Multifamily Loans for California Real Estate Investors

Whether you’re buying a duplex or a 50-unit apartment building, multifamily financing works best when the lender looks at what the property earns, not just what’s on your tax returns. That’s how private lenders approach it, and it’s why they can move faster than banks on the deals that matter.

Seth Swenson Mortgage Capital arranges multifamily loans from $500,000 to $15 million, with long-term financing for stabilized buildings and short-term bridge loans for properties that need work.

Talk to Seth: (415) 860-7384

Loan Terms at a Glance

Rates and terms are subject to change and depend on the property, borrower and lender approval. Loans are for business purposes and investment properties only.

Two Ways to Finance a Multifamily Property

Long-term financing for stable buildings

If the building is leased up and producing steady income, a long-term loan locks in your financing for years. Choose a 30-year fixed rate, a 5- or 10-year term, or an interest-only structure to maximize cash flow.

Bridge loans for value-add projects

If the building has vacancies, below-market rents or deferred maintenance, a 12 to 24 month bridge loan lets you buy it, fund the renovation and raise rents. Once the property is stabilized, you refinance into long-term financing at the higher value.

How Qualification Works

Multifamily loans are qualified on the property’s income using the debt service coverage ratio (DSCR). DSCR compares the building’s net operating income, meaning rent minus operating expenses, to the annual loan payments. Lenders look for a DSCR of 1.25 or higher, which means the building earns at least 25% more than it needs to cover the mortgage.

Example: How the Numbers Work

Say you’re buying a 12-unit building for $3,000,000.

• Loan at 70% LTV: $2,100,000
• Down payment: $900,000
• Net operating income: $210,000 per year
• Annual loan payments: about $160,000
• DSCR: $210,000 ÷ $160,000 = 1.31

At 1.31, the building’s income comfortably clears the 1.25 minimum, so it qualifies on its own numbers.

Figures are illustrative only. Actual payments depend on the rate, loan structure, operating expenses and lender approval.

Estimate your numbers with our Loan Calculator →

Who This Loan Is For

• Investors moving up from single-family rentals to duplexes, fourplexes and apartment buildings
• Value-add buyers who want to renovate units and raise rents
• Owners refinancing a stabilized building to pull out equity or lower their rate
• Investors who need to close faster than a bank or agency lender can

Why Work with Seth Swenson Mortgage Capital

Seth has worked in private money lending since 2003, including more than 25 years living and working in the San Francisco Bay Area. As a licensed California broker with access to over 50 private lenders, he matches each building with the right structure, whether that’s a long-term loan, a bridge loan, or a plan that uses both.

Frequently Asked Questions

Do you finance 2 to 4 unit properties?

Yes. There’s no minimum unit count beyond two and no maximum, from duplexes to large apartment complexes. For single-family rentals, see our DSCR Rental Property Loans.

Do I have to close in an LLC?

Yes. Multifamily loans require the property to be held in an LLC or similar business entity.

What DSCR does the property need?

Lenders look for a DSCR of 1.25 or higher. If a building falls short today because of vacancies or low rents, a bridge loan can finance the improvements until it qualifies for long-term financing.

Can I finance renovations?

Yes. Renovation funds are available for value-add projects, typically through a bridge loan that is refinanced once the building is stabilized.

What are the loan limits?

Loans range from $500,000 to $15,000,000, with up to 70% loan-to-value on purchases and 65% on refinances.

Do you finance commercial buildings too?

Yes. For office, retail and industrial properties, see our Commercial Property Loans.

Ready to Finance Your Building?

Call Seth at (415) 860-7384 or send a message with the property address, number of units, purchase price or current value, and the current rent roll. He’ll tell you quickly which loan fits.