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1st Nationwide Mortgage

Commercial Multi-Family Loans | 5+ Unit Apartment Financing

Commercial multi-family loans for 5+ unit apartment buildings. Up to 75% LTV, 30-year amortization, nationwide lending. No state licensing delay — close in any U.S. state.

Multi-Family Loans — 5+ Unit Apartment Buildings

Once you scale past 4 units, residential DSCR programs end and commercial multi-family takes over. The underwriting gets more sophisticated — true NOI analysis, rent rolls, tenant estoppels — but the financing also unlocks longer amortization, non-recourse options, and higher leverage on stabilized properties.

We finance 5-unit to 500+ unit apartment buildings across all U.S. states with no broker licensing delay.

Check Multi-Family Loan Eligibility Talk to a Multi-Family Specialist — (833) 350-9185

Program Highlights

FeatureTypical Range
Loan amounts$500,000 – $10,000,000+
LTVUp to 75% (purchase and cash-out refinance)
DSCR minimum1.20–1.25
Amortization25 or 30 years
Term5, 7, 10-year fixed; longer available on agency
Rate typeFixed or adjustable
RecourseRecourse or non-recourse (larger loans)
VestingLLC (single-asset SPV preferred)
Minimum occupancy85–90% stabilized
Reserves6–12 months operating + capex
EnvironmentalPhase I ESA typically required

For agency multi-family loans (Fannie Mae / Freddie Mac Small Balance) on stabilized 5+ unit properties, we can access non-recourse financing with longer 30-year terms and competitive rates. Eligibility depends on property size, market, and sponsor qualifications.

Who Buys Multi-Family

  • Graduating DSCR investors moving up from 1–4 unit rentals to small apartment buildings
  • Portfolio buyers acquiring existing apartment complexes with in-place cash flow
  • 1031 exchange buyers rolling up from single-family portfolios into a single larger multi-family
  • Syndicators and fund sponsors buying with institutional capital structure
  • Value-add investors buying below-market-rent buildings to reposition

The multi-family asset class is one of the most stable in commercial real estate — diversified tenant base, recession-resilient demand, and clear exit liquidity.

Sample Scenario

24-Unit Garden-Style Apartments, Tampa FL

  • Purchase price: $3,200,000
  • Down payment: $800,000 (25%)
  • Loan amount: $2,400,000
  • Gross rents: $38,400/month
  • Operating expenses: $12,800/month (33% OER)
  • NOI: $25,600/month × 12 = $307,200 annual
  • Debt service (at 6.5%, 30-yr amort): $181,800/yr
  • DSCR: $307,200 ÷ $181,800 = 1.69
  • Result: Approved. Full commercial underwriting, 60-day close.

How Multi-Family Differs From Small-Unit DSCR

Up to 4 units, residential DSCR programs apply — faster close, minimal docs. At 5+ units, commercial underwriting kicks in:

  • Rent roll analysis — every unit, every lease, every tenant
  • Historical operating statements — 2+ years of actual expenses
  • Trailing 12-month (T-12) income statement — lender verifies stabilized operations
  • Tenant estoppel certificates — tenants confirm their lease terms
  • Appraisal with income capitalization — commercial appraiser values on NOI ÷ cap rate, not comparables
  • Phase I Environmental — for loans above $1M typically

More paperwork, but the trade-off is bigger loan amounts, longer amortization, and non-recourse options not available on 1–4 unit residential.

Frequently Asked Questions

Our multi-family programs start at $500,000. For smaller deals (sub-$500K), we can often route a 5–8 unit property through our DSCR program or NONI — same no-income-doc structure, faster close.
Yes, but most value-add multi-family uses bridge financing first (see our hard money options or ask about bridge-to-perm), then refinances into a permanent multi-family loan once stabilized. Pure stabilized acquisitions can close directly on permanent debt.
Yes, on stabilized properties. LTV typically caps at 70–75% cash-out depending on DSCR, sponsor, and market. Cash-out proceeds can be used for acquisitions, property improvements, or capital return to investors.
Non-recourse is available, typically for loans above $1M on stabilized (90%+ occupied) properties with experienced sponsors. Fannie Mae Small Balance and Freddie Mac SBL are the most common non-recourse paths for 5–50 unit properties.
For small balance (5–20 units), many lenders accept first-time multi-family buyers with strong single-family rental track records. For larger properties and non-recourse, expect to demonstrate comparable operating experience, liquidity (often 10% of loan amount), and net worth requirements.
Check Multi-Family Loan Eligibility Talk to a Multi-Family Specialist — (833) 350-9185

1st Nationwide Mortgage, NMLS 1281. Commercial multi-family loans subject to property, sponsor, and market underwriting. LTV, DSCR, and rates vary by loan size, property type, and investor quality. Not all applicants or properties will qualify.

Ready to Get Started?

Talk to a licensed loan officer about your options — no obligation.

Check Multi-Family Loan Eligibility Call (833) 350-9185