3 Things To Consider When Applying For A Multifamily Apartment Loan

1. Net Worth 

As a general rule the borrower must have the net worth equal to the principal of the loan.  This is especially true with agency debt but local banks may be more flexible.

2. Liquidity

Generally the borrower(s) will need to have combined liquid assets around 10% of the principal or 9 months to a year of debt service.

3. Experience

Some local banks or agency debt products will want to see that team the borrowing team has plenty of experience in other multifamily assets.  A property manager that is local will sometimes help meet this objective.