Why Multifamily Is the Strongest Asset Class in CRE
Multifamily properties benefit from the deepest lender pool in commercial real estate. Agency lenders (Fannie Mae and Freddie Mac) provide below-market rates with non-recourse terms that no other property type can access. This means lower rates, higher leverage, and personal asset protection.
Whether you're acquiring a stabilized 20-unit building or repositioning a 200-unit value-add opportunity, the financing options are broader and more competitive than any other CRE sector.
Loan Programs for Multifamily
| Program | Loan Size | LTV | Rate Type | Term | Recourse |
|---|---|---|---|---|---|
| Fannie Mae | $1M+ | Up to 80% | Fixed / ARM | 5-30 years | Non-Recourse |
| Freddie Mac | $1M+ | Up to 80% | Fixed / Floating | 5-20 years | Non-Recourse |
| Freddie SBL | $750K-$7.5M | Up to 80% | Fixed / Hybrid | 5-20 years | Non-Recourse |
| CMBS | $2M+ | Up to 75% | Fixed | 5-10 years | Non-Recourse |
| Bank / Credit Union | $500K+ | Up to 75% | Fixed / ARM | 3-10 years | Recourse |
| Bridge | $1M+ | Up to 80% LTC | Floating | 12-36 months | Varies |
| HUD 223(f) | $2M+ | Up to 85% | Fixed | Up to 35 years | Non-Recourse |
Pro tip: If your property is 90%+ occupied with 12+ months of stabilized financials, you likely qualify for agency financing — the lowest rates and longest terms in CRE. If you're still in lease-up or renovation, a bridge loan gets you stabilized, then you refinance into agency permanent.
What Lenders Want to See
- Trailing 12-month financials — actual income and expenses for the past year (T-12)
- Current rent roll — unit mix, rents, lease expirations, vacancy
- Sponsor financial statement — net worth and liquidity (typically need net worth equal to loan amount)
- Sponsor experience — track record of owning/managing similar properties
- Property condition report — deferred maintenance, capex needs
- Business plan — for value-add: renovation budget, pro forma rents, timeline
The Residential-to-Multifamily Pipeline
Most of our CRE borrowers started with single-family rentals and DSCR loans. Scaling from 1-4 units to 5+ units is the single biggest leverage point in real estate investing. You move from residential underwriting (personal income, DTI) to commercial underwriting (property income, DSCR, sponsor experience).
We built this platform specifically for that transition. If you have 5+ DSCR properties and you're ready to buy your first apartment building, we've done this hundreds of times. We know which lenders will credit your SFR experience, which programs have the lowest barriers to entry, and how to structure the deal to maximize your approval odds.
Submit Your Multifamily Deal
Tell us about your property and your experience. We'll match it to the right lending program and deliver competing term sheets within 48 hours. No obligation. No credit pull until you choose a lender.