Multifamily Loans (5+ Units)
Overview
Multifamily loans are designed for investors acquiring or refinancing residential properties with 5 or more units. Whether you’re purchasing a stabilized 8-unit apartment building, executing a value-add on a 24-unit complex, or scaling into 100+ unit communities, OpenLane Funding provides access to bridge, permanent, and agency financing options across our lender network.
Who This Is For
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Investors acquiring stabilized multifamily properties for cash flow
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Value-add operators looking to renovate and increase rents on underperforming assets
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Syndicators and fund managers raising capital for multifamily deals
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Owners looking to refinance out of bridge debt into permanent long-term financing
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Developers converting properties to multifamily use
Loan Specifications
Specification
Details
Rates
6.5% – 12% (varies by unit count, stabilization status, bridge vs. permanent)
LTV / LTC
Up to 75–80% LTV (stabilized); up to 80–85% LTC (value-add/bridge)
Min Credit Score
600–700 typical
Loan Amounts
$75,000 – $25,000,000+
Term Options
Bridge: 12–36 months | Permanent: 5–30 year terms
Closing Timeline
21–45 days
Property Types
5–24 units (small balance multifamily); 25+ units (commercial multifamily)
Income Docs
Property-level financials (rent roll, T-12, operating statements); personal financial statement
Entity Vesting
LLC, LP, corporation — entity required for most programs
How It Works
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Submit Your Deal — Provide the property address, unit count, current rent roll, operating expenses (T-12 or trailing financials), and your business plan (acquisition, value-add, refinance).
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Deal Analysis — We analyze the property’s net operating income (NOI), DSCR, occupancy, and cap rate to determine the optimal loan structure and lender fit.
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Lender Matching — We present 2–3 options from our lender network: bridge for value-add plays, permanent for stabilized assets, or a combination strategy.
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Underwriting & Due Diligence — The lender orders a commercial appraisal, environmental report (Phase I), and property condition report. Underwriting reviews all financials.
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Close & Fund — Closing typically takes 21–45 days depending on complexity. Bridge loans close faster; permanent/agency loans require more due diligence.
Key Benefits
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Financing available from 5-unit buildings to 100+ unit complexes — no deal too small or too large
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Bridge loans for value-add plays with interest-only payments during the renovation period
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Permanent financing with 30-year amortization and fixed-rate options for stabilized assets
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Non-recourse options available for larger, stabilized deals
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One-stop shop: we handle the bridge loan now and the permanent refinance when you’re ready
Common Questions
Q: What’s the difference between small balance and commercial multifamily?
Small balance multifamily typically refers to properties with 5–24 units and loan amounts under $5 million. These are underwritten more like residential investment properties. Commercial multifamily (25+ units) involves more extensive due diligence—Phase I environmental, property condition reports, and detailed operating statement analysis. Both are available through OpenLane Funding.
Q: Can I finance a value-add multifamily deal?
Yes. Bridge loans are specifically designed for value-add plays. You acquire the property, renovate units, increase rents, stabilize the asset, and then refinance into permanent debt. We’ll structure the bridge to include renovation hold-backs so you have capital for the improvements.
Q: Do I need multifamily experience?
Most lenders want to see some real estate investment experience, though not necessarily multifamily-specific. If you’re transitioning from single-family investing, having a strong property management partner and a clear business plan will strengthen your application. First-time multifamily investors can qualify with the right team and deal.
Ready to get started? Submit your deal for a fast quote.