Multifamily Loans Across the Northeast & Nationwide. Bridge, Value-Add & Agency Financing.
Blue Sky Capital Advisors arranges multifamily financing across the entire capital stack — from Freddie Mac Conventional Small on stabilized acquisitions to $50M+ Fannie Mae DUS, FHA/HUD, CMBS conduit, and private institutional bridge capital. 100+ lender network. No tax returns on most programs. Whether you're buying your first 4-family or refinancing a 200-unit portfolio, we have a program that fits.
- Industry experience
- 31+ years
- Nationwide coverage
- 50 states
- Lender network
- 100+
Real Multifamily Deals. Real Capital Solutions.
Every multifamily transaction on the Blue Sky record — from the $5,550,000 Newark bridge closing down to the $975,000 4-family in Jersey City. See the commercial and owner-occupied work on the closed transactions page.
Bridge loan on a 20-unit Newark multifamily property, closed May 2026 — 12-month term, interest-only, 65% LTV, placed with a non-bank private credit fund. The borrower needed to pay off a construction loan on a timeline agency underwriting wouldn't support, so the bridge bought 12 months to season the property to stabilization and present a clean package for an agency permanent takeout.
Freddie Mac small balance loan execution on a New Jersey multifamily property. Long-term fixed rate, 30-year amortization, non-recourse on the agency program. Demonstrates the agency capital advantage on stabilized middle-market multifamily.
Bridge loan arranged for the acquisition and renovation of a 5-unit multifamily property in North Palm Beach, closed June 2025. The first leg of the bridge-to-agency path: short-term capital funds the reposition, with permanent placement structured once the property stabilizes.
Freddie Mac execution arranged and placed on a nine-unit multifamily building at 105 Lehigh Ave in Paterson, closed September 2025. Agency capital on stabilized small-balance Passaic County stock — the middle-market walk-up lane this market runs on.
Refinance of a six-unit multifamily building at 191 W Broadway in Paterson, closed May 2026. Private credit execution on a 30-year term. Another Paterson closing squarely in the $1–5M small-balance lane this market runs on — arranged and placed across the Blue Sky lender network.
Four-family investment property financing in Jersey City. Small balance multifamily execution demonstrating Blue Sky's range — from $975K small multifamily through $50M+ institutional with the same advisor relationship.
Permanent term loan refinancing the original $510,000 bridge loan from September 2023. 30-year fixed on a stabilized 4-unit rental property. The bridge-to-perm progression illustrates the value-add lifecycle in action.
Initial bridge loan that enabled the Madeira Beach 4-unit rental acquisition in September 2023. Held during stabilization and refinanced into the $750,000 permanent term loan eight months later. Same property, two separate Blue Sky executions.
How much can you borrow on your building?
Two tests decide every multifamily loan — debt coverage and leverage. Enter your building's numbers and see both, side by side, with the one that binds named. Then see how a bank and a private credit desk would each size the same building.
Every Multifamily Capital Source. One Advisor.
The right multifamily program depends on the property, the deal structure, the borrower, and the strategy. Agency programs offer the lowest long-term rates for stabilized properties. Banks offer flexibility on transitional or non-conforming deals. Bridge capital fills value-add gaps. Construction loans build new supply. Knowing which to use — and which lender within each category will compete hardest for your deal — is the work.
Freddie Mac Conventional Small
Stabilized multifamily $2M–$10M, 5–50 unit properties. Up to 30-year amortization, non-recourse except standard carve-outs, 5/7/10/12/15 year fixed periods.
- ✓Best long-term fixed pricing on stabilized property
- ✓Non-recourse except standard carve-outs
- ✓5–50 unit residential multifamily
- ✓Replaced Freddie's retired small-balance product in April 2026
Fannie Mae DUS
Mid-market and large multifamily, typically $3M and up in practice. Through Fannie Mae Delegated Underwriting and Servicing partners.
- ✓Competitive rates on stabilized properties
- ✓Non-recourse with bad-boy carve-outs
- ✓5/7/10/15 year fixed terms
- ✓Up to 80% LTV
FHA / HUD MAP Loans
Long-term fixed rate financing for affordable and market-rate multifamily, healthcare, and senior housing.
- ✓Up to 35-year fixed-rate terms
- ✓Up to 85% LTV
- ✓Non-recourse
- ✓Specialized affordable housing programs
DSCR Multifamily Loan
Asset-based multifamily for investors. Qualifies on rental income, not personal tax returns.
- ✓5+ unit and 2–4 unit eligible
- ✓No tax returns or W2s
- ✓Close in LLC
- ✓30-year fixed rate available
Multifamily Bridge Loan
Short-term capital for value-add acquisitions, lease-up, transitional cash flow, or pre-stabilization.
- ✓12–36 month terms
- ✓Interest-only payments
- ✓Up to 75% LTV / 80% LTC
- ✓Close in 7–30 days
Multifamily Construction Loan
Ground-up multifamily development. Construction-to-permanent and standalone construction options.
- ✓Interest-only on drawn funds
- ✓12–24 month construction term
- ✓FHA 221(d)(4) for affordable
- ✓Forward commitments available
Bank Statement Multifamily
Self-employed borrowers with strong properties but limited tax return income. Qualifies on bank deposits.
- ✓12–24 months of bank statements
- ✓Deposit-based income calculation
- ✓Up to 75% LTV
- ✓30-year amortization
Multifamily Portfolio Loan
Bundle multiple multifamily properties under one blanket mortgage. Cross-state portfolios accepted.
- ✓5+ properties
- ✓$1M – $25M aggregate
- ✓Cash-out across portfolio
- ✓Partial release clauses
Agency, Bank, or Private Credit — Side by Side.
Blue Sky arranges multifamily financing across agency, bank, and private credit execution nationwide. The comparison below covers the five executions we place most often on apartment properties, from $500,000 through $10 million and above.
The differences that decide these deals are not the ones usually cited. Speed, amortization, and term are far closer across executions than most comparisons suggest. Where the real decisions sit is recourse, prepayment structure, the $2 million agency floor, property eligibility, and the sponsor balance-sheet test.
| Freddie Conventional Small | Freddie Fixed-Rate (large balance) | Fannie Small Mortgage Loan | Community & regional bank | Private credit / debt fund | |
|---|---|---|---|---|---|
| Loan size | $2M – $10M | $10M minimum | No stated minimum; practical floor ~$2M | $1M minimum | $500K minimum |
| Units | 5 – 50 | No stated cap | 5+ | — | — |
| Term | 5, 7, 10, 12, 15 yr fixed | 5–10 yr; up to 30 yr if not purchased for securitization | 5 – 30 yr, fixed or variable | 5 yr with reset typical; 7 and 10 yr sometimes available | Bridge: 1–2 yr · Stabilized: up to 30 yr fixed |
| Amortization | Up to 30 yr | Up to 30 yr | Up to 30 yr | 25 yr common; 30 yr widely available | Bridge: interest-only |
| Max leverage | 75–80% LTV amortizing; 65–70% LTV full-term interest-only, by term | 75–80% LTV amortizing; 65–70% LTV full-term interest-only, by term | 80% LTV | 70–75% LTV | Bridge: up to 80% LTC |
| Minimum DSCR | 1.25x amortizing | 1.25x amortizing | 1.25x | 1.20–1.25x | Bridge: no test, sized to LTC with interest reserve · Stabilized: 1.10x |
| Recourse | Non-recourse except standard carve-outs | Non-recourse except standard carve-outs | Non-recourse with standard carve-outs | Full recourse standard | Non-recourse with carve-outs; completion or carry guarantee on heavier business plans |
| Prepayment | Yield maintenance until securitized, then 2-year lock-out, defeasance thereafter; step-down available at additional cost | Yield maintenance until securitized, then 2-year lock-out, defeasance thereafter | Yield maintenance or declining prepayment premium | Step-down, typically 5-4-3-2-1 | Bridge: 90-day minimum interest |
| Stabilization | Required | Required | Required | Effectively required | Not required |
| Time to close | Approximately 1–2 weeks longer than bank | Approximately 1–2 weeks longer than bank | Approximately 1–2 weeks longer than bank | Baseline | Approximately 30 days |
| What disqualifies you | Under $2M; over 50 units; student, seniors, manufactured housing, co-op; fractured or vertical condos, DSTs, HAP contracts, master or ground leases, scattered site, home-sharing, co-living, micro-units above 5%, septic or well water; hard subordinate debt; sponsor net worth below the loan amount or liquidity below roughly nine months of debt service | Under $10M; not stabilized; sponsor net worth below the loan amount or liquidity below roughly nine months of debt service | Below roughly $2M in practice; under 5 units; not stabilized; sponsor net worth below the loan amount or liquidity below roughly nine months of debt service | Property outside the bank's lending footprint; sponsor without local presence or relationship; bank at internal CRE concentration limits | No credible exit; sponsor without a track record on the business plan; plan does not pencil to the takeout |
Above roughly $10 million, CMBS and life company execution enter the picture, with different leverage and prepayment mechanics. Blue Sky arranges these through correspondent relationships.
Pricing is not compared here. Agency execution generally prices inside bank and private credit for comparable leverage.
Banks periodically pause CRE lending when internal concentration limits are reached — a constraint unrelated to the quality of the individual deal.
Agency terms as of April 2026, per Freddie Mac Optigo and Fannie Mae Multifamily term sheets. Bank and private credit terms reflect Blue Sky placement experience. Program terms are set by the lender and change without notice.
What Most Programs Will Do.
Multifamily Financing: The Advisor's Perspective
Multifamily real estate is the most liquid and most heavily-financed sector of commercial real estate. Fannie Mae and Freddie Mac have a congressional mandate to support multifamily housing finance — which means agency capital is consistently available across market cycles, often at pricing that conventional bank capital cannot match. FHA/HUD programs add another agency layer for affordable and market-rate housing. CMBS conduits, life insurance companies, debt funds, and banks all actively compete for stabilized multifamily deals. Bridge lenders fill value-add gaps. The result is one of the most competitive lending environments in real estate — but also one of the most complex for borrowers to navigate alone. It's also where we spend most of our time: arranging multifamily capital across New Jersey and New York — Paterson, Jersey City, Newark, Morristown, and the metro corridors in between — plus Pennsylvania, Connecticut, and multifamily financing in West Palm Beach and Palm Beach County, Florida.
Before any of that matters, a deal has to size. Our multifamily loan sizer runs the three tests every apartment lender runs at once — debt-service coverage, loan-to-value and debt yield — and names which one is limiting your proceeds, because that is what decides which of the lenders above are worth approaching.
And if a lender has already answered — with a no you could not reconcile against your own numbers — why apartment loans get declined walks the same underwriting from the failure side: the test that fails quietly after coverage and leverage both clear, and why the net operating income a committee used was never the one you sent them.
Why Agency Capital Matters for Multifamily
Freddie Mac and Fannie Mae are government-sponsored enterprises with explicit mandates to support multifamily housing. They do not lend directly to borrowers — they purchase loans originated by approved DUS lenders and Optigo sellers. The result is that agency-backed multifamily loans are funded by lenders who can offer materially better pricing than they would on their own balance sheet, because they're selling the loans into the agency programs. For stabilized multifamily of 5+ units, agency execution typically produces the best long-term fixed rates available — often materially below conventional bank pricing. Knowing when to use agency vs. conventional is one of the most valuable distinctions a multifamily advisor brings to a deal.
What the ROAD to Housing Act changes for 5+ unit sponsors is the capital and supply backdrop, not eligibility: the Act's institutional-investor cap reaches only single-family homes of two or fewer dwelling units, and the provisions that touch multifamily finance are the FHA multifamily loan-limit increase and the higher bank public welfare investment cap.
Freddie Mac Conventional Small — The Workhorse Program
Freddie Mac's Conventional Small product serves stabilized multifamily properties from $2M to $10M with 5–50 units. It is the workhorse execution for middle-market multifamily — large enough to handle most investor deals, small enough to sit below the $10M minimum that Freddie's Fixed-Rate product carries. Non-recourse except standard carve-outs, up to 30-year amortization, and 5/7/10/12/15 year fixed periods. It replaced Freddie's small-balance product in April 2026, and the practical consequence for sponsors is the floor: what used to be a $1 million entry point is now $2 million, with no Freddie conventional execution beneath it. Our $2.52M Paterson, NJ closing was placed on Freddie agency execution on a stabilized middle-market property.
Fannie Mae DUS — Mid-Market and Larger
Fannie Mae's Delegated Underwriting and Servicing (DUS) program covers larger multifamily transactions, typically $3M and up in practice. DUS lenders have delegated authority to approve loans within Fannie Mae's underwriting standards, which speeds execution materially. Like Freddie Mac Conventional Small, DUS loans are non-recourse with carve-outs, offer 30-year amortization, and provide 5/7/10/15-year fixed periods. For stabilized properties at this size range, DUS is typically the best-priced execution available.
FHA / HUD — Long-Term Fixed Rate Specialty
FHA/HUD MAP programs offer financing structures unavailable elsewhere — most notably 35-year fixed-rate terms with full amortization. For affordable housing, senior housing, and healthcare multifamily, FHA programs can be the best execution available. The trade-off is longer underwriting timelines (typically 6–12 months for new construction) and additional regulatory requirements. For the right deal, the long-term fixed rate locks in financing certainty for decades.
DSCR Multifamily — The Investor Workhorse
DSCR multifamily programs underwrite the property's rental income rather than the borrower's personal tax returns. For 2–4 unit small multifamily and many 5+ unit deals, DSCR programs provide the most accessible execution for self-employed investors, business owners with significant write-offs, and investors holding multiple properties. The qualification is the property's debt service coverage ratio (DSCR) — total rental income divided by total monthly PITIA. DSCR programs typically offer 30-year fixed-rate terms, allow LLC closings, and have no limit on financed property counts.
Multifamily Bridge — When You Need Speed or Flexibility
Bridge loans serve multifamily deals where stabilized financing isn't yet available — value-add acquisitions where occupancy is low, lease-up situations on new construction, transitional cash flow during a renovation, or pre-permanent financing while waiting for agency execution. Bridge multifamily loans typically run 12–36 months with interest-only payments at higher rates than permanent capital, but with the speed and flexibility to close on opportunities that permanent lenders won't fund yet.
Common Questions from Multifamily Investors
What's the difference between agency, bank, and private capital for multifamily?+
Agency capital — Freddie Mac, Fannie Mae, FHA/HUD — typically offers the lowest long-term fixed rates on stabilized multifamily of 5+ units. Bank capital is more flexible on non-conforming or transitional deals but typically prices higher than agency. Private institutional capital (debt funds, mortgage REITs) fills bridge and value-add gaps where agency and bank won't go. The right execution depends on the deal — we evaluate all three for every transaction.
Do I need tax returns for a multifamily loan?+
Often no. DSCR multifamily programs qualify on rental income only. Bank statement programs qualify on deposits rather than tax returns. Agency programs do require some borrower documentation but focus heavily on the property's net operating income. We have programs for every documentation profile — including borrowers whose tax returns show minimal income due to legitimate business write-offs.
Can I close my multifamily loan in an LLC?+
Yes — standard practice across most multifamily programs. DSCR loans, bank statement programs, and most bank conventional loans close in the LLC name. Agency programs (Freddie Mac, Fannie Mae) require specific entity structure compliance — we'll guide you through what's needed before closing.
What's the smallest multifamily loan you'll arrange?+
DSCR multifamily programs go down to $150,000 on 2–4 unit deals. For 5+ unit agency execution the floor is now $2 million — Freddie Conventional Small starts there, and Fannie's Small Mortgage Loan program states no minimum but sits around the same figure in practice. Below $2 million, a community bank or a private credit lender is the execution.
How fast can a multifamily loan close?+
DSCR multifamily programs can close in 21–30 days. Agency execution runs roughly one to two weeks longer than a comparable bank loan. FHA/HUD takes longer due to additional regulatory review — typically 60–120 days. Bridge loans can close in 7–30 days for time-sensitive transactions.
Who finances 5–8 unit buildings?+
This is the awkward size band — too big for residential lenders, often too small for institutional shops to chase — and it's exactly where an advisor earns their keep. Stabilized 5–8 unit buildings at $2M+ place through Freddie Conventional Small or Fannie's Small Mortgage Loan program (non-recourse, up to 30-year amortization); below $2 million, bank programs and DSCR multifamily programs that qualify on the building's rental income cover the gap. We evaluate each building against all three lanes and place it where the terms are strongest.
What DSCR do multifamily lenders require?+
Most stabilized multifamily programs look for a minimum debt service coverage ratio of 1.20–1.25x — the property's net operating income divided by the annual debt service. A building that doesn't cover at that level today isn't unfinanceable; it's a value-add deal, and the execution becomes bridge capital through the reposition with permanent placement once the stabilized income supports coverage. We model the DSCR from the actual rent roll and actual expenses upfront so the term sheet survives underwriting.
Can I use a bridge loan to buy a value-add multifamily building?+
Yes — that's the standard structure for under-rented or transitional buildings: 12–36 month interest-only bridge capital funds the acquisition and renovation, and once the property stabilizes we place the permanent debt, agency where it fits. Bridge can close in 7–30 days when the timeline demands it. The key is structuring the exit at origination, so the bridge and the takeout are one plan rather than two separate scrambles.
Do agency loans work for buildings under $5M?+
Yes, between $2 million and $5 million. Freddie Conventional Small runs $2M to $10M on stabilized 5–50 unit buildings, non-recourse except standard carve-outs, up to 30-year amortization, with 5/7/10/12/15-year fixed periods; Fannie's Small Mortgage Loan program covers the same band. Below the $2 million agency floor, bank and DSCR programs carry the deal. Knowing when a sub-$5M building prices better through agency versus a bank is one of the most valuable calls an advisor makes.
How do I get started?+
Call Dominick directly at (908) 220-6404 or fill out the contact form. For multifamily, a brief call to discuss the property, deal type (acquisition vs. refinance), unit count, and target loan amount is the most efficient first step. We'll tell you upfront which programs fit and what documentation you'll need.
Is there a Freddie Mac multifamily program below $2 million?+
No. Freddie Mac retired the Small Balance Loan program on April 15, 2026 and replaced it with Conventional Small, which runs $2 million to $10 million. SBL had gone down to $1 million. Freddie's conventional suite now has no product below $2 million — Fixed-Rate and Forwards both carry a $10 million minimum. Fannie Mae's Small Mortgage Loan program states no minimum, but in practice DUS lender appetite puts the realistic floor around $2 million as well. Below that, a community bank or a private credit lender is the execution.
Is agency multifamily financing slower than a bank?+
Not meaningfully. In transactions Blue Sky has placed, agency execution runs roughly one to two weeks longer than a comparable bank loan. Freddie Mac's April 2026 consolidation of small-balance lending into its conventional platform has not measurably changed small-balance timelines. Speed is rarely the reason to choose one over the other.
What sponsor net worth and liquidity do agency multifamily lenders require?+
As a general standard, sponsor net worth at least equal to the loan amount, and liquidity equal to roughly nine months of debt service. This applies to both Freddie Mac and Fannie Mae executions and is not published on either agency's product term sheets. A sponsor with a strong property and a thin balance sheet can be ineligible for agency financing before the property is underwritten at all. Bank and private credit executions apply different sponsor tests.
Can I get agency financing on student or seniors housing under $10 million?+
Not from Freddie Mac. Conventional Small explicitly excludes student properties, seniors housing, manufactured housing communities, and cooperative housing. Freddie's Fixed-Rate product covers all of those but requires a $10 million minimum. A $5 million student housing refinance therefore has no Freddie execution in either product. Fannie Mae's Small Mortgage Loan program does cover manufactured housing communities and market-rate cooperative properties; student and seniors housing are not listed among the program's eligible property types.
Markets We Know Street by Street.
Multifamily underwriting is local. These are the markets where we've closed deals, know the building stock, and can frame the lender narrative correctly the first time.
New Jersey Multifamily Loans
Statewide NJ guide — closed Paterson and Jersey City deals, county-level market context, and every program available in NJ.
Explore the market →West Palm Beach, FL
Multifamily financing in West Palm Beach and Palm Beach County — closed transactions in this market, verified 2025 county lending data, and the bridge-to-agency path.
Explore the market →Morristown, NJ
Commercial and multifamily financing in Morristown and greater Morris County — a market we know personally.
Explore the market →Paterson, NJ
Apartment building loans in Paterson and Passaic County, anchored on our $2.52M Freddie Mac agency closing.
Explore the market →Jersey City, NJ
Apartment building loans in Jersey City and Hudson County, anchored on our $975K 4-family closing.
Explore the market →From Freddie Mac to Bridge. From 4-Unit to 200-Unit. One Advisor Relationship.
Tell us about your multifamily property, deal structure, and capital need. We'll evaluate across our full agency, bank, and private network. Within 24 hours, Dominick sizes up your deal — which lenders fit, how he'd structure it, and what it takes to close.