days due to extensive third-party reports (appraisal, environmental, property condition, seismic in some markets) and underwriting requirements.
Do I need previous multifamily experience?
For agency loans on properties under $5M, no prior multifamily experience is strictly required if you have strong financials and reserves. For larger transactions, lenders prefer 2-3 years of multifamily ownership or partnering with an experienced sponsor. First-time multifamily buyers often start in the 5-20 unit space.
Can I cash-out refinance to buy more properties?
Yes — multifamily cash-out refis are very common. Typical max LTV for cash-out is 70-75%. Many investors use a "refinance every 5-7 years" strategy to recycle equity into new acquisitions, which is one of the key wealth-building advantages of multifamily.

READY TO FINANCE YOUR NEXT MULTIFAMILY DEAL?

From your first 8-unit to your hundredth deal — we have the programs to fund every step of your multifamily strategy.

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