Multifamily
Multifamily financing
Multifamily financing is commercial real estate debt on apartment properties of five or more units, with investor DSCR loans for smaller rentals. Lenders size to the lesser of loan-to-value and debt service coverage, and the binding test is usually coverage.
Programs we arrange
- HUD 221(d)(4)Non-recourse construction-to-permanent debt for new or substantially rehabilitated apartments.
- HUD 223(f) multifamilyLong-term, fixed-rate, non-recourse refinance for existing apartment communities.
- HUD 223(a)(7)Streamlined refinance of an existing HUD-insured multifamily loan.
- Fannie Mae multifamilyFixed-rate, non-recourse agency loans for stabilized apartment communities.
- Freddie Mac multifamilyFixed-rate, non-recourse agency loans from Freddie Mac's lender network.
- Multifamily bridgeFloating, interest-only debt for value-add apartment business plans.
- DSCR investor loansRental property loans underwritten on the property's debt service coverage.
How to choose a path
HUD 223(f) offers market-rate leverage of 87% at 1.15x DSCR with a 35-year fixed term. Agency loans offer about 80% leverage with shorter terms and faster execution. Bridge loans fund business plans that are not yet stabilized.
- Long hold, stabilized: HUD 223(f)
- New construction or heavy rehab: HUD 221(d)(4)
- Shorter hold, speed: Fannie Mae or Freddie Mac
- Value-add: multifamily bridge, then a permanent loan
- Small investor rentals: DSCR investor loans
California considerations
California rent rules, including AB 1482, and local ordinances limit how fast rents can grow on covered units. Lenders underwrite to those limits, so we include them in the business-plan test.
Frequently asked questions
Which is better for apartments, HUD or Fannie Mae?
HUD offers longer fixed terms and higher leverage with a slower process. Agency loans are faster with shorter terms. The right choice depends on hold period and timing.
Does green certification lower HUD MIP?
No. HUD multifamily now uses a single flat annual premium for applications on or after its effective date.
Related financing
- Hard money and bridge loansShort-term, asset-based private loans for speed and flexibility.
- Senior living financingHUD, SBA, bridge and bank options for senior living owners.
- Hotel financingSBA, CMBS and bridge options for hotel owners and buyers.
- Construction financingBank, debt fund, HUD and C-PACE options for construction projects.
Talk through your deal with an advisor
Send the basics and a licensed Corin advisor reviews which programs and lenders may fit, or size the loan yourself first.