In general, the minimum debt yield for a commercial real estate loan is around 10%. Some lenders, however, place their minimum debt yield requirements as low as 8%, while others require debt yields of up to 12%.
What are the Underwriting Guidelines for FHA Multifamily Loans?
The underwriting guidelines for FHA multifamily loans are perhaps the strictest on the market today, excluding perhaps underwriting guidelines from life company lenders. HUD and lenders require a wide scope of reports, including appraisals, market studies, environmental reports, and much, much more.