For larger loans, your net worth often needs to equal at least 100% of the loan amount , with liquid cash reserves (post-closing) of at least 10% of the loan amount . Primary Financing Options Buying Your First Apartment Complex: An Investor Guide
Lenders require the property's Net Operating Income (NOI) to exceed the annual debt service. Most expect a DSCR of 1.25x or higher . how to get a loan to buy an apartment complex
Many lenders, especially "Agency" lenders like Fannie Mae and Freddie Mac, prefer borrowers with at least 2 years of multifamily management experience . For larger loans, your net worth often needs
A minimum score of 660–680 is typically required to secure favorable terms. Many lenders, especially "Agency" lenders like Fannie Mae
To qualify for most commercial multifamily loans, you will generally need to meet these criteria:
Typically ranges from 20% to 30% . Some specialized programs, like HUD/FHA , may allow up to 85-87% leverage (down payment as low as 13-15%).
Getting a loan for an apartment complex (multifamily real estate with 5+ units) is fundamentally different from a standard home mortgage. In 2026, lenders prioritize the over your personal income, often requiring a detailed analysis of the building's financial performance. Core Loan Requirements for 2026