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Bad/Poor Credit Apartment/Multifamily Loans/Financing

Apartment Loan Store has specialized in bad/poor credit apartment/multifamily loans since 1997 for investors with less than good credit. With three programs to choose from (see below) our poor credit apartment loan specialists will find the poor credit apartment financing that is right for you. To start improving your credit score yourself you can get some great credit repair advice from the Federal Trade Commission. Go to:

It also makes sense for you to pull your own credit report for free and see exactly what is on there. Credit Karma will email you free monthly updates on your credit score and credit report. Go to:

Apartment Loans for poor credit. Best Commercial Loan Rates.

Poor Credit Loan Programs

Securitized B Credit Program
Private C Credit Program
Private Loan Poor Credit Program

Securitized B Credit Program

This apartment loan program has good rates and terms and is for apartment building investors who might have had some credit problems 4 to 7 years ago, but have since re-established their credit. Borrowers might have a foreclosure, short sale, or a string of late pays in the past that still show up on their credit report, but in the last 2 - 3 years or longer have had positive marks on their credit.  To balance out the negative past they will need a good explanation for what happened to create the derogatory credit marks and also have some mitigating factors from the list below that balance this out:

  • A credit score of 640 or above
  • A subject property that cash flows above average
  • A proposed loan to value (LTV) of 65% or lower
  • A net worth equal to the size of the loan
  • 10% or more of the proposed loan in post-closing cash
  • Experience in owning and operating an apartment building of 5 units or more or a commercial property
  • Have successful experience in turning around an apartment complex if this is what you will be doing
  • Be able to bring in a financially stronger partner

Program Highlights

  • 75% LTV  (Cash Out ok on Refinances)
  • 1.25 DSCR
  • 30 year amortization
  • Fixed Rates and terms up to 10 years
  • Non-recourse available

Private Loan C Credit Program

This program has higher rates and loan fees, and is for borrowers who have a credit score between 580 and 639 and show that their credit has been improving in the past 2 years with very few or no derogatory marks during this duration.  Good explanation for the event that caused the downturn in credit required:

  • 65% to 70% LTV
  • Loan terms 1 – 3 years
  • Usually interest only payments
  • Owner Carry Second might be allowed
  • Some Post Closing Cash Required

Private Loan Poor Credit Program

This program has higher rates and loan fees and is for borrowers who have credit scores below 580 and have derogatory marks on their credit report that have been entered in the past 2 years:

  • 60% to 65% LTV
  • Loan Terms 1 – 2 years
  • Interest Only Payments
  • Subordinate Financing might be allowed
  • Some Post Closing Cash Required

Need help calculating your DSCR? Try our free Debt Service Coverage Ratio Calculator here.

Want to learn more about DCSR and why it is the Number One Factor in analyzing the risk level of your business or investment property loan? Read our current article here! 


Getting the right loan and the lowest rate requires wisdom and finesse. If you’re ready to partner with a team of professionals who’ve built a foundation on straight talk and true strategy, we are the loan store for you.


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HUD Loans are one of the best options with the current level of interest rates. For a complete guide to HUD Multifamily Loans please go here:

HUD Multifamily Loans - The Complete Guide