Multi-family loans finance residential properties with five or more units, underwritten primarily on the property's rental cash flow and DSCR. Options include Fannie Mae and Freddie Mac agency loans (5–10 year fixed, 25–30 year amortization) and short-term bridge loans for value-add repositioning, with LTVs up to 75–80%.
What is a Multi-Family?
Multi-family loans finance residential properties with five or more units — apartment buildings and complexes that generate rental income. These loans are underwritten primarily on the property's cash flow (net operating income and DSCR), making them ideal for investors building a rental portfolio.
ASB Capital Loan Funding arranges multi-family financing from agency programs (Fannie Mae, Freddie Mac) to bridge and value-add loans. Whether you are acquiring a stabilized 8-plex or refinancing a 50-unit complex, we match the property's strategy to the right capital structure.
Program Highlights
- 5+ unit properties
- Fannie Mae & Freddie Mac agency programs
- Bridge-to-permanent financing
- Value-add and rehab capital
- Non-recourse options available
- Qualify on property cash flow (DSCR)
Who This Loan Is For
- •Investors acquiring apartment buildings
- •Owners refinancing stabilized multi-family
- •Value-add investors repositioning properties
- •Portfolio builders scaling rental holdings
Typical Requirements
- •Property with 5+ residential units
- •DSCR typically 1.25+ for best terms
- •Stabilized occupancy (or a value-add plan)
- •Property condition meeting appraisal standards
- •Borrower experience for some programs
- •Down payment / equity of 20–30%
Key Terms to Know
- Multi-Family Loan
- Financing for residential properties with 5+ units, underwritten primarily on the property's rental cash flow.
- DSCR
- Debt Service Coverage Ratio — the property's net operating income divided by its debt payments. A 1.25 DSCR is a common minimum.
- Agency Loan
- A loan backed by Fannie Mae or Freddie Mac, offering competitive rates and terms for stabilized multi-family properties.
- Non-Recourse
- A loan structure where the lender's recourse is limited to the property itself, not the borrower's other personal assets.
See our FAQ and loan resources for more definitions and checklists.