California · Small Multifamily
California small multifamily financing, 5 to 9 units.
Bridge, renovation and ground-up financing for fully residential buildings of five to nine units, with a DSCR refinance as the hold. $1M to $5M, for US investors and investors based abroad on the same terms.
By David Hodara · ·
5-9
Units
$1M-$5M
Loan range
24-48h
Term sheet
~2 weeks
Clean-file close
California small multifamily (5-9 units) market context
Five to nine units is in our in-house box. Bridge goes to 80% LTV, renovation to 90% of total cost, ground-up to 85% of cost, and the DSCR exit to 80% LTV. Buildings of ten units and more are placed through our capital-partner network.
California small buildings are underwritten on the rent rules that actually apply: the statewide rent cap (AB 1482) covers most older rental buildings, local ordinances in several cities add their own limits, and the purchase resets the assessed value under Proposition 13. Seismic retrofit status matters on older wood-frame buildings in cities with mandatory programs.
Non-US investors borrow on the same terms through a US LLC, with no US credit history required.
Typical loan products for California small multifamily (5-9 units)
Each deal gets routed to the product structure that fits. Most small multifamily (5-9 units) deals in California use one of the following.
Bridge loans
Purchase, refinance or cash-out on residential investment property, interest-only, up to 80% LTV. Underwritten on the property and the exit rather than on tax returns.
Renovation loans
Value-add on a property you plan to keep: purchase and renovation budget in one facility, up to 90% of total cost, then a refinance once it rents.
Construction loans
Ground-up financing for spec houses, small residential buildings and build-to-rent, up to 85% of cost, interest only on the drawn balance, draws against inspected work.
DSCR loans
The hold or the exit: long-term financing qualified on the property's rent rather than personal income, up to 80% LTV.
Buying California small multifamily (5-9 units) from outside the US
We finance small multifamily (5-9 units) in California for investors based outside the United States as readily as for US borrowers. The loan is made to a US LLC rather than to an individual, which keeps it business-purpose, and the underwriting looks at the property rather than at a US credit profile a non-resident has no way to build.
That means no US credit history, no US income documents, no foreign-national rate premium, and no requirement to travel to the United States to close. If you do not yet have the entity, forming one is a step in the process rather than a prerequisite you have to solve alone.
California small multifamily (5-9 units) FAQ
Do you finance 10+ unit apartment buildings in California?
Not in-house. Buildings of ten units and more are placed through our capital-partner network. What we fund directly is residential property of one to nine units.
How do rent rules affect a California 5-9 unit loan?
We underwrite the rent the building can legally reach, under the statewide cap and any local ordinance, not a market rent it cannot get to. That usually matters more for the DSCR exit than for the bridge.
What does the financing cost upfront?
Nothing. There are no upfront fees. Our fee is 1 to 2% of the loan, paid at closing, and the rate is set on the term sheet by leverage, the business plan and the sponsor's completed projects.
Can a foreign national finance small multifamily (5-9 units) in California?
Yes. We lend to a US LLC rather than to an individual, and we underwrite the property rather than a US credit profile, so a non-resident with no US credit history and no US income documents borrows on the same terms a US investor receives. You do not have to travel to the United States to close.
Got a California small multifamily (5-9 units) deal? Send it over.
Term sheet inside 48 hours, or a fast no so you can move on. Business-purpose investment property financing only.