Phoenix sponsors use DSCR for two different buildings and expect one page to cover both. It does not. A rental house or a fourplex is an investor one-to-four-unit file, and it is not written up here. This page is the commercial side: an apartment community of five or more units, or a mixed-use or other small commercial property in the city. The parent explanation, including how income is adjusted, is Arizona commercial DSCR. The city apartment map is Phoenix multifamily. The City of Phoenix website is the municipal front door. It does not calculate coverage.
Fannie Mae's multifamily financing-options page describes loans delivered through Delegated Underwriting and Servicing lenders. Freddie Mac's financing page says it purchases conventional multifamily loans from approved lenders and offers products through its Optigo network. Those are apartment executions for five or more units, made by the approved lender. Capital Market Funds is not a Fannie Mae DUS lender and is not a Freddie Mac Optigo lender. Arranging an introduction does not change that. A smaller apartment loan, when size is the issue, is Arizona small-balance multifamily. A long Phoenix hold that is already leased is Phoenix permanent.
The math is still income divided by the annual payment. What people mean by a workable result, without a number we require, is what is a good DSCR. Type Phoenix figures you actually have into the DSCR calculator. The rates and loan calculator will not supply a coupon. The Mortgage Bankers Association's research section is national commercial-mortgage context, not a Phoenix cap rate.
Mixed-use on a Phoenix street
A building with shops under apartments needs both incomes labeled. Lenders may count the commercial leases on a different vacancy assumption than the units. Send the rent roll split that way. A single blended number hides which tenant is month-to-month. If the apartments are fewer than five and the rest is a shop, say that plainly so the file is not forced into an agency apartment box that wants five residential units.
Vacant retail on the ground floor is not a rounding error. It can be the reason a permanent lender passes and a bridge is the honest first loan. Do not fill the vacancy with a pro forma and call it trailing income. Mark the projection.
Agency apartments stay with the executing lender
If the Phoenix asset is a stabilized community of five or more units, agency debt can be compared with a bank or a life company. The executing lender for Fannie Mae is a DUS lender. The executing lender for Freddie Mac is an Optigo lender. We package and arrange. We do not deliver the loan as either one. If the community is in a renovation, say so. Coverage on today's rent roll may not be the coverage those programs want.
Craig Hoebing arranges the Phoenix commercial file from Scottsdale under CMB-1047342 and NMLS 1445066. There is no separate Phoenix office. Nothing on this page is a ratio the firm requires, because the firm is not the lender.
Phoenix commercial coverage items to separate up front
Unit count
Five or more apartments stay here. One to four units go to the investor DSCR pages.
Mixed-use split
Shop rent and apartment rent in separate lines, with the vacant suites marked.
Trailing versus projection
Label each. A lender may refuse the projection even when the math looks fine.
Which lender would sign
A DUS lender, an Optigo lender, a bank, or someone else. This office is none of the first two.
Who can be asked to size a Phoenix commercial loan
| Source | When it fits |
|---|---|
| Fannie Mae | Phoenix apartments of five or more units, arranged and placed with a DUS lender. We are not that lender. |
| Freddie Mac | A Freddie Mac execution for the same apartment size, placed with an Optigo lender. |
| Bank | A bank coverage test on a Phoenix mixed-use or small commercial building, or on apartments outside an agency box. |
| Life Company | A life-company loan on stabilized Phoenix commercial income when leverage and the rent roll fit. |