Multifamily Loans — 5+ Units, No Income Docs, Fast Close
Own or buying an apartment building? We offer multifamily loans for 5+ unit properties — DSCR qualification based on the property’s net operating income, no personal income documentation required. From small apartment buildings to mid-size complexes, we fund them across Texas and 45 states.
Multifamily Loan Highlights
- 5 units and up — apartment buildings, mixed-use with residential, garden-style complexes
- DSCR qualification on NOI — no tax returns, no W-2s
- Up to 75% LTV on stabilized properties
- Loan amounts from $250,000 to $10M+
- 30-year amortization, 5–10 year term (fixed or ARM)
- Interest-only period available on select programs
- Close in 21–45 days (hard money available in 10–14 days)
- LLC, LP, and corporate borrowers eligible
- Non-recourse available on stabilized assets $1M+
- Texas and 45 states
Multifamily Programs We Offer
DSCR Multifamily
Qualify on NOI. No personal income docs. 30-yr am, 5–10 yr term. Up to 75% LTV on stabilized, cash-flowing properties.
Bridge / Value-Add
Acquiring a distressed or under-occupied building? Bridge loans fund the purchase while you renovate and lease up. Refi to permanent at stabilization.
Hard Money Multifamily
Close in 10–14 days. Asset-based, no income docs, no minimum credit on some programs. Up to 65% LTV. Best for time-sensitive acquisitions.
Non-Recourse
Stabilized properties with 1.25+ DSCR and experienced sponsors. $1M+ loan minimum. Your personal assets stay protected.
How Multifamily Loans Are Underwritten
Commercial multifamily loans (5+ units) are underwritten on the property’s income, not yours. The key metrics are Net Operating Income (NOI) and DSCR:
| Metric | Formula | Example |
|---|---|---|
| Gross Rental Income | All rents collected | $12,000/mo (10 units × $1,200) |
| Vacancy Allowance | Typically 5–10% | −$600/mo |
| Operating Expenses | Taxes, insurance, mgmt, maintenance | −$3,200/mo |
| Net Operating Income | Gross − Vacancy − Expenses | $8,200/mo ($98,400/yr) |
| Annual Debt Service | Loan payment × 12 | $72,000/yr |
| DSCR | NOI ÷ Debt Service | 1.37 ✅ |
Multifamily Loan Terms
| Feature | DSCR / Perm | Bridge / Value-Add | Hard Money |
|---|---|---|---|
| Units | 5+ | 5+ | 5+ |
| Max LTV | 75% | 70–75% of ARV | 65% |
| Term | 5–10 yr (30-yr am) | 12–36 months | 6–24 months |
| Amortization | 25–30 years | Interest-only | Interest-only |
| Rate | 7.5% – 10% | 9% – 12% | 10% – 13% |
| Income docs | None (NOI qualifies) | None | None |
| Close time | 21–45 days | 14–21 days | 10–14 days |
| Min loan | $250,000 | $250,000 | $150,000 |
| Non-recourse | Available ($1M+) | Rarely | No |
Small vs. Large Multifamily — What Changes
There is an important lending distinction based on unit count:
- 2–4 units (residential): Treated as residential lending — DSCR programs, 30-year fixed, conforming-adjacent guidelines. Down payment typically 20–25%.
- 5–20 units (small commercial multifamily): Treated as commercial. Underwritten on NOI/DSCR. Our programs start here. Slightly higher rates but no property count limits, LLC eligible, non-recourse available.
- 20–100+ units (mid-size multifamily): Full commercial underwriting, agency programs (Fannie Mae Small Balance, Freddie Mac SBL) may apply for stabilized assets. We bridge these to agency takeout or fund directly on DSCR programs.
The Value-Add Multifamily Strategy
One of the most common multifamily plays: buy an under-occupied or distressed building at a discount, renovate units, raise rents to market, then refinance at the higher stabilized value. A bridge loan funds the acquisition and renovation. A permanent DSCR loan is the exit once occupancy and rents are stabilized.
Example: Buy a 12-unit building at $900,000 (70% occupied, rents $200 below market). Bridge loan at 65% LTV = $585,000. Spend $120,000 on unit renovations. Stabilized value at full occupancy with market rents: $1,400,000. Refi to DSCR at 75% LTV = $1,050,000. Pay off bridge, pocket ~$345,000 in equity, keep the building.
Eligible Property Types
- Garden-style apartments — 5–100+ units, surface parking, suburban markets
- Urban mid-rise — structured parking, elevator buildings, 20–200 units
- Mixed-use multifamily — ground-floor commercial with residential units above
- Student housing — near colleges/universities, by-the-bed or by-the-unit leasing
- Senior housing (independent living) — age-restricted communities, standard rental structure
- Value-add / distressed — below-market occupancy, deferred maintenance, below-market rents
- NNN multifamily — fully stabilized, below-market cap rate, non-recourse candidates
Multifamily Loan FAQ
What DSCR is required for a multifamily loan?
Most permanent multifamily programs require a minimum DSCR of 1.20–1.25 on stabilized NOI. Bridge programs are more flexible — we lend on the as-is value and projected NOI at stabilization, so current DSCR below 1.0 is acceptable if the value-add plan is credible. Hard money has the most flexibility — we lend primarily on equity, not cash flow.
How do you calculate NOI on a multifamily property?
NOI = Gross Potential Rent − Vacancy Allowance − Operating Expenses. We do not subtract mortgage payments from NOI (debt service is compared to NOI separately to get DSCR). Operating expenses include property taxes, insurance, property management fees (typically 8–10% of gross rents), maintenance reserves, and utilities paid by the owner. We use actual historical expenses or market benchmarks — whichever is more conservative.
Can I get a multifamily loan in an LLC?
Yes — nearly all commercial multifamily loans are made to LLCs or other entities. This is standard practice and does not affect program terms in most cases. Entity lending requires a personal guarantee from members holding 20%+ ownership on recourse programs. Non-recourse programs by definition do not require a personal guarantee, though they may have “bad boy” carve-outs for fraud or intentional misrepresentation.
What is a bad boy carve-out?
A bad boy carve-out is a provision in non-recourse multifamily loans that makes the loan personally recourse if certain “bad acts” occur — fraud, misrepresentation, environmental contamination, bankruptcy filing, or misappropriation of rents. Standard non-recourse loans are not personally guaranteed for normal default, but the bad boy carve-out protects the lender from intentional misconduct. This is industry standard and should not discourage legitimate borrowers from seeking non-recourse financing.
How long does a multifamily loan take to close?
DSCR permanent multifamily loans typically close in 21–45 days — the main variable is the commercial appraisal timeline (10–21 days). Bridge and hard money loans close in 10–21 days. If you have a time-sensitive acquisition, hard money is the fastest path — we can commit in 48 hours and close in under 2 weeks on clean deals.
Do you lend on out-of-state multifamily properties?
Yes — we fund multifamily loans in 45 states. Texas is our home market but we actively lend in Florida, Georgia, Tennessee, the Carolinas, Arizona, Colorado, Ohio, and most other states. Some markets with very limited comparable sales or unusual regulatory environments may require additional review. Call us about your specific market.
Ready to discuss your multifamily deal? Apply today — or call 877-895-3634. Free quote, no hard credit pull.