There are three basic types of apartment loans:(1) Purchase, (2) Construction and (3) Refinance. The Lender will look at certain factors with any of the three types of loans.

In all cases, the Debt Service Coverage Ratio will be calculated to ascertain whether or not the net operating income of the property can service the debt load including the loan payment of the property.The Net Operating Income is the income from a rental property left over after paying all of the operating expenses. Lenders generally require a DSCR of 1.25 percent.However,some lenders may allow a negative cash flow if the loan to value ratio is low, the borrower has stable and strong outside income, with good personal liquidity and the size of the negative cash flow is manageable, which will be rectified in the foreseeable future. Usually, the borrower will have to submit a rent roll, copies of leases, property information and information necessary to calculate DSCR.

A second factor that will be looked at with all types of loans is Loan To Value.Depending on a number of factors, 90 percent loans to value are possible with this type of financing. Loan amounts up to $50 million are possible depending on circumstances and eligibility requirements.

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