You own two, three or more apartment buildings, and each one has its own loan, its own maturity date and its own lender rules. A portfolio loan puts them on one plan.
In short: A multifamily portfolio loan finances several 5+ unit buildings under one loan or a coordinated set of loans, sized on the combined net operating income (NOI) of the group. Portfolio programs typically lend up to 75% of aggregate value. Stronger buildings can carry a weaker one, which often makes the whole group easier to finance than each building alone. LendingStreet finances investment property only, from roughly $150K to $20M.
It is one financing package that covers more than one apartment property. Sometimes that is a single blanket loan with every building as collateral. Sometimes it is several loans closed together with one lender and matching terms.
Either way, the goal is the same. You get one underwriting process, one set of documents and one payment schedule you can plan around, instead of juggling separate deals that mature at different times.
Buildings with five or more units are underwritten on NOI. That is gross rent, minus vacancy, minus operating expenses like taxes, insurance, repairs, utilities and management. Debt service is then compared to that NOI.
On a portfolio, the underwriter adds up NOI across every building and compares it to the total debt. A building with soft occupancy can still fit if the others produce enough surplus. Some programs also check each building on its own, so ask how your file will be reviewed.
This example is illustrative only. An investor owns a 6-unit, an 8-unit and a 12-unit building, with total estimated value of $3.9 million and combined NOI of $273,000.
At 75% aggregate LTV, the maximum loan by value is $2,925,000. A loan of $2.9 million at an illustrative 6.5% rate on 30-year amortization costs about $219,960 a year. That produces a combined coverage ratio of about 1.24x.
| Building | Est. value | Annual NOI |
|---|---|---|
| 6 units | $900,000 | $63,000 |
| 8 units | $1,200,000 | $84,000 |
| 12 units | $1,800,000 | $126,000 |
| Total | $3,900,000 | $273,000 |
A single blanket loan keeps everything in one note. That is simple to manage, but selling one building usually requires a release clause and a paydown, often above that building’s share of the loan.
Separate loans with the same lender give you more freedom to sell or refinance one property later. Some programs also cap how many properties fit in one loan, so larger groups often close as several loans anyway. Your loan officer can show you both structures side by side.
It fits best when you plan to hold the buildings for years and want one maturity date to manage. It also helps when you are consolidating short-term debt or pulling equity out of several properties at once.
It fits less well if you expect to sell one building soon or if one property needs heavy renovation first. In that case, a bridge loan on the project building and permanent debt on the rest may work better.
Send us the property list, rent rolls and current loan balances. Our financing team draws on relationships across 30+ capital sources and typically brings back 2–3 options, often within 48 hours.
Each option shows loan size, structure, release terms and estimated cash to close or cash out. You choose the one that fits your hold plan.
Often yes, though it depends on the program. Some sources prefer properties in a limited number of states, while others finance nationwide. We finance in all 50 states and will tell you up front how your mix of locations affects the options.
Many blanket programs start at five properties. With larger apartment buildings, two or three properties can still be financed together as coordinated loans. The loan size and combined NOI matter more than the property count.
Not always. Many programs look at combined NOI against combined debt service, so strong buildings can offset a weaker one. Some also apply a minimum test per building, which varies by program.
Yes, if the loan has a release clause. You typically pay down a set release amount, often more than that building’s pro rata share. Ask for the release terms before you sign.
A blanket loan is one way to build a portfolio loan, using one note secured by every property. A portfolio can also be financed as several separate loans with one lender. The right choice depends on how long you plan to hold each building.
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Properties with 5+ units are commercial by definition, so they fall outside Fannie/Freddie residential programs. But at 5-20 units the loan is usually too small for institutional multifamily desks, whose minimums and timelines are built for 50+ unit assets. The result is a financing gap: too big for residential, too small for institutional.
Through DSCR-based and bridge capital sources that underwrite to the property's net operating income rather than agency checklists. Typical structures: purchase or refinance at up to 75% LTV, 5-20 units, $200K-$20M, with bridge-to-perm available for value-add and lease-up plays.
Stabilized small multifamily DSCR loans typically close in 14-21 days. Bridge structures for value-add acquisitions can close in 5-10 days, then refinance into permanent DSCR financing after stabilization.
No. These programs underwrite the property's income (NOI / DSCR), not your tax returns. LLC borrowers are standard, and there is no W2 requirement.
Mixed-use with a residential majority (for example, apartments over retail) can be placed through commercial and mixed-use capital sources through the same LendingStreet application, with custom terms up to $5M+.