Multifamily Property Loans

Commercial Real Estate Loans

Multifamily Property Loans

Multifamily is the one property type with a financing advantage nothing else in commercial real estate can match: it’s the only asset class eligible for Fannie Mae and Freddie Mac agency financing. That access, combined with lower perceived risk, is why multifamily consistently sees higher leverage and lower rates than office, retail, or industrial properties of similar quality.

Buying instead of leasing isn’t just a purchase – it’s a long-term positioning move: fixed occupancy costs instead of rising rent, equity growth instead of rent checks, and a stronger balance sheet and exit profile. For many owners, it becomes the foundation everything else is built on.

Get Pre-Qualified

At a Glance

Property Definition	5+ units for commercial multifamily financing (2-4 unit properties are typically financed differently, closer to residential)
Leverage	Generally higher than other commercial property types
Term Options	5-10 years conventional/bank; up to 35 years fully amortizing on select agency (HUD) programs
Financing Sources	Fannie Mae, Freddie Mac, bank, CMBS, bridge

Why Multifamily Financing Is Different

Multifamily is the only property type eligible for agency loans – financing backed by Fannie Mae or Freddie Mac, which package and sell the loans as bonds to investors with an implied government guarantee. That guarantee is what allows agency lenders to offer some of the most competitive rates and highest leverage in commercial real estate, since the risk to the ultimate investor is lower than a typical bank loan.

Beyond agency programs, multifamily is financeable through conventional bank loans, CMBS (conduit), and bridge financing – giving you multiple paths depending on the property’s stabilization, your hold strategy, and how quickly you need to close.

Financing Sources

Fannie Mae / Freddie Mac (Agency) - the lowest rates and highest leverage available for stabilized multifamily, with fixed, floating, or hybrid rate options and terms that can extend well beyond what conventional bank financing offers
Bank / Conventional - more flexibility on structure and faster execution, typically on 5-10 year terms
CMBS / Conduit - competitive fixed rates for stabilized properties, packaged and sold in the secondary market
Bridge - for properties that aren't yet stabilized enough to qualify for permanent financing, or that need renovation before refinancing into a long-term loan

What Lenders Look For

Rent roll and T-12s - verifying actual occupancy, rents, and property-level income
DSCR - whether the property's net operating income comfortably covers the proposed loan payment
Reserves - some agency and HUD programs require ongoing reserves for repairs and replacements
Prepayment terms - agency loans in particular can carry significant prepayment penalties, so plan your hold period before you lock in a structure

Ready to Finance Your Multifamily Property?

Get Pre-Qualified

Frequently Asked Questions

What counts as a multifamily property for commercial financing?

Generally, five or more units. Properties with 2–4 units are typically financed closer to a residential structure rather than through commercial multifamily programs.

Why do multifamily properties get better rates than other commercial real estate?

Multifamily is the only property type eligible for Fannie Mae and Freddie Mac agency financing, which lowers risk to the ultimate investor and allows for more competitive rates and higher leverage than office, retail, or industrial financing.

What term lengths are available for multifamily loans?

Conventional bank and CMBS financing typically runs 5–10 years. Select agency and HUD programs offer fully amortizing terms up to 35 years.

Do multifamily loans have prepayment penalties?

Often, yes – particularly on agency financing. The penalty structure varies by program, so it’s worth confirming before you close if you expect to sell or refinance within a few years.

Address

402 5th Ave Ste 102
Indialantic, FL 32903

Write to us

info@comcapfl.com

Call Us

(888) 959-1648

Commercial Capital Ltd., FL is a direct lender and correspondent for 300+ additional funding sources – including banks, credit unions, and private capital – ranked among the nation’s top 40 commercial lenders for loans closed.