Multifamily Loans for Apartment Buildings and 5+ Unit Properties

A multifamily loan finances the purchase or refinance of an apartment building or residential property with five or more units. Because several tenants pay rent under one roof, lenders underwrite these deals on the income the building produces. A well-run multifamily property can deliver steady cash flow, and every unit you add spreads your vacancy risk across more renters.

Cambridge Capital works with first-time apartment buyers and experienced operators to structure multifamily financing around the property and the business plan. Call 800-826-5077 or read more about our multifamily loans to review your next acquisition.

How a Multifamily Loan Works

You share the rent roll, operating expenses and purchase price. We calculate the net operating income (NOI), measure it against the proposed loan payment, and size the loan around leverage, rate, term and amortization. Many multifamily loans offer long amortization and may include interest-only periods, with the loan repaid over time or through a later refinance or sale.

Key Features of Multifamily Loans

• Property income drives approval: NOI and debt service coverage matter more than your personal income.
• 5+ unit properties: garden-style apartments, mid-rise buildings, townhome communities and more.
• Purchase, refinance and cash-out: buy a building, replace an existing loan or pull equity to grow.
• Value-add friendly: financing options can support properties that need renovations or lease-up.
• Long-term options: longer amortization schedules can lower the monthly payment.
• Entity borrowing: close in an LLC or partnership to separate the property from personal assets.
• Experience considered: your track record as an owner or operator can strengthen the file.
• Guidance from application to closing: a team that understands apartment deals.

Multifamily Property Calculator

Build the numbers from the rent roll. Enter your unit count, average rent, vacancy and expenses to see the NOI, loan, debt service, DSCR and cash-on-cash return. The rate and leverage shown are examples, not an offer.

Why Choose a Multifamily Loan?

• Spread your risk: one vacant unit in a 24-unit building hurts far less than one vacant single-family rental.
• Scale faster: one purchase adds many doors, with one roof, one closing and one property to manage.
• Value follows income: raising rents or cutting expenses increases the property’s value, which is why many investors target value-add buildings.
• Operating efficiency: shared systems, on-site management and bulk purchasing can lower the cost per unit.
• Steady demand: housing is a basic need, and rental demand often stays resilient across market cycles.

Multifamily Loans vs. Other Financing

Residential and DSCR programs usually stop at four units. Once a building has five or more, the financing moves into multifamily and commercial underwriting. If a building needs work or you must close quickly, a bridge loan can get you to the closing table first, and a multifamily loan can replace it once the property is stabilized.

Who Are Multifamily Loans Best For?

Multifamily loans fit investors moving up from single-family rentals, operators buying apartment buildings, value-add investors who plan to renovate and raise rents, landlords refinancing a maturing loan, and partnerships pooling capital for larger deals. If your goal is to build long-term income from a larger rental portfolio, multifamily is a natural next step.

Other Real Estate Loan Options

Not sure which loan fits your plan? Explore our other investment property programs: