Google Rating
4.9
See all our reviews
Multi-Family Investment Loans — Financing for 2-4 Units and Beyond
Multi-family properties offer investors multiple income streams from a single investment. Whether you're buying a duplex as your first investment or scaling to apartment buildings, understanding multi-family financing is essential.
Trusted by over 2,500 California families
2-4 Unit
Residential Options
5+ Unit
Commercial Loans
House-Hack
Strategies
Explore Multi-Family Financing Options
No impact to your credit score.
Explore Multi-Family Financing Options
No impact to your credit score.
Multi-Family Property Categories
Multi-family financing splits into two distinct categories based on unit count, each with different loan programs, underwriting standards, and terms.
2-4 Units (Residential)
- Financing: Standard residential mortgages
- Property types: Duplexes, triplexes, fourplexes
- Occupancy: Owner-occupied or investment
- Terms: 30-year fixed available
- Down payment: Lower if owner-occupied (3.5% FHA, 0% VA)
Best for: First-time investors and house hackers
5+ Units (Commercial)
- Financing: Commercial loans
- Underwriting: Property-focused (based on NOI)
- Terms: Shorter 5-10 year terms
- Qualification: Based on property net operating income
- Down payment: Higher at 20-30%
Best for: Experienced investors scaling portfolios
Loan Options for 2-4 Unit Properties
Owner-Occupied Options
FHA Loan
3.5% down payment, 580+ credit score. Ideal for house hacking — live in one unit, rent the rest.
VA Loan
0% down for eligible veterans. Must occupy one unit as primary residence.
Conventional
5-15% down payment, 680+ credit score. Competitive rates with PMI removal at 20% equity.
Investment-Only Options
Conventional Investment
25% down payment, full documentation required. Maximum 10 financed properties allowed.
DSCR Loan
20-25% down payment, no income verification needed. Unlimited properties based on property cash flow.
Commercial Loans for 5+ Units
Properties with five or more units require commercial financing. These loans are underwritten based on the property's income rather than personal income alone.
Conventional Commercial
Based on NOI and cap rate. 20-30% down payment, 5-10 year terms. Available as recourse or non-recourse.
Agency Loans (Fannie/Freddie)
For larger complexes with competitive rates. $1M+ minimum loan size. Prior experience typically required.
CMBS / Conduit Loans
Best for stabilized properties. Non-recourse with fixed rates. Subject to prepayment restrictions.
Bridge Loans
For value-add or unstabilized properties. 12-36 month terms at higher rates. Transition to permanent financing after stabilization.
House Hacking with Multi-Family
House hacking is one of the most powerful wealth-building strategies for new investors. Buy a multi-family property, live in one unit, and let your tenants cover most — or all — of your mortgage.
The Strategy
Purchase a 2-4 unit property using owner-occupied financing (lower down payment, better rates). Live in one unit while renting the others. After 12 months, you can move out, keep the property as a full rental, buy a new primary residence, and repeat the process.
Example: Triplex House Hack
After 12 months: Move to a new primary, keep as full rental, and repeat the process.
Multi-Family Investment Analysis
Understanding key investment metrics helps you evaluate multi-family deals and compare properties objectively.
Gross Rent Multiplier (GRM)
Purchase Price ÷ Annual Rent
Lower is better. Quick comparison tool for similar properties in the same market.
Cap Rate
NOI ÷ Purchase Price
Higher = better return. Measures property return independent of financing. Target varies by market.
Cash-on-Cash Return
Annual Cash Flow ÷ Cash Invested
Measures actual return on your invested capital. Target 8-12% for strong deals.
Debt Service Coverage Ratio
NOI ÷ Debt Service
Lenders require 1.2+ DSCR. Higher ratio means more income cushion above mortgage payments.
Multi-Family Financing Requirements
Requirements vary significantly based on loan type and occupancy. Here is a comparison of the most common multi-family financing options.
FHA (Owner-Occupied)
- Down Payment: 3.5%
- Credit Score: 580+
- DTI / DSCR: 43-50%
Owner-occupied
VA (Owner-Occupied)
- Down Payment: 0%
- Credit Score: 620+
- DTI / DSCR: 41%
Owner-occupied
Conventional (Owner-Occ)
- Down Payment: 5-15%
- Credit Score: 680+
- DTI / DSCR: 45%
Owner-occupied
Conventional (Investment)
- Down Payment: 25%
- Credit Score: 680+
- DTI / DSCR: 45%
Investment property
DSCR (Investment)
- Down Payment: 20-25%
- Credit Score: 660+
- DTI / DSCR: N/A
Investment property
5+ Commercial
- Down Payment: 20-30%
- Credit Score: Varies
- DTI / DSCR: 1.20-1.25 DSCR min
Commercial multifamily
Loan Programs for Every Need
We offer a comprehensive range of mortgage products. The right loan depends on your situation, goals, and financial profile — and we'll help you find the perfect fit.
DSCR Loans
Best for: investors qualifying by rental income.
How it works: Approval is based on property cash flow, not personal income.
Key features:
- No personal income docs
- 620+ credit, 20–25% down
- Unlimited properties
Conventional Investment Loans
Best for: strong W-2 investors.
How it works: You qualify using personal income, credit, and assets.
Key features:
- Lowest rates
- 620+ credit (700+ ideal)
- Up to 10 properties
Portfolio Loans Options
Best for: complex or large portfolios.
How it works: Lender creates a custom loan outside standard guidelines.
Key features:
- Flexible underwriting
- Finance 10+ properties
- Relationship-based
Fix & Flip (Bridge Loans)
Best for: renovate-and-sell investors.
How it works: Short-term loan for purchase and rehab, repaid at sale or refi.
Key features:
- Fast closings (7–14 days)
- Based on ARV
- Covers purchase + rehab
Cash-Out Refinance (Investors)
Best for: pulling equity to reinvest.
How it works: Refinance and extract cash from existing property value.
Key features:
- Access up to 75–80% value
- Use funds for any purpose
- DSCR or conventional options
Blanket Loans
Best for: multiple properties.
How it works: One loan covers several properties under one payment.
Key features:
- One loan, one payment
- Finance 5+ properties
- Portfolio consolidation
Short-Term Rental Loans
Best for: Airbnb/VRBO investors.
How it works: Qualify using projected or actual short-term rental income.
Key features:
- DSCR-based
- 20–25% down
- Uses STR income data
Bank Statement Loans
Best for: self-employed borrowers without traditional income docs.
How it works: You qualify using 12–24 months of bank deposits instead of tax returns.
Key features:
- No W-2s or tax returns
- Personal or business statements
- 620+ credit typical
- 10–20% down
Multi-Family Loan Questions, Answered
Everything you need to know about multi-family financing. Can't find your answer? Reach out and we'll help.
15+
Years Experience
23
Day Avg Close
1500+
Happy Clients
Ready to Invest in Multi-Family?
Multi-family properties accelerate your path to passive income. Let's explore your financing options.
Related Resources
Ready to Take the First Step?
Whether you're ready to apply or just have questions, we're here. No pressure, no obligation — just real answers from real people who want to help.
Get Pre-Approved
Start your application in minutes. We'll get back to you within 24 hours with your options
Begin Pre-ApprovalTalk to a Loan Officer
Prefer to talk first? Schedule a call at a time that works for you — or give us a ring right now.