Long-term Financing for Stabilized Multifamily, Mixed-Use and other Commercial Properties
Fixed-rate, business-purpose financing for investors, from small multifamily rentals to commercial properties, with simple documentation on eligible scenarios.
Commercial DSCR Financing
Long-term financing for stabilized multifamily 5+ unit, mixed-use, and commercial investment properties.
Program at a Glance
Two financing options for stabilized commercial investment properties.
5–9 Unit Multifamily
For stabilized multifamily rental properties with five to nine units.
- Property: Multifamily rental properties with 5–9 units.
- Leverage: Up to 75% loan-to-value (LTV), depending on FICO score and transaction type.
- Credit: 680 minimum FICO score.
- Debt service coverage: 1.15x minimum debt service coverage ratio (DSCR).
- Structure: 5/6 adjustable-rate mortgage or 30-year fixed; interest-only option available.
- Transactions: Purchase, rate-and-term refinance, and cash-out refinance.
- Property condition: Stabilized, with no more than two vacant units.
Commercial Properties including Multifamily 5+ Units
For a broader range of stabilized commercial investment properties.
- Property: Multifamily 5+ units, mixed-use, office, retail, warehouse, self-storage, and automotive properties.
- Leverage: Up to 75% loan-to-value for multifamily and mixed-use; up to 70% for commercial properties. Lower leverage is often a stronger fit.
- Credit: Reviewed case by case; no fixed minimum score.
- Debt service coverage: Requirements depend on property type, loan amount, and the complete scenario.
- Documentation: Simple documentation with no W-2s, pay stubs, or income verification.
- Structure: 30-year fixed; shorter terms and interest-only options may be available.
- Transactions: Purchase, rate-and-term refinance, and cash-out refinance.
- Property condition: Stabilized only; no rehabilitation or renovation financing.
Guidelines Brokers Should Know
Use these guidelines to identify likely fit before submitting a commercial property scenario.
Properties We Finance
- Stabilized, business-purpose investment properties
- Multifamily properties with five or more units
- Mixed-use, office, retail, warehouse, self-storage, and automotive properties
- Multifamily properties generally need at least 70% occupancy
- Mixed-use properties containing apartments and restaurant space may be considered
Market Considerations
- Properties should be in or near established markets
- Recent comparable property sales should be available
- Rural properties with limited comparable sales may not fit
- Lower-leverage requests are generally a stronger fit for commercial property scenarios
Properties That May Not Fit
- Land or properties with surplus land
- Hospitality properties
- Standalone restaurants
- Gas stations
- Entertainment venues
- Properties requiring rehabilitation or renovation
Borrower and Structure Considerations
- The simple-documentation option does not require W-2s, pay stubs, or income verification.
- Down payment funds do not require seasoning.
- Experienced investors with multiple properties and strong reserves may receive greater flexibility.
- First-time investors generally receive a 5% reduction in maximum loan-to-value.
- Credit is reviewed case by case. Lower-credit scenarios generally require clean recent payment history, current mortgages, and limited charge-offs or collections.
- Foreign investors may qualify at reduced leverage.
- Combined loan-to-value may reach 90% in eligible scenarios, subject to the complete structure and underwriting review.
- Loans include a declining prepayment schedule. Pricing alternatives may allow for a shorter schedule.
Not sure which option fits?
Send us the property type, requested loan amount, occupancy, borrower credit profile, and transaction type. We’ll review the scenario and help determine the appropriate program.
Download the loan program details.
Frequently Asked Questions
What properties qualify for long-term financing?
Kirkland’s long-term financing is for stabilized, business-purpose investment properties, including multifamily with 5 or more units, mixed-use, office, retail, warehouse, self-storage and automotive properties. Land, hospitality, standalone restaurants, gas stations and entertainment venues are not eligible, and renovation financing is not available.
What are the loan amounts and maximum LTV?
Loans start at $100,000. Maximum leverage is up to 75% LTV for multifamily and mixed-use properties and up to 70% for commercial properties, with lower leverage often a stronger fit. These are maximums, not guarantees. Approved leverage depends on the borrower, property and full underwriting.
Is a DSCR required?
The 5–9 unit multifamily tier requires a minimum 1.15x DSCR. For multifamily 5+, mixed-use and commercial scenarios, DSCR requirements depend on property type and loan size.
What documentation is required?
Eligible scenarios use simple documentation with no income verification. Typical items include entity documents if closing in an entity, ID, a title report, leases, insurance, a purchase contract on purchases, and a payoff demand on refinances. Owner-occupied commercial properties may also need a business license and two years of profit and loss statements.
Can a borrower with lower credit qualify?
Credit is reviewed case by case. Borrowers with lower scores generally need no recent bankruptcies or foreclosures, current mortgages and limited charge-offs and collections. Experienced investors with strong reserves have the most flexibility.
Is there a prepayment penalty?
Loans carry a declining prepayment schedule, and options may be available to shorten it. [Confirm disclosure language before publishing.]
Can I use this program for a property that needs renovation?
This program is for stabilized properties. If the property needs renovation or repositioning, the Multifamily 5+ Unit Value-Add program may be a better fit.
Don’t have a deal that fits?
See how Kirkland reviews a loan from initial scenario through closing.