# What Is Multifamily & Commercial Financing? | KREC

*Multifamily and commercial financing funds income-producing property based on net operating income. See how DSCR, rent rolls, and KREC's commercial loan terms work.*

## What is multifamily and commercial financing?

Multifamily financing funds apartment and multi-unit residential buildings, typically five units or more, while commercial financing covers retail, office, industrial, mixed-use, and hospitality assets. KREC finances both from $500K to $20M on 5 to 30-year terms, with rates starting at 6.5%, up to 80% LTV, and a minimum DSCR of 1.15x.

Answered by the Key Real Estate Capital lending team · Updated August 2026

### How it works

Underwriting is income-driven. The lender reviews the rent roll, lease abstracts, and operating statements to establish net operating income, then sizes the loan against that income and the property's value. Both stabilized and transitional assets are considered, including value-add business plans.

Because commercial assets vary widely, terms depend heavily on asset type, tenancy, and location. Environmental reports may be required, and entity ownership is required on this program.

### Key considerations

- Minimum credit score is 680, and real estate investment experience is preferred.
- The property must generate income; detailed operating statements and a rent roll are required.
- Minimum DSCR is 1.15x, with leverage up to 80% LTV.
- Environmental reports may be required depending on the asset.
- Entity ownership is required.

### Who it may be for

Experienced investors acquiring or refinancing multifamily buildings of five or more units.

Owners of retail, office, industrial, or mixed-use property seeking creative structures.

Operators executing value-add plans on transitional commercial assets.

### Related KREC financing options

#### Multi-Family / Commercial

Rates from 6.5%, $500K to $20M, 5 to 30-year terms, up to 80% LTV, minimum DSCR 1.15x.

#### Rental Portfolio

For groups of one-to-four-unit rentals financed under a single blanket loan.

### Frequently asked questions

Common follow-up questions about multifamily and commercial.

#### What counts as multifamily property?

#### What DSCR is required for commercial financing?

#### What documents are needed for a commercial loan?

#### Are value-add commercial deals eligible?

#### Related questions

- [What is commercial real estate financing?](https://keyrealestatecapital.com/answers#what-is-commercial-real-estate-financing)
- [What is DSCR and why does it matter?](https://keyrealestatecapital.com/answers#what-is-dscr)
- [Private lender vs bank: which is right for an investment property?](https://keyrealestatecapital.com/answers#private-lender-vs-bank)
- [What is a rental portfolio loan?](https://keyrealestatecapital.com/answers/rental-portfolio-loans)

### Ready to talk through your deal?

Share the property and your plan, and a KREC loan specialist will outline the financing structures that fit.

Flexible, creative lending solutions to help real estate investors scale their portfolios.

NMLS ID: #2676974

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## Frequently Asked Questions

### What counts as multifamily property?

Multifamily generally means residential buildings with five or more units. Two-to-four-unit properties are typically financed under residential rental programs.

### What DSCR is required for commercial financing?

KREC's minimum DSCR on multifamily and commercial loans is 1.15x, meaning net operating income must exceed the debt payment by at least 15%.

### What documents are needed for a commercial loan?

A rent roll, lease abstracts, and detailed operating statements, along with entity documentation. Environmental reports may be required depending on the asset type.

### Are value-add commercial deals eligible?

Yes. KREC considers both stabilized and transitional assets, including value-add opportunities, for experienced investors.

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