Scale your portfolio.
Agency-alternative financing for 5–50 unit apartment buildings. DSCR-qualified programs available. We work with experienced operators and first-time multifamily buyers with strong single-family track records.
The gap between residential and institutional
Five units is where residential financing ends — conventional and standard DSCR programs stop at four. But a 12-unit building is too small for the agency multifamily desks that chase $10M+ deals. Small-balance multifamily lenders exist precisely for this gap: 5–50 units, loan sizes up to $5M, underwritten on the building’s net operating income.
Qualification centers on the property’s DSCR — its NOI against the proposed debt service — alongside your credit and liquidity. Tax-return-light programs are available here just as they are in residential DSCR, and non-recourse structures (where the property alone secures the loan, with standard carve-outs) are on the table for stronger deals.
Stepping up from single-family
You don’t need a multifamily track record to buy your first apartment building. Lenders in this space will credit a strong single-family rental history, especially paired with experienced property management. We’ve placed first-time multifamily buyers whose portfolios proved they could operate — the building’s numbers did the rest.
Both stabilized and value-add deals are financeable: stabilized assets price best on long-term fixed structures, while value-add plays often start with a bridge loan through renovation and lease-up, then refinance into permanent debt. Interest-only periods are available where the business plan needs early cash flow.
Multifamily Loans: common questions
How is a 5+ unit building financed differently from a fourplex?
At five units the loan becomes commercial: underwritten on the building’s net operating income and DSCR rather than residential comps, typically closed in an LLC, with terms quoted deal-by-deal instead of off a rate sheet. Down payments generally start around 20–25%.
Can I buy my first multifamily building without prior experience?
Yes — lenders will credit a solid single-family rental track record, and pairing the deal with a professional property manager strengthens the file further. First deals get more scrutiny on liquidity and the building’s existing operations.
What does non-recourse mean on a multifamily loan?
The property alone secures the debt — the lender can’t pursue your other assets if the deal fails, except under standard “bad-boy” carve-outs like fraud or misappropriation. It’s available on stronger small-balance deals and is a meaningful risk-management tool as your portfolio grows.
What loan sizes do small-balance multifamily programs cover?
Roughly $500K to $5M in our pool, covering most 5–50 unit buildings outside the priciest metros. Above that range, agency and CMBS execution starts to make sense and we’ll point you to it honestly.
Send us the scenario. We'll tell you if Multifamily is the right fit — and what it prices at.
No SSN, no credit pull. A licensed broker reviews the scenario and replies by the next business day.
Program features described above are general descriptions of loan programs offered by third-party lenders and are subject to change without notice. This is not an offer of credit or a commitment to lend. All loans are subject to credit approval, income and asset verification, property appraisal, and program eligibility requirements. Not all applicants will qualify. Verified Home LLC is a mortgage broker, not a lender, and arranges loans with third-party providers. NMLS #2693996. Equal Housing Opportunity.