Multifamily financing for apartment properties with five or more units starts with property cash flow, condition and the ownership plan. Stonehaven is a mortgage brokerage that evaluates potential agency, bank and bridge financing through third-party lenders. The property matters, but so do the borrower’s experience, financial capacity and required guarantees. For a 1–4 unit rental, explore DSCR loan options.
What makes an apartment property ready for financing?
A full building is not automatically a stabilized loan file. The lender needs support for collected rent, recurring expenses and the cash flow that can service the proposed debt. A current rent roll should reconcile with the operating statement, with concessions, delinquencies and vacant units identified.
Income and occupancy
Prepare the current rent roll, trailing operating statements, recent collections and lease expirations. Distinguish physical occupancy from rent actually collected.
Condition and capital needs
Identify deferred maintenance, planned unit renovations, major systems and required reserves. Repair escrows and costs outside the loan affect cash needed.
Property and program fit
Disclose commercial space, student or short-term occupancy, affordability restrictions and other special uses. These can change the available programs.
Borrower and management
Provide relevant ownership experience, the property manager, ownership structure and available liquidity. A property-based analysis does not remove borrower documentation.
Agency, bank or bridge: choose around the business plan
- Agency financing: Fannie Mae and Freddie Mac programs have property, sponsor, occupancy and documentation requirements. A stabilized apartment acquisition or refinance may be a candidate, subject to the specific program and lender.
- Bank or credit union financing: compare the lender’s property criteria, relationship requirements, maturity, amortization, covenants and guarantees. A bank loan is not defined solely by a smaller loan amount.
- Bridge financing: a defined renovation or lease-up plan may fit a transitional structure. Establish the scope, reserves, milestones and a supportable sale or refinance exit before relying on future rent growth.
Freddie Mac's borrower overview describes financing for properties with five or more dwelling units through its lender network. Eligibility and execution are lender decisions; this page does not imply that Stonehaven is an agency-approved lender.
How NOI sets the loan, and why the rent roll is not enough
Net operating income is property income after operating expenses, before mortgage debt service. A lender may adjust taxes, insurance, management, vacancy and reserves. Compare the debt-service coverage limit with the value-based limit and any minimum debt yield. The lowest applicable limit can control proceeds even if the purchase price or appraisal is higher.
The commercial loan calculator provides an initial DSCR and LTV comparison. Use the worked loan-sizing guide to understand the limits and check additional lender requirements separately.
Does nonrecourse mean no personal obligations?
No. A nonrecourse structure can still include guaranties for specified exceptions, as well as other obligations in the loan documents. Recourse, completion support and environmental obligations need to be reviewed for the actual financing. Do not treat “agency,” “bank” or “bridge” as a guarantee of one liability structure.
Fannie Mae's fixed-rate term sheet describes nonrecourse availability with required carve-outs. That distinction is why the final loan and guaranty documents matter.
Buying, improving or approaching maturity?
For an acquisition, reconcile the contract, loan request, closing costs and equity. For a value-add plan, budget the renovation and carrying costs while units are unavailable. For a refinance, compare supported proceeds with the full payoff and costs, not just the principal balance. A construction or bridge exit is a new underwriting decision unless a contractual conversion provides otherwise.
Send a useful first package
Share the address and unit count, rent roll, trailing operating statement, purchase contract or current debt and maturity, requested amount, project budget, sponsor summary and target closing date. We can then identify the assumptions and missing information that matter for a preliminary lender discussion.
Updated September 18, 2026