Multifamily Loans

For our multifamily loan products, we define multifamily as residential properties with 5 or more units under a single title. Properties with 1–4 units are handled under our fix-and-flip, bridge, or DSCR rental products. Our multifamily program covers apartment buildings from 5 to 50 units, as well as mixed-use properties where the residential component is at least 75% of the total rentable square footage.

For value-add deals with high vacancy, we underwrite on a bridge product using the 'as-stabilized' value — the projected value once the property is renovated and leased to market. We review the current rent roll, the market vacancy rate, the sponsor's business plan, and the projected pro forma income. We do not require current stabilization for bridge financing — that's exactly what the bridge product is designed to solve.

Yes. This is one of our most common multifamily borrower journeys. You use the bridge product to acquire or stabilize, then transition to our long-term multifamily DSCR product once occupancy reaches 85%+ and the property's DSCR supports permanent financing. Because you're already a NextRes customer, the refinance process is significantly faster — we already have your background, experience, and entity documents on file.

Yes, with conditions. We consider mixed-use properties where residential units represent at least 75% of the gross leasable area (GLA). For example, a 6-unit apartment building over a single retail space qualifies. We do not lend on primarily commercial assets with a small residential component. The strength of the retail tenancy is evaluated as part of underwriting.

For our long-term multifamily DSCR product, we require a minimum DSCR of 1.20 calculated on the 5-unit+ property's net operating income divided by the proposed annual debt service. This is slightly higher than our 1–4 unit DSCR product because multifamily management expenses (vacancy, maintenance, management fees) are factored more conservatively. We use actual rent rolls and trailing 12-month expense statements for stabilized assets.