Multi-Family Property Loans
Multi-family property loans for 5+ unit apartment buildings with access to Fannie Mae, Freddie Mac, HUD, and commercial bank programs. Up to 80% LTV, non-recourse options, and the lowest-cost financing available in commercial real estate.
About Multi-Family Loans
Multi-family property loans finance apartment buildings, duplexes scaled up to garden-style complexes, and larger multi-housing assets. Multi-family enjoys the lowest financing costs in all of commercial real estate thanks to deep agency (Fannie Mae, Freddie Mac) and government (HUD/FHA) programs that guarantee long-term non-recourse debt. Loans ranging from small $1M–$5M bank programs up to $50M+ institutional agency debt are available across the capital stack.
Key Features & Benefits
Everything you need to know about what makes Multi-Family financing a smart choice.
Agency Programs (Fannie/Freddie)
Access to Fannie Mae DUS and Freddie Mac Optigo loans with non-recourse structure.
HUD/FHA 223(f)
The lowest-rate, longest-term multi-family loan available — 35-year fully amortizing, non-recourse.
Up to 80% LTV
Higher leverage than office or retail CRE due to defensive multi-family characteristics.
Non-Recourse Standard
Most multi-family loans above $1–2M are non-recourse — a major protection for investors.
Interest-Only Options
Partial or full-term I/O available on many programs to maximize cash-on-cash returns.
Supplemental Loans
Many agency programs allow supplemental loans 12+ months after origination for additional capital.
Who Uses Multi-Family Financing
- Acquiring 5–50 unit apartment buildings
- Large garden-style apartment complex investment (100+ units)
- Student housing near universities
- Senior independent living (age-restricted) properties
- Affordable/tax-credit housing (LIHTC properties)
- Refinancing existing multi-family debt into lower rate
- Supplemental loan to extract equity post-acquisition
Qualifications & Eligibility
- 5+ residential units (1–4 units qualify as residential DSCR)
- Stabilized at 90%+ occupancy for best terms (or value-add bridge loan)
- DSCR of 1.25x+ for agency programs; 1.20x for banks
- Borrower net worth of ~1x loan amount; liquidity of 10%+
- Multi-family ownership experience (1+ comparable properties)
- Property in primary, secondary, or tertiary market
- Physical and environmental condition acceptable
How It Works
Our streamlined process gets you from application to funding quickly.
Program Selection
We identify optimal execution (Fannie, Freddie, HUD, life co., bank) based on deal size, market, and investor profile.
Term Sheet & Rate Lock
Lock indicative rate/spread early in the process; market-rate adjustments may apply at commitment.
Third-Party Reports
Order appraisal, Phase I environmental, PCA, and for HUD: cost analysis and market study.
Underwriting
Comprehensive review of property, sponsor, market, and financials — 45–75 days for agency, 90–120 for HUD.
Closing
Multi-family closings can take 60–180 days depending on program. HUD is longest but offers lowest rates.
Why Choose Growth Fund Partners for Multi-Family
Frequently Asked Questions
Common questions about Multi-Family loans answered.
What\u2019s the minimum loan size for Fannie/Freddie?
Small balance programs start around $1M; standard conventional agency typically $6M+. Bank multi-family loans can go as small as $500K.
Are multi-family loans non-recourse?
Yes — most agency and HUD loans are non-recourse with standard carve-outs (fraud, environmental, bankruptcy). Bank loans under $3M may still require recourse.
What\u2019s the difference between Fannie Mae and HUD for multi-family?
Fannie Mae/Freddie Mac close in 60–90 days with competitive rates. HUD 223(f) takes 6–9 months but offers 35-year fully amortizing terms at the lowest rates available.
Can I finance value-add multi-family properties?
Yes — Freddie Mac Small Balance Loan, Fannie Mae Green Rewards, and bridge lenders offer value-add programs that finance both acquisition and renovation capex.
Related Loan Programs
Explore similar financing options that might fit your needs.
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