Multifamily is the backbone of NYC commercial real estate, and it's the property type lenders are most comfortable with — apartment income is durable and straightforward to underwrite. But New York adds wrinkles that change how a deal pencils.
How lenders size an apartment loan
It starts with net operating income — rents minus operating expenses — run through the same three ratios as any commercial loan: LTV (often 65–75%), DSCR (typically 1.25x or more), and debt yield. Because apartment income is steady, multifamily often earns the best rates and highest leverage of any commercial property type.
Rent regulation matters
A building's mix of rent-stabilized and free-market units directly affects its income — and its value. Stabilized rents grow slowly under Rent Guidelines Board limits, so a heavily regulated building underwrites on lower, more predictable income; lenders will want a rent roll that flags each unit's status.
It isn't a downside so much as different math: regulated buildings are valued for stability, market-rate for upside.
The 5-unit line and program fit
Buildings of five or more units are financed as commercial multifamily, and options widen with size. Smaller buildings may fit conventional bank loans; larger stabilized properties can tap agency programs (Fannie Mae and Freddie Mac multifamily) offering long, non-recourse, fixed-rate debt. Value-add or lease-up plays often start with a bridge loan and refinance once stabilized.
Note: SBA real-estate loans require owner-occupancy, so a pure rental apartment building doesn't qualify — that's conventional or agency territory.
Compare lenders that know NYC multifamily
Underwriting apartment deals here is a specialty — regulation, the recording tax, and local operating costs all matter. Compare multifamily lenders in your borough and get matched to ones that fit your building.