Multifamily Loans for 5+ Unit Apartment Buildings
Business Purpose Lending

Apartment buildings, financed on what they earn.

Once a building has five or more units, it is a commercial loan. The lender underwrites the building’s income first and the sponsor second. Whether you are buying a tired property to fix up or refinancing a full, stable one, the right structure depends on where the building is today and where you are taking it.

How it works

Multifamily Loans, step by step.

  1. Stabilized or value-add? A building that is full and earning goes to long-term lenders. A building that needs work, has vacancy or is under market rent goes to bridge lenders first.
  2. The income qualifies the loan. Lenders read the trailing 12 months of income and expenses and the current rent roll, then size the loan so the net income covers the payment with room to spare.
  3. Bridge to fix, long-term to hold. Value-add loans commonly run 12 to 36 months, interest only, and can fund renovation. Once the building is stabilized, you refinance into a long-term loan.
  4. Your track record helps. Experience owning or managing rentals improves terms. A first multifamily purchase is possible, often with an experienced property manager in place.
  5. We shop the whole market. Banks, private lenders, debt funds and agency-style programs all lend on apartments. We take your file to the ones that fit it.
At a glance
Property5+ unit apartment buildings and mixed-use with apartments
QualifyingBuilding income (NOI) covering the payment
Bridge term12 to 36 months, interest only, renovation funds available
Long-termLonger fixed terms on a 25 to 30 year amortization
OccupancyBusiness purpose, non-owner-occupied

These are typical market terms, not a quote. Every file is priced on its own facts and each lender’s current guidelines, and we confirm the exact numbers in writing before you commit.

Who it fits

Built for these borrowers.

  • Investors buying their first apartment building
  • Value-add buyers repositioning an older property
  • Owners refinancing a stabilized building
  • Small landlords moving up from 1 to 4 unit rentals
  • Sponsors buying with partners
What we will ask for

Documents to gather.

  • Purchase contract, or current mortgage statement for a refinance
  • Trailing 12 months of income and expenses
  • Current rent roll
  • Renovation budget and scope, for value-add
  • Schedule of real estate owned
  • Personal financial statement for each sponsor
  • Entity documents and EIN letter
  • Property management agreement or plan

Have a project that fits?

Send us the scenario and we will tell you honestly whether it works, and which lender is the right home for it.

Other programs

Explore the rest of the shelf.