Property Type

Multifamily & Apartment Building Loans.

From 5-unit walk-ups to 200+ unit apartment complexes — finance your multifamily acquisition, refinance, or value-add project with DSCR, bank, agency, and CMBS options.

80%
Max LTV (Agency)
5–8.5%
Rate Range
5–35 yr
Loan Terms
Non-Recourse
Agency Option
No credit impact Agency & DSCR specialists Multiple lender options No upfront fees
BY SIZE

Multifamily Financing by Building Size

The optimal loan product changes dramatically based on unit count. A 5-unit walk-up and a 150-unit garden complex use completely different financing paths.

Small Multifamily (5–20 Units)
Walk-ups, small apartment buildings
The entry point for most apartment investors. DSCR loans dominate this segment — no personal income docs, qualification based on rent roll. Portfolio banks and credit unions also compete. Down payment: 20–25%. Many investors start here and 1031 exchange up.
Mid-Size Apartment (20–50 Units)
Garden-style, low-rise complexes
Enough units for meaningful economies of scale. On-site management becomes justified. Bank and CMBS options open up alongside DSCR. Agency lending (Fannie/Freddie) begins at this tier with minimum loan amounts around $1M–$3M.
Large Apartment (50+ Units)
Institutional-grade, agency-eligible
Full agency financing (Fannie Mae, Freddie Mac) available with the best rates, longest terms (up to 35 years), and non-recourse. Life company and CMBS also compete. Professional management required. Institutional investor demand makes this the most liquid multifamily segment.
FINANCING OPTIONS

Loan Options for Multifamily Properties

Multifamily has the widest range of financing options in all of CRE — including agency lending exclusive to apartment buildings.

DSCR Loan
No income docs, fastest for small MF
Rate7–9%
LTV70–80%
Term5–30 years
Min DSCR1.0–1.25x

The go-to for 5–20 unit buildings. No tax returns. Qualification based on rent roll. Close in 21–35 days. Scale your portfolio without affecting personal DTI.

Agency (Fannie/Freddie)
Best rates, non-recourse, 35-year terms
Rate5–7%
LTVUp to 80%
Term5–35 years
Min Loan$1M–$3M+

The gold standard for apartment financing. Non-recourse, lowest rates, longest terms. Only available for multifamily (not office, retail, or industrial). Stabilized properties with 90%+ occupancy.

Conventional Bank
Local banks, relationship pricing
Rate6–8%
LTV65–75%
Term5–25 years
DSCR1.25x+

Full documentation. Community banks may offer relationship pricing and flexibility on unit count. Good for borrowers with existing banking relationships.

CMBS / Bridge
Large deals, value-add, repositioning
Rate6.5–12%
LTV60–75%
Term2–10 years
Min Loan$2M+

CMBS for large stabilized complexes. Bridge for value-add deals: acquire, renovate units, raise rents, then refinance into agency or permanent. Non-recourse available.

KEY METRICS

What Lenders Evaluate for Apartment Loans

Multifamily underwriting is the most standardized in CRE. These are the core metrics every lender evaluates.

DSCR
1.20–1.25x
Agency requires 1.25x. DSCR loans accept 1.0x
Occupancy
90%+ for permanent
Below 85% = bridge territory
Cap Rate
4–7% by market
Gateway cities lower, secondary higher
Per-Unit Value
$80K–$300K+/unit
Varies dramatically by market and class
Rent Comparables
At or above market
Below-market rents = value-add opportunity
Down Payment
20–30%
Agency allows 20–25% at best rates
THE PROCESS

How Multifamily Financing Works

01

Share Your Deal

Unit count, rent roll, unit mix (1BR/2BR/3BR), purchase price or estimated value, current occupancy, and your investment strategy (buy-and-hold vs value-add).

02

Submit to BestLoanUSA

Single application. No hard credit pull. We assess your deal across DSCR, bank, agency, and CMBS options based on property size and stabilization.

03

Advisor Review with Jason

Jason analyzes your rent roll, unit economics, market comps, and investment timeline to recommend the optimal loan structure. Small MF often goes DSCR. 50+ units may qualify for agency.

04

Lender Matching

We submit to multifamily-specialist lenders. For agency deals, we connect with Fannie/Freddie approved sellers. You receive competing term sheets.

05

Underwriting & Appraisal

Multifamily appraisal with income approach. Provide rent roll, T-12 operating statement, unit-level lease abstracts, and property condition report.

06

Close & Fund

DSCR: 21–35 days. Bank: 30–45 days. Agency: 45–75 days. CMBS: 45–75 days. Bridge: 14–30 days.

Ready to Finance Your Apartment Building?

No credit pull. No commitment. See what multifamily financing options are available for your deal.

FAQ

Frequently Asked Questions

At what unit count does a property become "commercial" multifamily?

Properties with 5 or more residential units are classified as commercial multifamily and require commercial financing. 1–4 unit properties are residential and can use conventional residential mortgages (Fannie Mae residential, FHA). The financing options, rates, and underwriting process are fundamentally different above and below the 5-unit threshold.

What is agency lending and why is it special for apartments?

Agency lending refers to loans originated through Fannie Mae and Freddie Mac multifamily programs. Agency loans offer the best rates in CRE (5–7%), terms up to 35 years, and non-recourse (you’re not personally liable). This program is ONLY available for multifamily properties — not office, retail, or industrial. It’s the single biggest financing advantage apartment investors have over other CRE asset classes.

Can I buy a 5-unit building with no income verification?

Yes. DSCR loans qualify you based on the property’s rent roll, not your personal income. If the building’s NOI covers at least 1.0–1.25x of the annual debt service, you qualify without providing tax returns, W-2s, or pay stubs. This is the most popular path for investors scaling from 5 to 20+ units.

What is a value-add multifamily deal?

Value-add means acquiring a property below market value, renovating units (new kitchens, bathrooms, flooring, appliances), raising rents to market rates, and refinancing at the higher appraised value. Bridge loans fund the acquisition and renovation. Once stabilized at 90%+ occupancy with market rents, you refinance into permanent or agency financing at a much lower rate.

How do lenders analyze a rent roll?

Lenders examine current rents vs market comparables, lease expiration dates, tenant payment history, vacancy trends, and unit mix. They calculate effective gross income (total rent minus vacancy and concessions), subtract operating expenses, and arrive at NOI. The rent roll is the foundation of multifamily underwriting — a clean, well-documented rent roll speeds up approval significantly.

Can I use a 1031 exchange to buy an apartment building?

Yes. 1031 exchanges are one of the most common entry points into multifamily. Sell a smaller investment property, defer capital gains taxes, and reinvest into a larger apartment building. The exchange must follow IRS rules: identify replacement property within 45 days and close within 180 days. Many investors 1031 from single-family rentals or small multifamily into larger apartments.