Multifamily Loans
Loan Trust offers multifamily commercial real estate loans for apartment building with five or more units and is the premiere lender nationwide for FHA Multifamily Loans, Fannie Mae Multifamily, Commercial Multifamily Loans and are your go to source for funding your Multifamily Commercial Real Estate Loans.
Our Commercial Lending Division is the leader in multifamily property financing. We offer bank, institutional, and private money financing options for multifamily assets nationwide. Loan Trust underwrites loans across multiple lenders simultaneously to ensure our clients attain the most competitive market rates and terms available for asset acquisition and refinancing.
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Multifamily Programs | Loan Size | Max LTV/ARV | Min. Credit |
---|---|---|---|
1 Yr Bridge Int/Only | $75K – $25M | 75% LTV | 500 |
2 Yr Bridge Int/Only | $75k – $25M | 75% LTV | 500 |
1 Yr Fix & Flip/Rehab I/O | $75k – $2.5M | 90%/75% ARV | 620 |
1 Yr Fx & Flip/Rehab LOC | $75k – $10M | 90%/75% ARV | 620 |
1 Yr Construction I/O | $15K – 2.5M | 90%/75% ARV | 620 |
1 Yr Construction LOC | $150K-$10M | 90%/75% ARV | 620 |
3 YR & 8 Yr Fixed P & I | $100k – $5M | 75% LTV | 650 |
5, 7, 10, 15, 20 YR Fixed | $100K -$25M | 75% LTV | 650 |
FHA Multifamily | $1M – UP | 90% LTV | 650 |
FHA Multifamily Loan
FHA Insured Loan Programs
FHA insures multifamily loans originated by FHA approved lenders for the construction, substantial rehabilitation, and acquisition and refinancing of apartments and health care facilities.
There are three types of FHA multifamily loan options:
- FHA multifamily acquisition loan: Best for most borrowers as it’s used to purchase or refinance existing multifamily buildings
- FHA multifamily construction/rehab loan for co-ops: Best for borrowers looking to build or renovate cooperative housing units like senior care facilities or low-to-moderate-income housing
- FHA multifamily construction/rehab loan for condos: Best for borrowers looking to build or renovate condominiums
What is an FHA Multifamily Loan?
An FHA multifamily loan is a mortgage loan, issued by a lender and insured by the Federal Housing Administration (FHA), that’s used to purchase a property with five or more units. These loans are subject to FHA loan limits and qualifications.
FHA loans have lower interest rates and down payment requirements than conventional mortgages. FHA multifamily loans are different from standard FHA mortgage loans, and it can be difficult to find a lender that offers them.
If you’re looking for an FHA multifamily loan, the United States Department of Housing and Urban Development (HUD) can help.
FHA Multifamily Qualifications
Loan Amount | $1 million and up |
Maximum Loan Amount per Unit, Nonelevator Building | $54,892 for zero bedrooms up to $101,352 for four or more bedrooms |
Maximum Loan Amount per Unit, Elevator-included Building | $64,026 for zero bedrooms up to $123,193 for four or more bedrooms |
Maximum Loan-to-Value (LTV) Ratio | Up to 90%—varies by the project |
Minimum Down Payment | At least 10% |
FHA Rates & Terms
Rates | 3.78% and up |
Terms | Generally five to 35 years |
Loan Origination Fees | Up to 1% of loan amount |
Closing Costs | 2% to 5% of amount borrowed |
Prepayment Penalty | 1% of loan balance |
Funding Time | 60 to 180 days |
FHA Loan Requirements
Number of Allowable Units | Five or more with furnished kitchens and bathrooms |
Minimum Credit Score | Five or more with furnished kitchens and bathrooms |
Maximum Debt-to-Income (DTI) Ratio | 67% |
Minimum Debt Service Coverage Ratio (DSCR) | 1.17x |
Cash Reserves | Three to nine months |

The most common type of FHA multifamily loan is the multifamily acquisition loan, which is used to purchase or refinance a property. This loan is easier to qualify for than the two types of construction or rehabilitation loans.
These loans are classified under sections 207/223(f) with HUD. Loan to value ranges from 83.3% for market-rate projects up to 90% for section 202 and 202/8 direct loans, which are loans for housing for the elderly or disabled.
Fannie Mae Multifamily
The Fannie Mae Multifamily Loan Program is one of the most utilized funding resources for apartment owners nationwide because of its attractive interest rates, variety of loan structure options, high loan-to-values, and non-recourse guaranty structure. With both fixed and floating rate options available, it is a great product for most multifamily property types, including affordable housing, senior independent living, student housing, cooperative housing, traditional market rate apartments, and manufactured housing. It can also be used for mixed-use buildings where the other commercial units make up 20% or less of the gross income. Apply for a commercial multifamily loan.

Eligible Properties | Market-Rate (Conventional) Apartments Affordable Housing Senior Housing Student Housing Manufactured Housing Cooperative Housing (in Boston, Chicago, Los Angeles, New York, Washington D.C.) |
Loan Terms1 | 5-30 years (fixed-rate), 7 years (adjustable rate) |
Amortization | Up to 30 years |
Interest-Only | Part- or full-term available on fixed-rate products (depends on LTV) |
Max LTV2 | 55% (Tier 4), 65% (Tier 3), 75-80% (Tier 2) |
Min DSCR3 | 1.55x (Tier 4), 1.35x (Tier 3), 1.25x (Tier 2) |
Recourse | Usually non-recourse except for “bad boy” carve-outs |
Interest-Only Period | Available on a case-by-case basis |
Prepayment Penalty4 | Yield maintenance or Step-Down (for additional spread or fee) on fixed-rate terms; 1% fee (after 1 year lock-out) on adjustable terms |
Loan Assumption5 | Available, with pre-approval and assumption fee (usually 1%) |
Rate Lock Available6 | Yes, through the Streamlined Rate Lock |
Loan Servicer7 | Originator, or may be transferred to a third party |
Secondary financing7 | Yes, 12+ months after closing, through FNMA Supplemental Loan Program |
Insurance & Tax Reserve | Required unless low-leverage (typically 65% LTV or less) |
Capital Reserves | Required for most properties over 65% LTV, especially older properties or properties with deferred maintenance |
Fannie Mae Multifamily Small Loan Program
For borrowers looking for smaller multifamily loans with faster, more streamlined processing, the Fannie Mae Multifamily Small Loan Program could be the perfect fit. This program offers terms including:
Loan Size: Between $750,000 and $5 million ($3 million in smaller markets)
Unit Requirements: 5 unit minimum
Leverage: 80% maximum LTV allowance
Closing Costs: Borrowers can finance up to 3% of closing costs
Documentation: No tax return requirement
Interest Options: Fixed and hybrid ARM interest options available
DSCR: Minimum 1.25 DSCR
In addition to not requiring tax returns, these loans typically require less stringent documentation when it comes to physical needs and environmental assessments. And, just like DUS loans, Fannie Mae Small Loans have a 35% commercial space limit and a 20% rental income limit for commercial tenants.
Fannie Mae Affordable Housing Loan Program
Investors who want to finance or refinance an affordable housing development need look no further than the Fannie Mae Affordable Housing Loan Program. The Affordable Housing Loan Program is available specifically for properties with Section 8 Housing Assistance Program (HAP) contracts and expiring LIHTC properties. This program offers:
Loan size: $1 million or more
Leverage: 80% maximum LTV allowance
Amortization: 30 years
DSCR: Minimum 1.15 DSCR
Underwriting: Flexible underwriting guidelines
Assumability: Assumable (with lender approval and a 1% fee)