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Apartment/Unit Loans

There are many different types of apartment loans based on number of units in the project. Fannie Mae and Freddie Mac provide conforming financing on apartments up to 4 units. Projects containing 5 or more units will require financing from lenders that specialize in apartment financing.

California Mortgage Advisors Inc. offers financing on all sizes of apartment buildings from 2 to 100+ units.

California Mortgage Advisors Inc. has been helping customers finance apartment loans for over 20 years. When it comes to defining an apartment or an apartment complex, most people have a unique definition. This includes borrowers, lenders and governmental regulatory agencies. Luckily, at CMA, we have years of experience providing loans for apartments of all shapes and sizes. Our Mortgage Advisors can assist you in selecting the best loan to meet your financial goals for investment property. Our Mortgage Advisors are available at (800) 927-6560 to answer your questions or click here to apply online.

Small Multifamily Apartment Loans (four or fewer units)

For loan purposes, a small multifamily apartment is anything that has four or fewer family units. While the number four may seem arbitrary, it is significant based on the way that federal regulatory agencies classify property types. Anything with four or fewer family units is considered a residential property for loan purposes, while any property with more than four family units is considered a commercial property.

Obtaining a loan for an apartment unit classified as a residential property follows the same guidelines for obtaining a traditional residential mortgage. This makes obtaining a loan for a small apartment unit relatively simple, at least when compared to the complex nature of a commercial apartment loan. Loans for commercial apartment buildings are not complex per se, but they do follow some rigid guidelines. However, CMA Mortgage Advisors are experienced in handling all of the details of both loan types and can help borrowers decide if a particular loan is right for them.

Large Apartment Loans (five or more units)

The application and approval process for a large apartment loan is different from other traditional types of loan because the loan itself lacks the backing of Fannie Mae or Freddie Mac. This means that the lender is assuming a great deal more risk with this type of loan than they would be with a traditional residential loan. At CMA, we mitigate this risk by asking borrowers for all the necessary documents as required by a commercial lender.

Building Condition

Building condition is a major factor when determining whether a particular apartment building will qualify for a loan. A loan to purchase a poor condition building is seen as a riskier option when compared to a loan to purchase a relatively new building.


Debt Service Coverage Ratio is an industry term used to describe how much money a particular apartment building generates per month in relation to the properties monthly loan payment. One of the advantages of buying a large apartment building is that documentation proving the debt service coverage ratio of an individual building is usually comprehensive and readily available. Several years of tangible data go a long way towards demonstrating a potential borrower’s ability to repay a specific loan.

At CMA, when considering the viability of a commercial loan, emphasis is placed on building condition and debt coverage ratio. Our Mortgage Advisors will work with borrowers to determine whether a particular ratio is acceptable for their individual loan.


Financial liquidity is a property owners’ best defense against unexpected expenses and complications. There is no make or break point when it comes to overall liquidity levels, however, there are minimum liquidity levels that must be met in order to qualify for a commercial loan.

At California Mortgage Advisors Inc., we genuinely believe that we offer our customers the best mortgages in the industry. We have offered a variety of loans since 1993, which means our Mortgage Advisors have successfully matched tens of thousands of borrowers with loans tailored to meet their needs and unique financial situations. Our Mortgage Advisors are available at (800) 927-6560 to answer your questions or you can apply here online.