Multifamily Financing in Southern California

Multifamily real estate remains one of the strongest performing asset classes in Southern California. At Commercial Capital Partners, we help investors and owner-occupants secure competitive financing for apartment buildings and multifamily properties across the Inland Empire, Los Angeles, and greater SoCal. From small 2–4 unit properties to larger apartment complexes, we structure loans that support your investment strategy.

Multifamily Loan Programs

Conventional Multifamily Loans

Conventional commercial loans are available for 5+ unit apartment buildings and are typically structured with 20–30% down, amortization periods of 25–30 years, and interest rates tied to market indices. These loans can be used for purchases, refinances, and cash-out refinances. Terms and rates vary based on property performance, location, and borrower strength.

Agency Loans (Fannie Mae / Freddie Mac)

Agency financing through Fannie Mae and Freddie Mac offers attractive long-term fixed rates and high leverage for stabilized multifamily properties. These programs are ideal for larger apartment communities with strong occupancy and rent rolls. We work with agency-approved lenders to structure these transactions for qualified borrowers.

Bridge Loans for Multifamily

Bridge financing provides short-term capital to acquire or reposition multifamily assets before stabilization. This is useful for value-add investors purchasing properties that need renovation or lease-up before qualifying for permanent agency or conventional financing.

What We Finance

  • 2–4 unit residential investment properties
  • 5+ unit apartment buildings and complexes
  • Value-add multifamily acquisitions
  • Multifamily refinances and cash-out refinances
  • Mixed-use properties with residential components
  • 1031 exchange replacement properties

Recent Multifamily Deals Closed

  • $1,500,000 conventional loan. Purchase of multifamily property in Pasadena, CA

Southern California Multifamily Market

Southern California’s multifamily market is characterized by high demand, low vacancy, and strong rent growth, particularly in the Inland Empire, where population growth and affordability relative to coastal markets continue to drive investment activity. Whether you are acquiring your first apartment building or refinancing an existing portfolio, we bring the lender relationships and market knowledge to get your deal done.

Talk to a Multifamily Financing Advisor

Call us at (909) 721-5915 or contact us online to discuss your multifamily financing needs. We serve the Inland Empire, Los Angeles County, Orange County, and all of Southern California.

Multifamily Financing: Apartment Building Loans for 5+ Units

Multifamily real estate is one of the most actively financed asset classes in the commercial lending market, and for good reason. Apartment buildings provide consistent rental income, benefit from strong nationwide housing demand, and offer investors a path to long-term wealth through property appreciation and debt paydown. At Commercial Capital Partners, we structure and place multifamily loans for 5-unit to 100-plus-unit properties throughout the Inland Empire, Southern California, and nationally.

What Qualifies as Multifamily Commercial Property?

For commercial lending purposes, multifamily begins at five units. Buildings with two to four units are typically financed through residential loan programs and Fannie/Freddie guidelines. At five units and above, the property is underwritten as a commercial asset, which means lenders evaluate the net operating income, the rent roll, vacancy rates, and operating expenses rather than just the borrower’s personal income and credit score.

Multifamily Loan Programs

  • Conventional bank loans: Regional and national banks offer portfolio multifamily loans with 5, 7, 10, and 15-year fixed rate terms. Ideal for stabilized properties with strong in-place income. LTVs up to 70%–75%, DSCR minimum 1.20x–1.25x.
  • Fannie Mae and Freddie Mac (Agency): Non-recourse multifamily loans for stabilized properties of 5+ units. Competitive fixed rates, long amortization up to 30 years, interest-only options, and nationwide availability. Typically requires 80%+ occupancy for 90 days prior to application.
  • Bridge loans: Short-term financing (12–36 months) for value-add properties in lease-up, renovation, or repositioning scenarios. Higher rates but faster close and less restrictive underwriting.
  • HUD/FHA 223(f) and 221(d)(4): Long-term, non-recourse multifamily loans backed by HUD. Very low rates and long amortization (up to 35 years for acquisitions, 40 years for new construction). Best for large stabilized properties or new construction.
  • Debt Service Coverage Ratio (DSCR) loans: Non-QM loans underwritten entirely on property income, with no personal income verification. Popular for individual investors acquiring 5–20 unit buildings.

Underwriting Multifamily Loans

Multifamily underwriting begins with the rent roll — the schedule of current tenants, lease terms, and rent amounts. Lenders calculate gross potential rent (all units at market rent), apply a vacancy and credit loss factor (typically 5%–10%), add other income (laundry, parking, fees), and subtract operating expenses to arrive at the net operating income (NOI). NOI divided by annual debt service equals the DSCR, which must meet the lender’s minimum.

Additional factors include the property’s physical condition, deferred maintenance, market vacancy trends, and the borrower’s experience managing multifamily properties. Lenders also review the borrower’s global financial position — liquid reserves, total net worth, and any other debt obligations.

Inland Empire Multifamily Market

The Inland Empire remains one of the most supply-constrained multifamily markets in Southern California. Population growth driven by housing affordability relative to Los Angeles and Orange County continues to push demand for rental units, particularly in the Rancho Cucamonga, Ontario, and Riverside corridors. Occupancy rates have stayed consistently above 95% in most submarkets, and rent growth has outpaced the national average over the past five years. For investors, this translates to strong income stability and favorable refinance conditions as properties appreciate.

Recent Multifamily Deals Closed

  • $4,200,000 agency loan. 24-unit apartment building acquisition, Riverside, CA
  • $1,850,000 bridge loan. 12-unit value-add property, transitioning from monthly to annual leases, Fontana, CA
  • $3,600,000 refinance. Conventional cash-out on a 30-unit stabilized building, San Bernardino, CA

Get Multifamily Financing

Whether you are acquiring your first apartment building or expanding an existing multifamily portfolio, our team has the lender relationships and structuring expertise to find the right loan at the right terms. We work with investors at every level — from 5-unit first-time investors to experienced operators with 500+ units. Call us at (909) 721-5915 or submit a pre-qualification to get started.