Loan options at a glance
Typical ranges we see on Georgia deals. Every lender sets its own terms, so treat these as a starting point for the conversation.
| Loan | Buildings | Typical down | Term / amortization | Sized on |
|---|---|---|---|---|
| FHA / VA (owner-occupied) | 2 to 4 units | 3.5% FHA, 0% VA | 30 yr fixed | Your income plus part of the rent |
| Conventional | 2 to 4 units | Low down if you live there, 20% to 25% investor | 30 yr fixed | Your income, credit, DTI |
| Investor DSCR loan | 1 to 4 units | 20% to 25% | 30 yr, often fixed | Property rent vs payment |
| Bank or credit union | 5+ units, commercial, church | 25% to 35% | 5 to 10 yr term, 20 to 25 yr amortization | DSCR and LTV, usually recourse |
| Agency small-balance | Stabilized 5+ units | 20% to 35% | 5 to 10 yr+ fixed, up to 30 yr amortization | DSCR and LTV, non-recourse options |
| Bridge / private | Value-add, vacant, renovation | 15% to 30% plus rehab equity | 1 to 3 yr, interest-only | Business plan and as-is / as-stabilized value |
| SBA 504 / 7(a) | Owner-user business property | 10% to 20% | Up to 25 yr | The business cash flow |
| Seller financing | Any, most common on older small buildings | Negotiated, often 10% to 30% | 3 to 7 yr balloon | Whatever you and the seller agree |
2 to 4 units: residential lending
Duplexes, triplexes and fourplexes still count as residential. If you will live in one unit, FHA, VA and conventional owner-occupied loans give you the lowest down payment you will ever see on income property, and part of the rent counts toward qualifying. Investors usually pick between a conventional investor loan (your income does the work) and a DSCR loan (the rent does the work). See DSCR loans for apartment buildings for how the coverage test works, and browse duplexes for sale in Georgia or fourplexes for sale in Georgia.
5+ unit apartment buildings: commercial lending
- Local banks and credit unions do most small Georgia apartment loans. They know the submarket, move faster, and usually want a personal guarantee. Watch the term: a 5 year fixed on a 25 year amortization means a refinance or balloon in year 5.
- Agency small-balance programs through approved lenders suit stabilized buildings with clean books. Longer fixed terms and non-recourse options, but stricter occupancy, condition and minimum loan size rules.
- Bridge and private lenders fund the buildings banks will not: heavy vacancy, deferred maintenance, a lease-up. You pay for speed and flexibility, and you need a realistic exit loan.
- Seller financing fills gaps. A seller carrying 10% to 20% behind a bank first, or the whole note, can make a deal work that fails 1.25x at the bank.
Browse apartment buildings for sale in Georgia and apartment buildings for sale in Atlanta, or start wider with multifamily investment properties in Georgia. Send me the building and I will match it to the loan that fits.
Same building, three loans
A $1,000,000 building with $70,000 of NOI (a 7.0% cap). Illustrative terms only, to show how the structure changes the cash you need and whether the building covers its debt.
| Structure | Down | Rate / amort. | Annual debt service | DSCR | Cash flow |
|---|---|---|---|---|---|
| Local bank, 5 year fixed | $300,000 (30%) | 7% / 25 yr | $59,369 | 1.18x | $10,631 |
| Agency small-balance, 10 year fixed | $250,000 (25%) | 6.5% / 30 yr | $56,886 | 1.23x | $13,114 |
| Seller financing, 5 year balloon | $200,000 (20%) | 6% / 30 yr | $57,557 | 1.22x | $12,443 |
None of the three clears 1.25x at a 7% cap and these rates, which is the Georgia market in one table. The fixes are a lower price, more equity, a longer amortization, or seller paper. Run your own numbers on the commercial mortgage calculator and the DSCR and cash-on-cash calculator.
Commercial, church and owner-user buildings
Leased commercial property (retail strips, multi-tenant office, leased warehouses) is underwritten like apartments: NOI, DSCR, LTV, plus tenant credit and lease term. Lenders discount short leases and single tenants. A business buying a building it will occupy can use SBA 504 or 7(a), often with 10% to 20% down.
Congregations buying a church usually finance with a bank, credit union or church-focused lender, and the lender looks at giving history and budget instead of rent. Investors buying a church to lease or convert are back to a commercial loan sized on the plan. Browse commercial properties for sale in Georgia, warehouses for sale in Georgia and churches for sale in Georgia. Building from the ground up starts with a land or construction loan on land for sale in Georgia, and owner-users who are not ready to buy can compare the payment with commercial space for lease in Georgia.
Georgia details lenders will ask about
- Property tax at your price. Georgia assesses at 40% of fair market value, and a sale often triggers a reassessment. Lenders underwrite the tax at your purchase price, not the seller's bill. See how NOI is built.
- Insurance. Premiums on older buildings have climbed. Get a real quote before you rely on the listing's number.
- Deed to secure debt. Georgia uses a security deed, not a mortgage, and allows non-judicial foreclosure. Read the default and balloon terms on any seller note.
- Exchange timing. Buying with 1031 proceeds? Line up the loan early so it fits the 45 and 180 day clock on the 1031 exchange calculator.
How to line up financing, step by step
- Match the loan to the building. 2 to 4 units: residential lenders. 5+ units or commercial: banks, credit unions, agency lenders, bridge lenders or the seller. Owner-user business property: add SBA 504 and 7(a).
- Gather the property package. Rent roll, trailing 12 months of income and expenses, current leases, tax bill, insurance and any service contracts. Lenders underwrite from these, not the listing.
- Gather the borrower package. Personal financial statement, schedule of real estate owned, two to three years of tax returns, and proof of down payment and reserves.
- Run DSCR and loan-to-value. Max loan is the lesser of NOI / required DSCR converted to a loan amount, and price times max LTV. Whichever binds sets your down payment.
- Get two or three term sheets. Compare rate, amortization, term, recourse, prepayment penalty and reserves. A slightly higher rate with a longer amortization can carry more loan.
Loan ranges are typical market ranges, not offers or quotes, and lender programs change. Jeff Crowe is a commercial real estate agent, not a lender. Georgia DSCR figures are an asking-price screen from active FMLS listings (October 2026), not closed loans.