Multifamily · NMLS #1707407

Multifamily Financing for Real Estate Investors

Multifamily loans finance rental properties with more than one unit, from a duplex up to large apartment buildings. For investors, the best programs qualify the loan on the property's rental income instead of your personal income, so you can keep growing without tax returns holding you back.

Get my multifamily quote See today's DSCR rates

2–4 to 50+units financed

No tax returnson DSCR and lite doc

Up to 75–80%LTV on purchases

Name or LLCclose how you hold

Why it matters

2–4 units vs. 5+ units: why the line matters

As a broker, we shop your building across DSCR, small-balance commercial and portfolio lenders. That matters more with multifamily than almost any other loan type, because lenders draw the line between "residential" and "commercial" in different places, and the right fit can change your leverage, your paperwork and how fast you close.

2–4 units are treated as residential. You can use a standard DSCR loan with the same terms as a single-family rental.
5–9 units sit in between. Some DSCR lenders offer residential-style programs for these buildings with simpler paperwork. See DSCR loans for 5–9 units.
10+ units are usually financed as commercial real estate, with a rent roll, operating statements and a commercial appraisal. See commercial loans.

Requirements

Multifamily loan requirements

These are typical ranges across the lenders we work with. Your terms depend on the building, its numbers and your experience.

	2–4 units	5–9 units	10+ units (commercial)
Credit score	Usually 620–680+	Usually 680–700+	Many programs from 650; some lower with more equity
Max loan-to-value (purchase)	Up to 75–80%	About 65–75%	Up to about 75–80%
DSCR	Often 1.0; some lower; no-ratio available	About 1.0–1.1	1.15–1.25 standard; no-ratio available
Income documents	Lease or market rent	Leases and rent roll	Rent roll, leases, operating statement (T12)
Tax returns	Not required on DSCR	Not required on DSCR	Optional: DSCR, lite doc or full doc
Ownership	Personal name or LLC	Usually LLC	LLC with a personal guarantee

Loan options

Your multifamily loan options

For apartment buildings we have DSCR, lite doc and full doc options. The more documentation you provide, the lower the rate tends to be.

DSCR (including no-ratio): qualifies on the property's rent and value, with no personal or business tax returns. Simplest and often fastest.
Lite doc: uses the building's rent roll, leases and operating income, still with no tax returns.
Full doc: adds two years of personal and business tax returns for the lowest cost.

We'll walk through which options you'd likely qualify for and which one fits your timeline.

Real results

Closed in under 3 weeks after another lender stalled. An investor buying a multifamily property came to us after his first DSCR lender pushed the closing back with extension after extension. We did the upfront work, shopped his loan across DSCR lenders and closed it in less than 3 weeks.

"Trevor helped get us quickly to closing on a multifamily property when a competing DSCR lender could not. We closed in under 3 weeks! Trevor did a lot of up front work and shopped around DSCR lenders to get the best rate. Great experience. Will definitely be reaching out again for our next purchase."

— Ryan B., 5-star Google review

A 48-unit building every lender turned down.

"A client inherited a 48-unit apartment building after her husband passed away. The management company she hired was stealing from her and not keeping the books up to date, so every lender she talked to said no. We got her approved through our no-ratio commercial option, and she got the money she needed to replace the building's AC units."

— Trevor Gravink, Mortgage Broker, ReBroker Buddy (NMLS #1707407)

Multifamily

What lenders look at on a multifamily building (and what trips investors up)

Actual rents vs. market rents. Lenders usually use the lower of the lease and the appraiser's market rent. If your plan depends on raising rents, run the numbers on today's rents first.
Real operating expenses. On 5+ units, lenders underwrite taxes, insurance, utilities the owner pays, repairs, management and reserves. Seller numbers that leave out owner-paid water or a management fee make the deal look better than it is.
Occupancy. Many standard programs want the building stabilized, often around 75% occupied or more. Buildings with heavy vacancy may need a no-ratio or bridge option first.
Property taxes after the sale. In many states taxes are reassessed when the building sells. Budget on the new tax bill, not the seller's.
Insurance. Get a real quote early. In California, check fire coverage and whether you'll need the FAIR Plan; in Florida, check wind coverage and hurricane deductibles; everywhere, check the FEMA flood map.
The books. Rent rolls, leases and a trailing 12-month statement (T12) that match the bank deposits make approval faster. If the records are a mess, ask about no-ratio options while you clean them up.

Weigh it up

Pros and cons of multifamily loans

Pros	Cons
Qualify on rental income, often with no tax returns	5+ unit loans usually need more down payment
More units under one loan and one roof	More documents: rent roll, leases, T12
Vacancy in one unit doesn't stop all income	Prepayment penalties are common
Close in an LLC	Appraisals and insurance cost more
DSCR, lite doc and full doc options	Lenders draw the 5+ unit line differently

What clients say

Reviews from our clients

FAQ

Multifamily financing FAQ

Is a 5-unit building a commercial loan?

Often, but not always. Many lenders treat 5+ units as commercial, while some DSCR lenders have residential-style programs for 5–9 units with simpler paperwork.

How much down payment do I need for an apartment building?

Usually 20–35%, depending on the number of units, your credit and the program.

Can I get a multifamily loan without tax returns?

Yes. DSCR and lite doc programs qualify the loan on the building's income.

Can I use the rent from a vacant unit?

Lenders usually use the appraiser's market rent for vacant units on 2–4 unit properties. On larger buildings, heavy vacancy can limit your options, so ask about no-ratio programs.

Can I buy a multifamily property in an LLC?

Yes. Most investor programs allow it, and many require it for 5+ units.

How fast can I close?

Often in 3–5 weeks for DSCR and small-balance programs, depending on the appraisal and how quickly documents come in.

Keep exploring

More investor loans

Get started

Get your multifamily loan quote

Answer a few quick questions about the property and your plans. There's no credit check to see your options, and we'll shop your scenario across our lenders.

Prefer to talk first? Call (619) 404-6637 or book a free consultation.

Business-purpose loans for non-owner-occupied investment properties. Programs, guidelines and ranges shown are typical of the wholesale lenders we work with and can change at any time. Not a commitment to lend. Broker Buddy LLC, Trevor Gravink NMLS #1707407.