Commercial Mortgage Loans
Select Commercial is focused on giving our customers the best commercial real estate loan solutions for each client’s needs. We are always updating our site with the latest information concerning commercial mortgages. We offer great terms on multifamily loans which continues to be our most popular loan type. We analyze the borrower's current situation to determine the best course of action moving forward. See today's commercial mortgage rates for all of the loan types we serve.
Commercial Real Estate Loan Rates - Rates updated July 5th, 2025
| Loan Product | Rates (start as low as) | LTV | |
|---|---|---|---|
| Apartment Loan Rates (Over $6,000,000) | 5.24% | Up to 80% | Get Free Quote |
| Apartment Loan Rates (Under $6,000,000) | 5.70% | Up to 80% | Get Free Quote |
| Business Real Estate Loan Rates | 6.02% | Up to 90% | Get Free Quote |
| Commercial Mortgage Rates | 6.22% | Up to 75% | Get Free Quote |
Latest Expert Insights from Stephen A. Sobin
Stephen A. Sobin, the president of Select Commercial Funding LLC, is a renowned expert in the field of multifamily financing. His insights and perspectives are regularly sought by leading industry publications. Here are his latest contributions that highlight his deep understanding of the multifamily financing landscape and his commitment to providing clear, insightful analysis on key industry issues.
Inflation’s Current Impact on Multifamily
In an article featured in Multi-Housing News, Stephen Sobin highlighted that commercial mortgage rates remain a key concern for real estate investors seeking financing. The last few years have seen a depressed real estate market due to higher inflation and interest rates. read the full article.
Will the July Jobs Report Pressure the Fed to Act?
In an article featured in Multi-Housing News, Stephen Sobin highlighted that the July Jobs Report showed the highest rate of unemployment in nearly three years. July’s employment showed an increase of only 114,000 new jobs, the second lowest total of 2024. The previous year’s monthly average was approximately 215,000 new jobs. read the full article.
Persistent Inflation and Its Effects on CRE
In an article featured in Multi-Housing News, Stephen Sobin highlighted that while inflation is still a challenge for the Federal Reserve, there are many positive signs for the commercial real estate industry. The headline Consumer Price Index rose 3.2 percent for the year ended Feb. 29, a figure 20 basis points lower than the Dec. 31, 2023, rate. read the full article.
Commercial Spotlight: Mid-Atlantic Region In this four-state powerhouse, smaller metros are thriving.
In a feature in Scotsman Guide, the Mid-Atlantic Region's real estate dynamics are explored, highlighting its resilience and growth amidst the pandemic.
Stephen Sobin of Select Commercial Funding LLC shared insights on the New York market's allure and the challenges buyers face. He noted the shift from primary urban areas to tertiary markets due to evolving preferences and financial conditions. For a deeper dive into Sobin's analysis, read the full article.
What the New Jobs Report Means for CRE
In an article titled "What the New Jobs Report Means for CRE" in Commercial Property Executive, Stephen Sobin shared his perspective on the latest jobs report and its implications for the Commercial Real Estate (CRE) sector. He highlighted the challenges posed by high interest rates and the prevailing uncertainty in the market. Sobin remarked, "Sellers aren’t selling, buyers aren’t buying... Everyone is waiting because no one knows what to expect." For a detailed analysis and more of Sobin's insights, read the full article.
Decoding "Junk Fees" in Rental Housing
In another latest contribution to Multi-Housing News, Sobin provided expert commentary in an article titled "What's Next for Junk Fees? The Industry Weighs In". He clarified the difference between legitimate fees collected for various third-party services and so-called "junk fees". Sobin emphasized the importance of borrowers understanding their rights in negotiating all loan terms and the obligation of lenders to disclose all fees.
Understanding the Impact of Federal Reserve's Decisions
In a recent article titled "How the Fed's Pause on Interest Rates Impacts Multifamily" published by Multi-Housing News, Sobin shared his expert insights on the Federal Reserve's decision to pause interest rate hikes. He accurately predicted that the Fed would not raise rates in June, citing recent bank failures and lingering concerns about a potential recession.
Stay tuned for more expert insights from Stephen A. Sobin on the evolving multifamily financing landscape.
Our Reviews
What’s going on with commercial mortgage rates in early 2025?
The Federal Reserve’s Federal Open Markets Committee cut the federal funds rate by 50 basis points at its September 2024, meeting and another 25 basis points each at its November and December 2024 meetings. These were the first rate cuts since March 2020, when the Fed began a long series of rate hikes to curb the high rate of inflation. The Fed’s decisions show that they believe that inflation is under control and moving into the 2% range that the Fed has set as its goal. The Federal Reserve took these actions to prevent further declines in the labor market. In early 2025, the Fed hinted that the pace of further rate cuts would slow in 2025 and hinted that there might be two further cuts this year. These rate cuts, along with potential 2025 rate cuts, may create positive investor demand for commercial real estate, and may provide aid for commercial mortgage customers, as well as consumers in general. We must caution, however, that the Federal Reserve cuts affect short term interest rates directly and long-term rates only indirectly. The Prime Rate, which is a short-term rate, dropped from 8.50% to 7.50% with the Fed’s 2024 actions. However, most commercial mortgage rates are based on the 5-, 7-, or 10-year treasury rates, and not the Prime Rate. We have seen these long-term treasury rates actually rise since the Fed cut short term rates! On September 18th, the 10-year treasury was roughly 3.70%. By the end of January 2025 this rate had jumped to over 4.50%. Investors are still concerned about future inflation and are adopting a wait and see attitude. As of July 5, 2025, the 5 year Treasury is at 3.938% and the 10 year Treasury is at 4.328%.
Lending Nationwide from $1,500,000+
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Commercial Real Estate Loan Types
Commercial Mortgage Press Releases
Commercial Mortgage Loan
Bridge Apartment Loan
$9,000,000 Abilene, TX
Commercial Mortgage Loan
Apartment Loan
$2,199,000 Morgantown, WV
Commercial Mortgage Loan
Apartment Loan
$1,519,000 Barberton, OH
Commercial Mortgage Loan
Apartment Loan
$7,172,400 Wichita Falls, TX
Commercial Mortgage Loan
Self Storage Loan
$6,700,000 Victoria, TX
Commercial Mortgage Loan
Apartment Loan
$2,300,000 Chicago, IL
Commercial Mortgage Loan
Apartment Loan
$2,300,000 Bayonne, NJ
Commercial Mortgage Loan
Apartment Loan
$6,827,000 Westchester, PA
Commercial Mortgage Loan
Apartment Loan
$2,776,491 Chicago, IL
Commercial Mortgage Loan
Apartment Loan
$8,650,000 Hamden, CT
Commercial Mortgage Loan
Apartment Loan
$5,999,000 Valparaiso, IN
Commercial Mortgage Loan
NNN Lease Loan
$2,782,000 Goodlettesville, TN
Commercial Mortgage Loan
Apartment Loan
$8,345,000 Montclair, New Jersey
Commercial Mortgage Loan
Apartment Loan
$5,932,000 Nederland, Texas
Commercial Mortgage Loan
Apartment Building Loan
$4,620,000 Crystal Lake, IL
Commercial Mortgage Loan
Apartment Loan
$3,778,000 Metairie, LA
Commercial Mortgage Loan
Apartment Loan
$2,812,000 Duluth, MN
Commercial Mortgage Loan
Apartment Loan
$4,400,000 Manhattan, MT
Recent Closings
Our Most Popular Commercial Mortgage Loans
Freddie Mac Multifamily Loans
Freddie Mac multifamily loans offer incredible financing solutions to investors looking for apartment loans. They provide both fixed rate and floating rate multifamily loans to acquire or refinance a wide variety of multifamily properties. These apartment building loans are used to finance properties such as market-rate apartments, student housing, senior housing, and affordable housing. While Freddie Mac multifamily loans have always been one of the industry's most aggressive financing source for larger apartment loans, Fannie Mae used to really dominate the smaller balance market. However, in 2014, Freddie Mac launched their Freddie Mac Small Balance Multifamily Loan program to compete with Fannie Mae in the small balance market. For eligible borrowers, Freddie Mac apartment building loans offer some of the best terms and rates in the market. Check out today's Freddie Mac multifamily loan rates now or see commercial mortgage rates for all the loan types we serve.
Fannie Mae Multifamily Loans
Fannie Mae multifamily loans provide mortgage capital for conventional, affordable housing, cooperatives, senior housing, student housing, manufactured housing communities and mobile home parks nationwide. The Fannie Mae apartment loan program offers many distinct advantages over traditional bank programs, including long-term fixed rates up to 30 years, high LTV ratios up to 80%, and nonrecourse financing (no personal guarantee to the principals). Fannie Mae Multifamily provides long term permanent mortgage loans for the purchase or refinance (cash-out OK) of apartment properties nationwide. Fannie Mae Multifamily loans can be used to finance apartment buildings with at least 5 residential units. No more than 20 percent of net rentable area can be leased out to commercial tenants. Fannie Mae Multifamily is an industry leader in apartment building loans and their terms are incredibly difficult to beat. Check out today's Fannie Mae multifamily loan rates now or see commercial mortgage rates for all the loan types we serve.
Apartment Building Loans
For the most accurate and up-to-date information on multifamily rates, rental market trends, and investment opportunities, select your state from the dropdown menu below:
Multifamily financing continues to be a major source of our commercial mortgage lending activities. A strong rental market and low vacancies allow us to be very aggressively priced on apartment building loans. We have a large array of lending programs to cover almost every possible scenario – whether you own an urban hi-rise apartment or a suburban garden apartment, we have the best deals for investment property loans in the market. We service large companies that are looking for large loans, as well as small owners that only own one building. Everyone's needs are different, and we will work with you to find the best commercial mortgage lender to custom tailor an apartment loan that suits your individual needs. We lend nationwide and our minimum loan size is $1,500,000. We will also consider credit that is not perfect. Check out today's multifamily loan rates now or see commercial mortgage rates for all the loan types we serve. We provide apartment loans throughout most of the United States.
Commercial Mortgage Loans
For the most accurate and up-to-date information on rates, rental market trends, and investment opportunities, select your state from the dropdown menu below:
Commercial mortgage loans consist of both owner-occupied and investor commercial mortgage loans. We provide commercial mortgage purchase loans and commercial mortgage refinancing. Owner occupied properties are those properties where the owner of the property uses the commercial property for his/her own business. Some examples include: medical offices, retail stores, motels and special-use properties like gas stations. Investor properties are those properties where the owner has purchased the property for investment and rents out the property to one or multiple tenants. Some examples include: office buildings, retail centers and warehouse properties. Regardless of which type of property you own, we have the right commercial mortgage loan, and the right commercial mortgage lender to suit your individual needs. For more information, please give us a call at 1-877-548-9454, or fill out our Free Loan Request form. Also, don't forget to check out today's commercial mortgage rates. We provide commercial real estate loans throughout most of the United States.
FHA Multifamily Loan
FHA multifamily loans offer some of the best financing options to multifamily real estate investors and developers. While the FHA (Federal Housing Administration) doesn't directly make these loans, they do insure FHA multifamily loans made by third party lenders to real estate investors. The third party lender will process the loan in accordance with the FHA guidelines and will underwrite the loan in order to provide the insurance. FHA multifamily loan programs were instituted to help investors purchase and refinance multifamily properties. While many people think that the FHA will only insure affordable housing, the truth is that FHA multifamily loan programs offer a great option for investors looking to finance all kinds of multifamily properties across the United States. The FHA 223(f) multifamily loan insurance program is one of the best financing options in the market for multifamily investors. Check out today's FHA multifamily loan rates now or see commercial mortgage rates for all the loan types we serve.
HUD Multifamily Loan
HUD multifamily loans offer some of the best financing options to multifamily real estate investors and developers. While HUD (Department of Housing and Urban Development) doesn't directly make these loans, they do insure HUD multifamily loans made by third party lenders to real estate investors. The third party lender will process the loan in accordance with the HUD guidelines and will underwrite the loan in order to provide the insurance. HUD multifamily loan programs were instituted to help investors purchase and refinance multifamily properties. While many people think that HUD will only insure affordable housing, HUD multifamily loan programs offer a great option for investors looking to finance all kinds of multifamily properties across the United States. The HUD 223(f) multifamily loan insurance program is one of the best financing options in the market for multifamily investors. Check out today's HUD multifamily loan rates now or see commercial mortgage rates for all the loan types we serve.
CMBS Loans
CMBS loans are another major source of mortgage capital for multifamily investors. CMBS loans, otherwise known as commercial mortgage backed security loans, market through Wall Street investment banks. CMBS lenders make individual CMBS loans to borrowers which are then packaged and sold to investors as securities. CMBS loans provide interest rate yield to their investors while contributing liquidity to the capital markets. This liquidity in the markets means lower commercial mortgage rates to borrowers. Borrowers are well served when there are multiple sources of capital in the market. There are many reasons for commercial real estate investors to consider CMBS loans. CMBS loans are available to a wide array of borrowers including those who may be turned down by traditional lenders. They also have less strict net worth and liquidity requirements than other lenders. Check out today's CMBS loan rates now or see commercial mortgage rates for all the loan types we serve.
Freddie Mac SBL
The Freddie Mac SBL multifamily loan program offers many unique and beneficial features for apartment purchases and refinances, with a minimum loan size of $1,500,000. The loan application process is simple and streamlined. As an example, tax returns for the borrower and the property are not required. Loans typically close in 45 days and the program has much lower costs than other government or agency programs.
Other Types of Commercial Mortgages
At Select Commercial, we offer commercial mortgage loans for all types of commercial properties. We lend on investor properties that are rented out to others, such as, apartment buildings, office buildings, and retail shopping centers, as well as owner-user properties used by a self-employed business owner such as, retail stores, gas stations, medical offices, and motels. Every different property type requires a specialized analysis of the property and the borrower. We have extensive experience lending on all different types of properties.
Car Wash Loans – we finance self-service and full-service car washes, as well as many other automotive related properties, such as repair shops, auto-body shops, service centers, tire shops and muffler shops.
Gas Station Loans – we have extensive experience lending on branded and unbranded gas stations.
Mobile Home Park Loans – we have special lending programs for mobile home parks, manufactured housing communities, trailer parks and recreational vehicle parks.
Self-Storage Loans – we finance all types of storage facilities, including: indoor climate-controlled facilities, traditional outdoor facilities, RV and vehicle storage facilities and boat storage properties nationwide.
NNN Lease Loans – we have special expertise in financing single-tenant NNN lease properties, including: drugstore chains, dollar stores, national restaurants and big box retailers.
Hotel Loans – we finance full service nationally flagged hotels nationwide.
Motel Loans – we finance flagged and unflagged motels, including seasonal or vacation area properties.
1031 Exchange Financing - we specialize in providing funds to help investors perform 1031 Exchanges by allowing them to swap an existing property with a new (and often larger) replacement property.
Underlying Co-op Loans – we provide underlying loans on cooperative buildings in major urban markets. We do not finance individual units, but provide the underlying loan for the co-op corporation.
CMBS Loans – Commercial Mortgage Backed Security Loans also known as CMBS loans are pooled together in a package with many like kind loans and sold to investors as bonds.
Things To Know About Commercial Real Estate Financing
What you need to know about obtaining an apartment loan and apartment loan rates:
Select Commercial specializes in financing apartment loans and has excellent apartment loan rates for purchase or refinance. Many clients ask us for advice when it comes to understanding apartment loan fundamentals, especially as it pertains to valuing apartment properties. We start by looking at the apartment rent roll to see if the units are all occupied (vacancy is usually a red flag) and to see if the units are rented at market levels. Underwriting an apartment loan requires income or cash flow and looking at the rent roll is the first place to start. Next, apartment lenders look at the operating statement. An operating statement will show actual rent collections and all expenses. The difference is the apartment’s net cash flow. The net cash flow will determine the size of the apartment loan. Apartment lenders look for solid and stable income when underwriting an apartment loan. Apartment properties that have high vacancy rates or display un-stabilized cash flow will probably be better with an apartment bridge loan until the property qualifies for a standard apartment loan. Also very important to apartment lenders is the location and condition of the property. Lenders prefer properties in urban and suburban areas and will take a hard look at apartment loan requests in rural or tertiary markets. Apartment properties in good or excellent condition are preferred. Properties in need of renovations or displaying deferred maintenance will be highly scrutinized.
Select Commercial can help you with NNN Lease Loans.
We are often asked questions from our clients about investing in Net Lease or NNN properties. Investors love the idea of investing in a property and not having to be responsible for property expenses. We often tell our clients interested in NNN lease properties to, first and foremost, look for high rated credit tenants. Lenders are not bullish on retail right now. However, if you find a highly rated credit tenant with a corporately guaranteed lease (such as Walgreens, CVS, Dollar General, etc.), great rates and terms are available. Secondly, it is crucial to look for properties with longer leases. No lender is interested in financing a property with a short-term lease. We typically like to see at least 10 years remaining on the primary lease. Lastly, scrutinize the location of the property. You are much more likely to get great rates and terms in highly rated markets than in secondary or tertiary markets. Please contact us for any specific questions regarding Credit Tenant Lease Loans.
What you need to know about obtaining a commercial real estate loan for an owner-occupied property.
Owner-occupied properties are properties that are used to house an owner’s business. Examples include medical offices, restaurants, general offices, retail stores, motels, etc. Commercial real estate loans are loans that are used to finance the acquisition of these properties or refinance these properties (often to free up equity for other business purposes). The self-employed borrowers that own these properties need to work with lenders who understand and have experience lending to small businesses. Many commercial mortgage lenders do not focus on these properties as they lack the necessary experience working with small business owners. When commercial real estate lenders look at an investment property, they look at the rents collected, the expenses necessary to run the property, and calculate the net operating income. This NOI is used to determine the property’s ability to cover the mortgage debt. With properties that are used by the owner, the calculations are different. The lender must understand the entire business operation to determine what income and expenses are attributable to the property and to the business separately. The underlying business must be healthy to take on the debt of a commercial real estate loan. In addition to analyzing the income, lenders also need to understand the owner occupant’s credit scores and ratings. The stronger the credit scores, the less risky the loan. Commercial mortgage rates will often be determined by analyzing both the business’s income and the credit of the applicant. At Select Commercial, we have over 30 years of commercial real estate financing experience lending to small business owners. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.
Select Commercial can assist you with your 1031 Exchange Financing needs!
Ordinarily, when an investor sells an investment property, the profit realized is subject to capital gains taxes. However, if the investor exchanges the property for another property, the IRS will allow the investor to defer capital gains taxes. This process is called a 1031 Tax Free Exchange. Select Commercial specializes in helping investors utilizing a 1031 Exchange obtain commercial mortgage financing to facilitate the new purchase. Please contact us for more details on 1031 Tax Free Exchange Financing. (Always consult your tax advisor for specific advice when it comes to your tax situation).
CMBS loans are one of the most popular types of commercial real estate loans in the market.
CMBS stands for commercial mortgage backed security. As such, these loans are pooled together in a package with many like kind loans and sold to investors as bonds. CMBS loans typically have softer requirements than many traditional lenders. For example, problem borrowers with low net worth/ liquidity or credit issues can often qualify for CMBS loans. These loans are typically offered as fixed rate terms for 5, 7, or 10 years. CMBS loans can be amortized over 30 years and often can qualify for interest only terms. In addition, these loans are non-recourse and assumable.