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%.

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.