Texas multifamily real estate has been one of the strongest performing asset classes in the country over the past decade, driven by relentless population growth, corporate relocations, and a state with no income tax that continues to attract residents from high-cost states. Commercial Loans of Texas has been financing multifamily properties — apartment buildings, mixed-use residential, student housing, and workforce housing — since 1998. That is 28 years of direct multifamily lending experience across the full cycle, from the financial crisis of 2008 through the unprecedented rent growth of 2021 to 2023 and into today’s more normalized market. We finance 5-unit duplexes up through large apartment complexes, and everything in between. Our multifamily programs do not require tax returns for DSCR qualification — the property’s rent roll and net operating income drive the underwriting. That means self-employed borrowers, investors with complex tax situations, and LLC-based portfolios all qualify on the same terms as W-2 borrowers. If the property cash flows at a 1.20 or higher DSCR, we can fund the loan. Call 877-895-3634 or apply online today.
Texas Multifamily Loan Programs (5+ Units)
- DSCR Multifamily Loans: 7.0 to 9.5% rate, 30-year amortization, 70 to 80% LTV, minimum 1.20 DSCR. No tax returns required. Rent roll and current leases drive approval. Available for 5+ unit apartment buildings, mixed-use buildings with residential component, and student housing.
- Agency-Style Multifamily: 6.75 to 8.5%, 25 to 30 year amortization, 75 to 80% LTV. For stabilized multifamily with 90%+ occupancy and documented operating history. Best terms available for strong-performing Texas apartment buildings.
- Bridge / Value-Add Multifamily: 10 to 14%, 12 to 24 months, 65 to 75% LTV. For apartment buildings with deferred maintenance, below-market rents, or partial vacancy that need repositioning before qualifying for permanent DSCR financing.
- Multifamily Construction: 10 to 13%, 12 to 24 months, 65 to 70% LTC. Ground-up apartment development. Draw schedule financing with interest-only during the construction period.
- Cash-Out Refi (Multifamily): 8 to 11%, 70% LTV max, no seasoning. Texas apartment values have appreciated significantly — many owners hold substantial untapped equity.
2026 Texas Multifamily Loan Rates
| Loan Type | Rate | LTV | Term |
|---|---|---|---|
| DSCR Multifamily | 7.0-9.5% | 70-80% | 30 years |
| Agency-Style Multifamily | 6.75-8.5% | 75-80% | 25-30 years |
| Bridge / Value-Add | 10-14% | 65-75% | 12-24 months |
| Multifamily Construction | 10-13% | 65-70% LTC | 12-24 months |
| Cash-Out Refi | 8-11% | 70% max | 20-25 years |
| No-Doc / Stated Income | 9-13% | 65% | 12-36 months |
Multifamily Property Types We Finance
We finance all multifamily property types throughout Texas: apartment buildings from 5 units to 200+ units, urban infill multifamily, garden-style apartment complexes, mixed-use buildings combining ground-floor retail with residential units above, student housing near Texas universities (UT, Texas A&M, Texas Tech, UH, TCU), workforce housing and Section 8 properties, senior apartments and age-restricted housing, and build-to-rent single-family communities. All must be 5 units or more for commercial multifamily loan programs.
How DSCR Underwriting Works for Multifamily
DSCR stands for Debt Service Coverage Ratio. It is calculated by dividing the property’s net operating income (NOI) by the annual debt service (principal and interest payments). A 1.20 DSCR means the property generates 20% more income than needed to cover the loan payment. For a $1 million DSCR multifamily loan at 8%, the annual debt service is approximately $89,000. To achieve a 1.20 DSCR, the property must generate at least $106,800 in NOI after vacancy and operating expenses. The rent roll — current leases showing actual rents being collected — is the primary document for DSCR multifamily underwriting. No tax returns are required because the property income is what matters, not the borrower’s personal income.
Qualification Requirements for Texas Multifamily Loans
Credit scores of 620 or higher preferred for DSCR programs; bridge loans have no credit minimum. DSCR of 1.20 or higher required for long-term programs. Occupancy of 85% or higher preferred for DSCR underwriting; bridge programs available for partially vacant properties. Down payments or equity of 20 to 25% for DSCR programs. Property must be 5 or more units for commercial multifamily programs. Properties with 2 to 4 units are financed under residential programs with different qualification criteria.
How to Get a Texas Multifamily Loan
- Contact us: Call 877-895-3634 or apply online with the property address, number of units, current occupancy, and approximate current rents.
- Term sheet: We review your rent roll and issue a term sheet within 24 to 48 hours outlining rate, LTV, and amortization.
- Due diligence: Appraisal (which includes rent comp analysis), title search, and review of current leases and operating expenses.
- Close: DSCR multifamily loans typically close in 21 to 30 days. Bridge loans close in 7 to 10 days.
Frequently Asked Questions — Texas Multifamily Loans
What is the minimum number of units for a commercial multifamily loan?
Five units or more. Properties with 2 to 4 units (duplexes, triplexes, quadplexes) are treated as residential properties and financed under different programs with different qualification standards. At 5 units, the property crosses into commercial underwriting territory — DSCR-based, no tax returns required, 25 to 30 year amortization available.
Do I need to show personal income to qualify for a Texas multifamily loan?
Not for DSCR or hard money programs. The property’s rent roll and NOI drive the underwriting. This is a major advantage for self-employed investors, real estate professionals with complex tax situations, and LLC-based investment portfolios where personal income documentation is difficult to produce. The apartment building pays for itself — and that is what we underwrite.
Can I get a multifamily loan on a value-add property with high vacancy?
Yes, through our bridge loan program. A property with 60 to 70% occupancy does not qualify for DSCR permanent financing, but it can qualify for a hard money bridge loan at 65 to 75% LTV. The borrower executes a lease-up business plan during the bridge term, then refinances into long-term DSCR financing once occupancy and income are stabilized. This is one of the most common deal structures we see in Texas multifamily.
What markets in Texas have the strongest multifamily fundamentals in 2026?
Fort Worth, San Antonio, and suburban Austin suburbs (Round Rock, Cedar Park, Pflugerville) continue to show strong fundamentals with positive absorption despite new supply. Dallas Class B and C multifamily in established neighborhoods performs well. Houston workforce housing near the Texas Medical Center and Energy Corridor has remained consistently occupied. Class A urban multifamily in Austin proper has faced elevated vacancy from new supply but is recovering.
Can I do a cash-out refinance on my Texas apartment building?
Yes. Cash-out refinances on Texas multifamily are available at 8 to 11% for DSCR programs, up to 70% LTV, with no seasoning requirement. If you purchased or last refinanced at a low rate and the property has appreciated, or if you have paid down significant principal, a cash-out refi can unlock capital for new acquisitions without selling the building. We do these routinely.
Ready to finance your Texas multifamily property? Call 877-895-3634 or apply online at Commercial Loans of Texas. We have been closing Texas apartment loans since 1998. No tax returns required, DSCR-based underwriting, and we close on time.