Multi-Family Overview:
What is a C. Multi-Family Loan?
Documents you'll need
Benefits of
C. Multi-Family Loans
Requirements for C. Multi-Family Loans
Apply today!
What is a Commercial Multi-Family Loan?
A multifamily loan is a commercial real estate loan used to finance apartment buildings with five or more units. These loans help investors purchase, refinance, or upgrade rental properties. Chase offers multifamily financing ranging from 500,000 to 25 million or more, with terms designed for stable, income-producing properties.
The Documents you will need:
The Documents
you will need:
Personal Documents
Government-issued ID, credit history, and any additional lender-required paperwork.
Rental property pro forma
A financial projection showing expected income, expenses, and cash flow for the property.
2 years of tax returns
Personal and/or business tax documents to verify income and financial history.
Current rent roll
A document listing all tenants, lease terms, and rental income for the property.
Operating statements & profit/loss statements
Records of the property’s income, expenses, and profitability.
Personal financial statement
A summary of your assets, liabilities, and net worth.
Bank statements proving cash reserves
Recent statements showing sufficient liquidity for down payments and reserves.
Purchase agreement or refinance estimates
The signed contract (for purchases) or refinance terms (for loans).
Higher Limits, Longer Terms
Unlike single-family home loans, commercial multifamily loans are designed for investment properties—which means higher loan amounts (typically 20+ million) and different qualification standards. To make cash flow work for investors, these loans also offer extended terms (up to 30 years) and competitive rates (often starting around 5%). They’re strictly for properties with five or more units, with commercial-grade underwriting to match the scale of the investment.
Property Requirements
Minimum Unit Requirement
The property must contain at least 5 rental units.
Loans are not eligible for single-family homes, duplexes, or small residential properties (e.g., 1–4 units).
Property Condition
No major deferred maintenance (e.g., structural issues, roof replacement, HVAC failure).
Minor repairs and routine upkeep are acceptable (e.g., paint, flooring, appliance updates).
Financial Performance
Must demonstrate positive cash flow with verified rental income.
Vacancy rates should not exceed 10–15% (market-dependent).
Strong rental demand in the area is required (supported by market data).
Zoning & Compliance
Property must be zoned correctly for multifamily use.
No illegal conversions or unpermitted construction (e.g., unauthorized ADUs, non-compliant units).
Title Verification
A preliminary title report will be ordered to:
Confirm legal ownership.
Identify liens, easements, or encumbrances.
Resolve any title issues prior to closing.
Borrower Requirements
Credit Score
At least 650, but 700+ gets you the best rates
No major recent delinquencies or bankruptcies
Debt-to-Income (DTI) Ratio
Keep your total monthly debts under 45% of your income
Lenders want to see you’re not stretched too thin
Loan-to-Value (LTV) Ratio
Most lenders will finance up to 80% of the property’s value
Putting more down can mean better terms
Cash in the Bank
Have enough reserves to cover a year’s worth of mortgage payments
Shows you can handle vacancies or unexpected costs
Real Estate Experience
Bonus points if you’ve owned or managed similar properties before
First-timers may need stronger financials
Healthy Financial Picture
Your assets (minus debts) should show you’re financially stable
The stronger your net worth, the better
Minimum Down Payment
Plan to put down at least 20-25%
Shows you’re invested in the property’s success
Benefits of Commercial Multi-family Loans
Stronger Cash Flow Potential
Multifamily properties typically generate steady rental income from multiple units, reducing reliance on a single tenant. This consistent cash flow helps cover expenses and improves loan repayment stability.
Easier Financing
Lenders favor multifamily loans because they’re considered lower risk—people always need housing. You’ll often get better terms (like higher LTVs and lower rates) compared to retail or office spaces.
Scalable Investment Growth
Adding more units under one roof means higher returns without the hassle of managing scattered properties. Many investors use these loans to quickly expand their portfolios.
Tax Advantages
Well-located multifamily properties tend to appreciate over time while offering deductions for depreciation, interest, and operating expenses—boosting long-term ROI.
Commercial Interested
Multi-Family Loans
Ideally for:
Growing Investors – Scaling from single-family to 5+ units
Portfolio Optimizers – Seeking stable cash flow & tax benefits
Value-Add Buyers – Upgrading underperforming properties
Long-Term Builders – Targeting appreciation & institutional exits
Take the Next Step
Commercial multifamily loans offer competitive leverage, strong cash flow potential, and accelerated growth for serious investors. Let’s discuss how we can structure the perfect financing solution for your next acquisition or refinance. Contact us today – your next 5+ unit property could be just one conversation away.