Multifamily Loans of 5 units or more fall into the commercial category of loans and are underwritten using the DCR (Debt Coverage Ratio). These loans are the de facto standard for income-producing real estate. The loan is based on the property’s net operating income and the lender’s required DCR ratio, which measures the property’s ability to generate enough cash flow to cover the loan payments. In other words, the loan is underwritten based on the property’s ability to pay back the loan rather than the borrower’s creditworthiness. DCR loans are typically offered by commercial banks, life insurance companies, and other institutional lenders, and often require a down payment of 35% or more of the property’s value. Allow us to shop for a loan amongst the commercial banks we work with to find you the best loan for your building.

Credit Score, Loan to Value, and Experience can also influence the downpayment amount and interest rate.