Multifamily Loans (5+ Units)
Multifamily loans finance investment properties with five or more units. These business-purpose programs generally evaluate the property’s income and operating performance alongside borrower factors. Property type, unit count, and market can affect structure. Program availability, terms, and eligibility vary by lender, property, and jurisdiction.
Who It's For
- Investors acquiring or refinancing 5+ unit properties
- Borrowers scaling into larger multifamily assets
- Owners seeking to access equity in a multifamily property
Common Uses
- Purchasing a 5+ unit apartment property
- Refinancing an existing multifamily loan
- Accessing equity in a stabilized multifamily property
Qualification Overview
- Multifamily programs generally evaluate the property’s income and operating expenses along with borrower factors.
- Property condition, occupancy, and market are typically considered.
- Requirements vary by program and investor.
Common Variables
- Number of units and property class
- Net operating income and occupancy
- Market and location
- Borrower experience and reserves
Eligible Property Types
- 5+ unit apartment properties
- Certain mixed-use properties (program-dependent)
Common Documentation
- Operating statements and rent roll (program-dependent)
- Property information
- Entity documents
Loan Purpose
Business-purpose financing for multifamily investment properties.
Potential Advantages
- Supports scaling into larger assets
- Income-focused evaluation on eligible programs
- Purchase, refinance, and cash-out scenarios may be available
Potential Considerations
- Underwriting can be more involved than single-family
- Operating performance affects eligibility
- Terms vary by property and market
Frequently Asked Questions
- Are 5+ unit properties different from 2–4 unit properties?
- Yes. Properties with five or more units are generally treated as commercial multifamily and evaluated on property income and operations, while 2–4 unit properties often fit residential DSCR programs. Requirements vary by program.
Program details are general and for educational purposes only. This is not a commitment to lend, an offer, or specific loan terms. All programs are business-purpose investor loans subject to underwriting, property review, investor guidelines, and applicable law. Availability, eligibility, and terms vary by state and transaction. Simple DSCR is an assumed business name of WooHoo Mortgage LLC, NMLS #2347993.