Multifamily Financing

Best uses

• Acquiring stabilized apartment buildings
• Refinancing maturing multifamily debt
• Value-add repositioning with renovation budgets
• Cash-out to fund the next acquisition

Typical borrower profile

• Investors moving up from 1-4 unit properties
• Experienced sponsors growing a portfolio
• Partnerships and syndications with a lead sponsor

Potential qualification factors

Every lender sets its own criteria, and no factor guarantees or blocks approval on its own. Commonly reviewed items include:

• Net operating income and debt service coverage
• Occupancy and rent roll quality
• Sponsor experience and net worth
• Market strength and property condition

Documentation to have ready

• Government-issued ID
• Entity documents (LLC or corporation)
• Purchase contract or payoff statement
• Property details and photos
• Insurance quote or declarations page
• Trailing 12-month operating statement
• Current rent roll
• Sponsor real estate schedule and financial statement

Benefits

• Larger loan sizes than residential programs
• Non-recourse options exist for qualifying deals
• Value-add programs fund renovation budgets
• Longer amortizations support cash flow

Common challenges to plan for

• Commercial underwriting takes longer and costs more up front
• Sponsor experience matters heavily
• Occupancy or condition problems tighten terms fast

Frequently asked questions