Asset Class

Multifamily Financing Options

Multifamily assets can be financed through several programs depending on the business plan. Stabilized buildings suit conventional or DSCR debt; value-add and quick-close acquisitions suit bridge; ground-up and major renovation suit construction financing; and investors holding several buildings can consolidate under a rental portfolio loan.

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Applicable Programs

Which Loan Fits a Multifamily Deal?

Program Best For Typical Leverage

Bridge Value-add, rescue, quick close Up to 80% as-is

Construction Ground-up, major renovation Up to 90% cost / 75% ARV

Conventional Stabilized purchase or refi Up to 90% purchase

DSCR Cash-flowing hold, no doc Up to 70%

Rental Portfolio Several buildings, one loan 70%–80%

Explore Programs

Loan Programs for Multifamily

Construction Loans500M-100MMLearn More →Bridge Loans500M-100MMLearn More →Conventional CRE500M-100MM+Learn More →Rental Portfolio500M-100MMLearn More →Non-QM Loans150M-5MMLearn More →DSCR Financing1M-50MMLearn More →

Underwriting

What Lenders Look At on Multifamily

Unit count and mix. 1–4 units is treated as residential investment; 5+ crosses into true commercial underwriting with different programs and pricing.
Rent roll and lease quality. Actual in-place rents, lease terms, and how far below market the building is sitting.
Debt service coverage. Net operating income against annual debt service — typically 1.20+ on stabilized assets.
Occupancy and turnover. Vacancy, historical churn, and whether the building is in lease-up.
Expense load. Taxes, insurance and management as a share of gross income — insurance in particular has repriced hard.
Sponsor experience. How many comparable buildings you have operated, which matters most on value-add and construction.
Regulatory exposure. Rent stabilization or local rent-control regimes materially change the underwriting.

Market Context

Where Multifamily Sits Right Now

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Frequently Asked Questions

Multifamily Financing Questions

Five units is the usual dividing line. Buildings of 1-4 units are underwritten as residential investment property and fit DSCR or Non-QM programs; 5+ units is treated as true commercial multifamily, which opens conventional, bridge and agency-style execution.

Yes, but the program changes. A stabilized lender will want occupancy and coverage in place, so a building in lease-up or heavy vacancy usually goes bridge first, then refinances into permanent debt once the rent roll supports it.

Up to 90% of purchase on conventional execution, up to 80% of as-is value on bridge, and up to 70% on DSCR. Construction is measured against cost and after-repair value rather than current value — up to 90% of cost or 75% ARV.

Materially, yes. Regulated units cap the income upside a lender will underwrite, which limits both leverage and the credibility of a value-add business plan. It is one of the first things underwriting will check on a New York deal.

Yes — that is what a rental portfolio loan does. Multiple buildings are bundled under a single mortgage with one payment, and a release clause lets you sell individual assets out of the pool without unwinding the whole facility.

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