How New City Financial underwrites multifamily financing
Apartment buildings are underwritten on their income, and that plays to a multifamily borrower's advantage. New City Financial qualifies these loans on the property's own cash flow rather than your personal tax returns, so we begin with the rent roll — the in-place rents across every unit — net out operating expenses to reach net operating income, and measure that against the debt-service coverage ratio (DSCR). Deals that clear a 1.0 DSCR or better on credible in-place or stabilized rents are our core business. A defining strength of the asset class is diversified tenancy: income is spread across many households on staggered leases, so a single vacancy moves the number far less than it would in a single-tenant building. That resilience is exactly what a cash-flow-first lender wants to see, and it is why an LLC, a partnership, or a self-employed investor can close on an apartment complex without the multi-year income documentation a conventional bank demands.
On terms, we lend up to 75% of value, on loan amounts from $75,000 to $50 million, with a 500 FICO floor and closings in under three weeks when title, appraisal, and third-party reports cooperate across our 40-plus-state footprint. Fixed-rate structures over 3, 8, and 30 years — with no balloon payments — let you underwrite a hold with a debt cost that will not reset in the middle of your business plan, which matters when unit renovations and lease-up run over several quarters. Any rates shown on this site are illustrative; your actual pricing depends on the asset, the market, your leverage, and sponsor experience.
Multifamily deals we finance
We finance across the multifamily spectrum: stabilized garden-style and mid-rise apartment communities, smaller five-to-twenty-unit buildings, larger institutional-grade complexes, and mixed-income or workforce housing where the rents are durable. Value-add is the classic multifamily business plan, and it is one our financing is built around — acquiring a building with below-market rents or deferred maintenance, renovating unit interiors and common areas as leases turn, tightening operations, and re-leasing at market to lift NOI. Because the plan plays out unit by unit rather than in a single event, an apartment reposition tends to be more measured and repeatable than a single-tenant re-lease, which is part of why the strategy carries such a long track record.
Common uses include acquisition, rate-and-term refinance to replace a maturing or higher-cost loan once operations stabilize, and cash-out refinance to pull equity for the next down payment or a capital-improvement budget. Every loan is business-purpose, so we work with investors and owners rather than consumer homebuyers, and we do not finance primary residences — an owner-occupied unit inside a larger commercial building is evaluated under our business-purpose commercial guidelines. As a commercial lending firm, our fastest read on whether a specific building pencils comes from the rent roll, the in-place NOI, the unit mix, and your business plan for the property. If you are weighing an acquisition or a refinance, a short conversation about those numbers is the quickest way to know where the deal lands.
