How to Finance a Multifamily Property

The short answer: To finance a multifamily property, match the loan to the deal: commercial multifamily loans for standard 5+ unit purchases and refinances, DSCR loans when you want to qualify on the property's rental income instead of your own, bridge loans for value-add or quick closings, and construction loans for ground-up. Lenders size the loan against the property's income and value — typically its debt-service coverage ratio (DSCR) — so a property that cash-flows well can carry the financing even if your personal income is modest.

Buying an apartment building or rental portfolio comes down to picking the right loan and showing the numbers work. This guide walks through the options, what lenders require, and how investors buy multifamily with limited cash. To talk through a specific deal, reach out or apply now.

The main ways to finance multifamily

• Commercial multifamily loans — the standard route for 5+ unit buildings, underwritten on the property's income and value. See our multifamily loan program.
• DSCR loans — qualify primarily on the property's cash flow rather than personal income; popular with investors building a portfolio. See DSCR / rental financing.
• Bridge loans — short-term capital to acquire, reposition, or stabilize a value-add property before permanent financing. See bridge loans.
• Construction loans — ground-up development with a path to permanent financing. See construction loans.
• Agency and government-backed programs (FHA/USDA/Fannie/Freddie) — specialized long-term financing for qualifying properties; terms and eligibility are program-specific.

Note: 1–4 unit rental properties are usually financed as residential; 5+ units is commercial multifamily. We focus on the 5+ unit and portfolio side, plus DSCR loans for smaller rentals.

What lenders require

Multifamily underwriting centers on the property, then the borrower. Expect lenders to look at:

• DSCR — the property's net operating income divided by its debt payment; many programs want roughly 1.20x+ (DSCR-style loans can go lower).
• Down payment / LTV — commonly 20%–30% down, depending on the property and program.
• Property condition and occupancy — stabilized properties get the best terms; value-add deals often use bridge financing first.
• Borrower credit and experience — stronger credit and a track record improve leverage and pricing.
• Reserves — cash to cover vacancies and maintenance.

How to buy multifamily with limited cash

"Buy with no money" is mostly a myth, but there are legitimate ways to stretch limited capital: partner with an investor who brings the down payment, use seller financing to reduce cash at closing, buy a value-add deal with a bridge loan and refinance once it's stabilized, or — if you'll live in one unit of a small property — explore owner-occupied options. The common thread is a deal that cash-flows well enough to attract a lender and a partner.

How Market Capital Lending helps

We arrange multifamily, commercial real estate, DSCR, bridge, and construction financing through a network of 40–50 lenders, with 40+ years of experience and $375M+ funded. That range lets us match your building to the lender whose leverage, DSCR requirements, and property appetite fit best — from a small building to a large portfolio, and across 46 states as you grow. See multifamily financing in Atlanta or start your application. (Rates, approval, and terms vary by credit, collateral, loan amount, DSCR, and underwriting.)

Frequently asked questions