Multifamily Loans

Multifamily loans, also referred to as apartment loans, have traditionally constituted the largest portion of our total business volume. We are experts in securing apartment loans and mixed-use mortgages. We have over 30 years of experience working on apartment loans. So, if you have a question about apartment financing and need a loan that is greater than $1,500,000, give us a call today at 516-596-8537.

Multifamily Loan Rates - Updated May 29th, 2023

Multifamily Over $6,000,000 Rate* LTV
5 Year Fixed 5.12% Up to 80%
7 Year Fixed 5.10% Up to 80%
10 Year Fixed 5.09% Up to 80%
Multifamily Under $6,000,000 Rates* LTV
5 Year Fixed 5.31% Up to 80%
7 Year Fixed 5.21% Up to 80%
10 Year Fixed 5.09% Up to 80%
*Rates start as low as the rates stated here. Your rate, LTV and amortization will be determined by underwriting. See commercial mortgage rates for all of the loan types we finance.

Our Apartment Loan Benefits

Apartment Loan rates start as low as 5.09% (as of May 29th, 2023)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Financing up to 80% LTV
• Terms and amortizations up to 30 years
• Long term fixed rates
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation

Recent TRUSTPILOT Reviews

Select Commercial Funding Reviews from TRUSTPILOT

A three year journey
"Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"

Frequently Asked Questions

What type of commercial property should I consider purchasing in 2023?

Inflation fears, high interest rates, and the prospect of recession have slowed the pace of the commercial real estate market considerably. Some property types are outperforming others. Apartment buildings in desirable neighborhoods are performing well, as owners have been able to raise rents and keep up with rising interest rates. Multifamily properties in smaller and less desirable areas, or areas where unemployment is rising, are not performing as well, as rent increases are harder to implement. In the office sector, only medical office buildings are generating lender interest. General office properties have underperformed the market as a result of the work from home policies established during the Covid-19 pandemic. Office demand is unlikely to return to pre-Covid levels making the office sector extremely hard to navigate right now. In the retail sector, essential service businesses, such as grocery stores and pharmacies, are performing well, while traditional brick and mortar retailers are still feeling the effects of Covid-19 and the competition from online retailers. Many malls are experiencing record high vacancy levels, and some are being repositioned for other purposes. In the industrial sector, we are seeing strong demand for warehouse and distribution space to accommodate the online retailers. Industrial space in urban markets and close to transportation are performing very well. We expect to see sales prices for underperforming properties to drop in 2023 as investors gravitate to better positioned properties.


There are many different types of lenders offering a myriad of different loan products to finance the acquisition or refinance of apartment properties nationwide. These lenders include agency lenders (Fannie Mae and Freddie Mac), local and national banks, insurance companies, credit unions and private lenders.

Most lenders write apartment loans for five, seven or ten years (fixed) with a 30 year amortization. It is also possible to obtain loans that are fixed for up to 30 years, although this is not the norm. Rates are typically based on a margin over the corresponding US Treasury rate.

Lenders offer non-recourse to strong borrowers and solid properties. The borrower will be expected to have strong credit, good net worth and liquidity, and experience owning and managing similar properties. The property will be expected to demonstrate solid long term positive cash flow, be in good to excellent condition, and be located in a strong market with low vacancy rates.

Apartment loans are typically screened and pre-approved in 2-3 days. Since lenders require appraisals, environmental and property condition reports, and title, closings will usually take 45-60 days from application.

Multifamily Loan Recent Closings

Apartment Loans

Apartment Loan Basics

Whether you are looking to finance a small apartment building, a complex with hundreds of units, or a co-operative looking for an underlying mortgage, we can help you find the optimal financing solution to meet your apartment loan needs. Our company has access to multiple capital sources, including: Fannie Mae, Freddie Mac, HUD, numerous local and national banks, Wall Street conduit lenders, Agency lenders, credit unions and insurance companies. We will entertain multifamily loan requests of all sizes, beginning at $1,500,000. We arrange financing for the following:

  • Large urban high-rise apartment buildings
  • Owner occupied multifamily financing
  • Suburban garden apartment complexes
  • Small apartment buildings containing 5+ units
  • Underlying cooperative apartment building loans
  • Portfolios of small apartment properties and/or single-family rental properties
  • Other multi-family and mixed-use properties

Our company has multiple capital sources and multifamily lenders for these commercial multifamily loans, including: Fannie Mae, Freddie Mac, FHA, national banks, regional and local banks, insurance companies, Wall Street conduit lenders, credit unions and private lenders. We provide apartment loans in the following areas. Whether you are purchasing or refinancing, we have the right solutions available. We will entertain loan requests of all sizes, beginning at $1,500,000. Get started with a Free Loan Quote.


What is the outlook for apartment lending in 2023?

The apartment market has been one of the strongest performing sectors of the commercial real estate market for a long period of time. The growing demand for apartment housing has fueled this market as a strong demand for housing continued unabated. Inflation and Federal Reserve interest rate hikes are slowing down the market pretty quickly. Slower hiring levels coupled with lower rates of household formation are further adding to a slower rate of growth in this sector. New construction from the last year or two will come on to the market this year just as overall demand is showing signs of weakening. We expect to see higher vacancy rates and slower rent growth as a result. On the other hand, higher costs of single-family homes and higher interest rates will keep more potential homebuyers in the rental pool, which should help mitigate potential slowdowns in the apartment market. During the pandemic, many urban renters relocated to warmer climates in the Sun Belt. Many of those cities recorded explosive rates of growth and tremendous increases in rental rates. This trend is not expected to continue this year. Higher interest rates and higher cost of living expenses might cause some renters to relocate from more expensing markets to less expensive and more rural or tertiary markets. Affordable Housing is the hot topic this year as President Biden’s Housing Supply Action Plan looks to lower the country’s affordability concerns.

2023 Economic Outlook

Apartment Loans - Lending Options

The national economy has rebounded nicely over the past two years following the Covid pandemic, however aggressive government spending has caused a period of rampant inflation. The Federal Reserve has acted aggressively to slow the rate of inflation by raising short term rates. These hikes in short term rates caused a dramatic rise in US Treasury rates, which in turn, has caused an increase in commercial mortgage rates. Employers have responded to rising costs by reducing staffing levels. We expect 2023 to be a year of net job loss and higher unemployment. This will translate into a slowing of wage growth. The labor market might contract significantly if the economy slips into a recession. Uncertain economic trends and higher expenses are slowing the rate of household formation after high levels in 2021 and the beginning of 2022. Higher residential mortgage rates should slow the residential single family home market. This will cause more families to remain as renters in apartment buildings. Even though fuel costs have trended down in 2022, the continuing war in Ukraine and OPEC production cutbacks could put upward pressure on these costs. Residential and commercial real estate values could suffer as higher interest rates decrease sales activity.

2023 Capital Markets Outlook

In May 2022, the Federal Reserve’s Open Market Committee began aggressively raising short term interest rates in order to combat high rates of inflation. The Fed began a quantitative tightening process and raised the target range of the federal funds rate from near zero at the beginning of 2022 to a rate of above 4.00% by the end of 2022. This was the fastest series of rate hikes in over 40 years. The speed of these rate hikes has left the markets in disarray as borrowers and lenders try to make sense of the new market realities. Continued, although slower rate increases, will continue to affect the markets in 2023. The Fed’s goal is to lower the rate of inflation without causing a recession. Higher interest rates cause commercial property owners to spend more of their cash flow on debt payments and limit their property’s overall profitability. Lower cash flow means that lenders are tightening their credit criteria, and are lending at much lower leverage rates than they were previously. Average loan to value rates are down and lenders are more cautious overall. There currently exists a disconnect between what sellers think their properties are worth and what buyers are able to offer. This has caused a slowdown in overall sales activity. The agency lenders (Fannie Mae and Freddie Mac) have seen a slowdown in overall deal volume and both are hyper-focused on providing financing for apartment properties that meet affordability requirements. New apartment construction is down this year as higher material costs and higher borrowing costs make new projects less attractive. Since most apartment leases are for a period of one year, landlords are finding it easier to implement rent increases, helping to keep this market sector healthy.

2023 Investment Outlook

Apartment properties have seen constantly lower cap rates for many years as price appreciation has soared. The Fed’s raising of interest rates is causing cap rates to rise as well, and price appreciation to slow or decline. Rising overall costs for fuel and building supplies is also eating into cash flow and causing further downward pressure on prices. Many apartment investors have begun 2023 defensively due to a weak economic outlook and uncertainty in the market due to global events. While sales activity is expected to slow, overall, the apartment market is healthier than other sectors of the commercial real estate market. The European Central Bank has been less aggressive than the Federal Reserve, contributing to a drop in the value of the euro against the US dollar. This may cause more investment by Europeans in dollar denominated assets such as US commercial real estate. Higher living costs and tightening cap rates in primary markets are causing investors to focus more of their attention and assets in smaller, or tertiary, markets. Investors are looking for opportunities in changing markets, such as those near new sources of transportation, near new stadium construction, or neighborhoods undergoing revitalizations.

2023 Housing Outlook

Elevated housing prices along with today’s much higher home interest rates have caused many potential homebuyers to remain on the sidelines and continue as apartment renters. The number of residential home listings is well below average levels and will likely remain low throughout the year. Likewise, economic concerns and reduced levels of hiring are causing many first time buyers to avoid the leap into home ownership. Higher living costs, higher interest rates and job uncertainty are causing many millennials and Gen Z renters to remain in the rental market for the time being. From a cost-savings approach, rental apartments have become more attractive as the cost between owning and renting now exceeds $2500 per month on average. One trend we have been witnessing since the pandemic began is the migration of people from urban markets in the north to Sun Belt locations. We do see a continuation of that trend. Another trend we are seeing is individuals who had been looking to purchase a single family home have decided to rent a home instead. These individuals are looking to get of their apartments but are not ready to commit to home ownership. Until either prices come down or rates ease, we see this trend continuing as well.

Apartment Loan Products

Freddie Mac Multifamily Loan

Freddie Mac Multifamily Loan Freddie Mac
Multifamily Loan
Freddie Mac is a government sponsored agency that offers 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.

Fannie Mae Multifamily Loan

Fannie Mae Multifamily Loan Fannie Mae
Multi Family Loan
Fannie Mae is one of the nation’s leading secondary market sources of capital for apartment building financing. Fannie Mae provides 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 there terms are incredibly difficult to beat.

FHA HUD Multifamily Loans

FHA HUD Multifamily Loan FHA HUD
Multifamily Loan
FHA HUD Multifamily Loans - HUD (Department of Housing and Urban Development) and FHA (Federal Housing Administration) insured multifamily loans are some of the best financing options for real estate investors and developers. While HUD does not directly make these loans, they do insure multifamily loans made by third party lenders to real estate investors. The third party lender will process the loan in accordance with the FHA HUD guidelines and HUD will underwrite the loan in order to provide the insurance. There are two primary types of HUD insured loans that multifamily investors can take advantage of. In 2021, HUD insured about 1,800 loans (worth over $29 billion) made to commercial real estate investors and developers. These loans were made on multifamily and healthcare properties all across the United States. HUD put a few new policies into place that made their loan insurance programs even more desirable for investors. HUD used to require developers of newly constructed apartment buildings to wait at least three years in order to be eligible to refinance their property into a HUD insured loan. In 2020, HUD did away with this rule- allowing developers to refinance right at stabilization. Many developers took advantage of this rule change in 2021, helping HUD achieve record loan volume year over year.

Underlying Co-op Loans

Underlying Co-op Loan Underlying Co-op Loan
Co-operative financing (or co-op financing) is a specialized niche within the apartment or multi-family financing sector. It would help to start with an understanding of what a underlying co-op Loan is and how it differs from a regular apartment or condominium. A co-op is a multi-family building which is owned by a co-operative association and managed or controlled by a co-op board. When a purchaser buys an individual co-op unit, he is not actually buying real estate. He is purchasing shares in the co-operative association and granted the right to occupy the apartment under a proprietary lease for that apartment. The physical units and all of the common areas are owned by the co-op association. Most co-ops have an underlying loan or underlying mortgage on the entire building. The monthly payment for this underlying loan is shared by all of the shareholders in the form of monthly maintenance. A portion of the monthly maintenance in a co-op is used to pay the principal and interest for the co-operative’s underlying mortgage. This has nothing to do with an individual loan that a unit owner might have with a local residential lender on his individual unit.

Apartment Bridge Loan

apartment bridge loan Apartment Bridge Loan
The effects of the last recession left a lasting impact on many commercial real estate markets. Many properties today are still underperforming or have maturing mortgage debt in excess of today’s available loan to value ratios. These properties may need expert restructuring and turn around in order to be refinanced in today’s market. At Select Commercial, we are able to provide short-term apartment bridge loans to aid the owners and purchasers of underperforming and un-stabilized properties. Our apartment bridge loans offer quick closings and may be used to acquire a property in foreclosure, lease-up an underperforming property, allow a borrower to take advantage of a discounted payoff, refinance a maturing loan, reposition a property, rehab a vacant property, pay back taxes and liens, meet seasoning requirements, meet tight closing deadlines, or take cash for tenant improvements.


CMBS loan CMBS Loan
Another major source of mortgage capital for apartment building loans is the commercial mortgage-backed securities market through Wall Street investment banks. CMBS lenders make individual CMBS loans to borrowers which are then packaged and sold to investors as securities. These 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. Eligible properties include Multifamily, Manufactured Housing, Office, Retail, Industrial and Self-Storage.



Apartment Loan Helpful Articles

How to Get the Best Rate on a Multifamily Loan
Fannie Mae and Freddie Mac 2022 Update
How To Get The Best multifamily mortgage Rates On An Apartment Refinance
What Do Underwriters Look for When Evaluating Apartment Loans?
What You Need to Know About Freddie Mac SBL Multifamily Loans
How to Calculate Debt Service Coverage Ratio for Apartment Loans
Apartment Occupancy Levels – Concern in Some Major US Markets
How to Invest in an Apartment Building
Are You Shopping for an Apartment Building Loan?
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