Common challenges
The jump from 4 to 5 units moves you from residential to commercial underwriting, with different documents, appraisals and terms.
Programs that fit
Multifamily Loans (5+ Units)
A multifamily loan finances apartment buildings with five or more units and is underwritten as a commercial loan on the property’s net operating income (NOI).
DSCR Loans
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).
Portfolio & Blanket Loans
A blanket (portfolio) loan finances several investment properties under one note, one closing and one monthly payment, with release clauses that let you sell individual properties.
Bridge Loans
A bridge loan is short-term (usually 6–24 months) investor financing secured by real estate that “bridges” you from a purchase to a sale or long-term refinance.
Tips before you apply
- Have a trailing 12-month operating statement ready.
- Underwrite with realistic vacancy and expense assumptions.
FAQ
What is the best mortgage for multifamily investors?
It depends on your documentation and goal. The programs that most often fit are Multifamily Loans (5+ Units), DSCR Loans, Portfolio & Blanket Loans, Bridge Loans.