# How to Finance a Multifamily Property

> How to finance a multifamily property (5+ units) with a commercial loan: up to $15,000,000 for purchase or rate-and-term refinance, up to 75% LTV, 1.15x minimum DSCR, 680 minimum FICO.

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## Quick answer

A multifamily property with 5 or more units is financed with our commercial loan: up to $15,000,000 for purchase or rate-and-term refinance (up to $5,000,000 for cash-out), up to 75% LTV, a DSCR of at least 1.15x, a FICO of at least 680, a 5-30 year term and up to 30-year amortization. Properties with 1-4 units use the residential DSCR program instead.

## Loan parameters

- Loan size: $100,000 to $15,000,000 for purchase and rate-and-term refinance; cash-out refinance up to $5,000,000
- Loan type: Multifamily

## Eligible assets

- Multifamily (5+ units)

## Underwriting guidelines

- Minimum DSCR 1.15x
- Up to 75% LTV
- Minimum FICO 680
- Illustrative: a $4,000,000 value at 75% LTV supports a loan of up to $3,000,000, if the DSCR also meets 1.15x

## FAQs

**Q: What loan fits a multifamily property?**

For 5+ units, the commercial permanent loan. For 1-4 units, the DSCR rental program. If the building needs repositioning, see our value-add page and confirm the structure for your deal.

**Q: What DSCR does multifamily need?**

1.15x at minimum. Use net operating income ÷ debt service on the same annual basis.

## Related

- [Multifamily Loans](https://riversidepark.capital/multifamily-loans)
- [CRE Loan Requirements](https://riversidepark.capital/cre-loan-requirements)
- [Value-Add CRE Loans](https://riversidepark.capital/value-add-cre-loans)

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Source: Riverside Park Capital - https://riversidepark.capital/how-to-finance-multifamily-property