Multi-Family Loan

Overview

Multi-family loans (5+ units) live in their own world separate from 1-4 unit residential. The dominant capital sources are Fannie Mae and Freddie Mac (agency multifamily), HUD/FHA, banks, life insurance companies, debt funds, and CMBS.

Each capital source has its niche: agency for stabilized properties at attractive long-term fixed rates, banks for relationship-driven and bridge needs, debt funds for value-add, HUD for the longest-term and highest-leverage permanent debt. Picking the right path depends on your business plan.

Who it's for

Investors and sponsors buying 5+ unit apartment buildings
Owners refinancing stabilized rental properties
Value-add and repositioning sponsors
Family offices and syndicators

What's typically reviewed

Property NOI, DSCR, and trailing financials
Sponsor experience and liquidity
Rent roll and lease audit
Market and submarket data
Capital plan (for value-add) and exit strategy

This is a general description, not a guarantee of approval. Specific requirements vary by lender and program. Final qualification is determined during underwriting.

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