A Multifamily building eligible for commercial financing is defined as a structure having at least 5 or more units with the residences for permanent habitation. The major factor in determining if you can qualify for a multifamily commercial mortgage is the property itself. These are a few key characteristics and considerations on a multifamily commercial building to make it eligible to be financed:The Condition.1. Signed leases with terms of 1 year or greater.2. What are the number of bedrooms and bathrooms.3. What is the history of the vacancy rates.4. Do the units have separate utilities to bill the tenants directly.5. Is your place professionally managed.6. Is there any deferred maintenance, damage or functional obsolescence to address with the building.7. Does the facility have a pool, clubhouse or tennis court and other amenities.8. Is the facility close to employment, education, shopping and attractions with public transportation and access to major streets and expressways nearby.Not only are these characteristics important in determining if your place qualifies for financing, these are major factors in determining its value.The Income.In addition to the condition, the income as compared to the expenses is a key to determine both the value and how much mortgage you can qualify for. The greater the income in relation to expenses the easier it is to qualify for a commercial mortgage. The best rates are offered by the lenders that are both conservative and accept the least risk. The most conservative lenders require 1.5 times the income to the expenses to qualify for financing. If units are in good condition and have a little less income there is still financing available down to as low as 110 per cent of the expenses.The Management Company.The experience of the property manager is also a consideration to financing. If you have purchased a commercial building or are considering doing so and you do not have experience owning or managing the real estate it is important to hire a professional manager. The larger properties almost all have professional management company. When considering smaller units you may believe they are an unnecessary expense, but professional managers increase your ability to qualify to fund commercial project if you do not have management experience.The Owner.Quite often on larger buildings the financing is based solely on the property. But for smaller multi family projects the lenders require a personal guarantee and the review, income, credit and assets just like a residential investment financing. The typical down payment required is 20% to 30% for properties and the lender require the borrower to have reserves for repairs, vacancies and other contingencies.The Loan.Apartment commercial loans are generally structured with terms written with 5, 7, 10, 15, 20, 25, and 30 years terms with or without balloon payments. For this type of commercial loan expect to provide full documentation including:1. Last 3 years of operating statements.2. Year to date operating statement.3. Property rent roll.4. Last 3 years federal tax returns of borrower.5. Personal financial statement(s).6. Digital photos of the subject apartments.There are multifamily commercial mortgage products that can help people with significantly impaired credit, these have higher commercial loan rates. For borrowers with great credit and assets that deserve the best rates, funding is also available.