How Does a Multifamily Loan Work?

You found an apartment building and the numbers look good. Now you need a loan. I hear this a lot from folks moving up from houses.

The big change is the lender cares more about the building than about you. They'll go through the rent roll, which lists every unit and what it pays. They'll want the seller's operating statements to see what it really costs to run. Then they'll check that the income left after expenses covers the loan payment with room to spare. That's DSCR, the debt service coverage ratio.

You still matter. They'll ask what you've owned before and how much cash you're bringing.

So get the rent roll and operating numbers before you call. If units are empty or it needs work, say so up front. That changes which lender fits.

SixtyFour West places your deal with lenders whose rules it fits.

Apply with SixtyFour West