Small deals: local banks and credit unions
For 5–50 unit projects, community banks and credit unions are often the best fit — relationship-driven underwriting, recourse debt, and faster decision-making than larger institutions.
Mid-size deals: regional banks, debt funds, agency
In the 50–200 unit range, regional banks, debt funds, and agency (Fannie Mae/Freddie Mac) small-balance programs open up, offering more competitive pricing in exchange for more formal underwriting.
Large deals: agency, life companies, CMBS, syndicated debt
Above roughly 200 units, sponsors typically access agency permanent loans, life insurance company debt, CMBS, or club/syndicated construction loans, often with non-recourse structures for experienced sponsors.
- Construction-to-permanent execution for phased communities
- Forward commitments locking permanent takeout before construction completes
- Joint venture equity alongside senior debt for very large projects
What stays constant across all sizes
Regardless of scale, lenders want sponsor experience proportional to the project, a defensible market study, and equity meaningfully committed (often 50%+) before issuing a term sheet.
Why scale changes your broker's job
As unit count grows, the lender universe narrows and the diligence deepens — we adjust which lenders we approach and how the package is built as your project moves up in scale.