A multifamily mortgage is a loan offered to a several families within one living area such as an apartment complex. Multifamily mortgages can be offered by any institution that offers loans, such as banks and mortgage companies. Multifamily mortgage rates have a tendency to be higher because they are often considered to be used for investment properties and are not government insured like FHA loans. Typically, the loan will cover up to 80 percent of the total cost of the property to ensure that the lender can recover its losses in the event of a default and foreclosure. In some cases, the lender may offer a full loan if they believe that the property will appreciate in value to cover their losses as well. Multifamily mortgages can have fixed or variable rates attached to them, and as with any loan, this is listed in a mortgage contract.