Apartment Loans from $1 Million to $25 Million+
Select Commercial specializes in apartment loans. Contact us today to see how we can get you the best apartment loan rates available.
|Apartment Loan Rates Over $6,000,000||Rates (start as low as)||LTV|
|Apartment Loan 5 Year Fixed Rates||4.33%||Up to 80%||Get Free Quote|
|Apartment Loan 7 Year Fixed Rates||4.39%||Up to 80%||Get Free Quote|
|Apartment Loan 10 Year Fixed Loan||4.49%||Up to 80%||Get Free Quote|
|Apartment Loan Rates Under $6,000,000||Rates (start as low as)||LTV|
|Apartment Loan 5 Year Fixed Rates||4.46%||Up to 80%||Get Free Quote|
|Apartment Loan 7 Year Fixed Rates||4.52%||Up to 80%||Get Free Quote|
|Apartment Loan 10 Year Fixed Rates||4.62%||Up to 80%||Get Free Quote|
Our Apartment Loan Benefits
Apartment Loan rates start as low as 4.33% (as of May 16th, 2022)
• 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!"
We are experts in securing apartment loans and mixed use mortgages. Sometimes referred to as multifamily loans, these types of loans have traditionally constituted the largest portion of our total business volume. We have information that can help you with How to Buy an Apartment Building. Mixed use mortgages are used for buildings that offer multifamily units along with a business usually located on the first floor. 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 $1,000,000. See our article published in a major magazine on How to Invest in an Apartment Building and how to get the best rate on a apartment loan. 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. Whether you are purchasing or refinancing, we have the right solutions available. We will entertain loan requests of all sizes, beginning at $1,000,000. Get started with a Free Loan Quote.
Apartment Loan Helpful ArticlesHow 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?
How to Buy an Apartment Building
What Are Commercial Mortgage Lenders Looking for These Days
How to Qualify for a Great Rate When Refinancing Your Apartment Building
Apartment Loan Outlook 2022Apartments Show Record Strength as Household Growth Performs at Record Levels In 2022 we expect strong housing demand to surpass existing supply. 2021 was a very strong year for apartment owners. After the difficulties of 2020 due to the pandemic caused much disruption, rapid job creation and a strong economic reopening led to a surge in apartment rentals. A record number of units were rented in 2021, driving the national apartment vacancy rate down to the lowest year-end level in more than twenty years. Average multifamily rental rates increased by record setting margins, as well. Apartment profitability is expected to increase even further in 2022, although probably at a slower pace following the uncertainty observed in 2020 and 2021, as the economy often started up and slowed down quickly with each new strain of the Coronavirus pandemic. As the economy continues its stabilized recovery, apartment demand will continue to grow. Strong household formation will drive rental increases above the record 400,000 apartments expected to hit the market in 2022. Apartment availability among top-of-the-line Class A units began 2022 at one of the lowest rates in over twenty years. Rental demand for Class B and C units, will also strengthen in 2022 as increasing prices prompt some apartment renters to give up more expensive apartments. Raw material and labor shortages also raise risks of construction delays in the home buying market, keeping many would be buyers in apartment rentals. As such, all multifamily properties will perform well in 2022.
Urban areas continue to recover even as suburban demand gets stronger. The Coronavirus pandemic and associated lockdowns caused a movement, or transition, of households from densely populated urban areas and large urban cities to more suburban and rural settings and secondary market locations. Vacancy rates in the densely populated business districts of the country’s large markets rose 230 basis points in 2020, versus a 10 basis point vacancy rate increase in smaller suburban submarkets in smaller cities. Apartment availability has continued to decrease in these secondary market locations even though the worst of the pandemic has passed. Not including immigration, an estimated 44 million people will enter their 30s over the next 10 years, a stage of life associated with the beginning of families, which is the main driver of apartment demand. Increasing household size causes renters to look for larger accommodations, which are more affordable in suburban and rural locations. While this demographic change will continue in 2022 and beyond, urban areas are also recovering quickly as offices in downtown areas continue to reopen. The 2020 shock to downtown markets changed course by the third quarter of 2021, with further improvement anticipated in 2022. The reopening of retail establishments such as bars, restaurants and entertainment venues, the continuing return to offices, and a new group of college graduates all point to strong demand for the downtown apartments in urban locations.
2022 National Apartment OutlookFederal rental aid during the pandemic prevented dire eviction projections. Historically, the vacancy rate in Class C apartments has tracked well with the unemployment rate. During the Coronavirus pandemic, however, when unemployment hit 14.8 percent, Class C vacancy stayed below 4 percent. Federal stimulus and eviction moratoriums kept many renters in their apartments even through layoffs, furloughs, and job losses. While eviction moratoriums have ended, over $40 billion in rental aid is being distributed which is helping to prevent large migration out of apartment units.
Housing demand in 2022 is expanding into alternative dwellings. Households are being created faster than new construction can accommodate, forcing some apartment renters to look at other choices. Millennials seeking larger space at lower costs are considering single-family home rentals while those who are priced out of Class C units are looking more at manufactured home communities and mobile home parks.
The ability to work from home offices and pet-friendly accommodations are gaining importance in 2022. Even though the pandemic situation is improving, work habits adopted during the pandemic will not be so easily reversed. The increase in workers who still work from home has caused some renters to look for greater apartment square footage as well as common spaces within the building in which to co-work with others. A large increase in pet ownership caused by lockdowns also now causes strong demand for pet-friendly properties.
The strong apartment market nationally is causing many investors to consider investing in apartments and is causing strong demand for apartment loans. Apartment loan rates remain low as we enter 2022, but the Federal Reserve has indicated their desire to raise rates in 2022 to curtail inflation. We are watching closely to see what happens with apartment loan rates this year.
Apartment Loan Outlook 2021
The COVID-19 pandemic affected the ability of young graduates to find jobs and move into apartments of their own. The demand for apartment rentals is usually fueled by young graduates entering the workforce and moving into rental apartments. Many young adults lived with their parents or friends during the pandemic and into early 2021. As 2021 progressed, many companies reopened their offices and began hiring again which generated record levels of new apartment rentals. This trend should continue through late 2021 as more new workers are able find jobs and move into their own apartments. Many of these new multifamily units are in metro areas of the sunbelt states as workers have been moving out of colder urban areas in favor of more suburban warmer climates.
The tight market in 2021 for new home purchases has caused many would be homebuyers to continue renting. Prices for existing homes have risen due to lack of inventory and the cost of construction has skyrocketed due to increased costs for raw materials. The high cost of purchasing a new or existing home is keeping the demand for rental units very strong in 2021.
During the pandemic, when workers were either out of work or working from home, many people moved out of densely populated urban areas in favor of suburban locations. In 2021, as more employees are returning to their offices, we are seeing demand pick up once again for rental apartments in urban locations. In addition, as more and more retail and dining locations reopen in downtown areas, we expect to see a return of employees to these areas.
During the pandemic, the CDC and local governments instituted a moratorium of evictions. This caused many landlords to suffer economic losses and depressed the value of apartment properties. In 2021, as these moratoriums start to expire, we expect to see strong demand from investors for these properties.
Nationwide, the first half of 2021 saw more than 175,000 new apartments completed and a total of 363,000 for the previous 12 months. A high percentage of these new units were in Texas and other sunbelt states, as more and more people are relocating to warmer climates. Occupancy rates and asking rents have been lower in larger urban markets in the Northeast and other colder climates, while occupancy rates and asking rents have been increasing in these warmer sunbelt climates. These 2021 trends have definitely been driven by the COVID-19 pandemic and we are watching these trends closely to see if these trends persist after the pandemic is over. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.
Apartment Loan Economic Outlook for 2021
For various reasons, the 2020 American economy has taken a big hit recently. With the current outbreak of Covid-19, the overall economy has been in flux. The stock market has been fluctuating wildly and commercial mortgage interest rates have been severely impacted. Huge metros such as New York have all but shut down much economic activity and entertainment. In this unsteady climate, many investors are scared to purchase commercial real estate and to take out commercial mortgages and multifamily loans. Apartment loan rates initially dropped to record lows at the beginning of the year, but since the pandemic, as lenders became more wary of a recession, apartment loan rates began to steadily rise. Currently, many lenders have put measures in place to significantly reduce the risk of multifamily loan lending. For example, many apartment loans undertaken in April have required significant debt service reserves and have been sized to lower LTV rates than in the past. Additionally, the oil industry has taken a big hit. Not only are people traveling less due to the pandemic, foreign countries like China and Russia are involved in a huge price war which is driving the price of oil way down. The international trade war has also continued to complicate our national economic outlook. Experts predict that this trade war will continue to be a massive wildcard for the American economy. While a phase one trade deal was reached and multiple tariffs were suspended in the second half of last year, negotiations are expected to continue further into 2020 and to taper growth. Declining global economies and the potential impact of Brexit are expected to further restrain our economic growth. The upcoming U.S. election in November 2020 is another factor that may cause market uncertainty, possibly deterring investor decision making.
Multifamily Mortgage Loan Overview 2020
It is very important for multifamily investors to understand the landscape of the national apartmentindustry. Experts have anticipated a slight rise in the national apartment vacancy rate in 2020. While some may think that this rise reflects diminishing demand, experts are convinced that it actually stems from a shortage of class B and class C apartments. Interested renters are expected to face difficulty finding an available apartment as workforce housing vacancy has dropped incredibly. While construction of new multifamily units will help a little, the largely Class A additions will not completely align with the needs of renters looking for more affordable apartment units. Given the high demand, many investors are still looking for apartment loans to purchase new multifamily properties. Although many markets have witnessed a revitalization of their urban centers, the larger national housing trends significantly favor suburban areas and investors are increasingly looking for multifamily loans / apartment loans to purchase properties in these locations. Millennials are now taking on significant lifestyle changes such as marriage and starting families. These people are looking to move into more suburban areas. When one compares the vacancy rate in urban and suburban areas over the past five years, the preference for the latter is clear. Over this time period the nationwide urban vacancy rate has decreased 20 basis points while the suburban vacancy rate has dropped 100 basis points. With regards to rent, experts anticipate that rent gains will differ significantly based on city and apartment class. Class C apartments are expected to rise the most with an anticipated 4.3 percent gain as vacancy for this class remains incredibly low. Growth in Class A and B apartment units are expected be more modest, with rates in the mid 3% range. While the expected national average rent growth for multifamily units sits at 3.8 percent national, several metros such as Las Vegas, Phoenix and Nashville are expected to surpass that number as they have benefitted tremendously from significant population additions employment growth. Although there are a lot of uncertainties in the market right now, multifamily investors are still actively in pursuit of apartment loans to help make their next purchase.
Apartment Loans in 2020
With regards to mortgage origination and apartment loans, low interest rates and strong multifamily performance are expected to help apartment building financing volumes grow. Experts predict that the origination volume in 2020 will increase by 5.7% to $390 billion. Market data indicates that cap rates have more room to decline, which will lead to increasing property values and should drive up origination volume. Rent growth is expected to moderate and vacancy rates will probably increase modestly over the rest of the year. As cap rates decline and market fundamentals improve property values are expected to rise and lead to higher origination volumes and more multifamily loans. Lifestyle preferences, demographics and the lack of available houses to purchase at lower price points will keep many potential home buyers in multifamily units. Given all of these metrics, investors are still very interested in taking out apartment loans to purchase properties in 2020.
States We Serve
Select Commercial Funding offers premium rates and terms on apartment loans throughout the United States. We strive to understand the ins and outs of each individual market in the country and to obtain the best financing for our clients no matter where the property is located. Our singular goal is to help you get the best possible apartment loan in any state throughout the US. Please click the links below to check out our loan programs in each state and do not hesitate to reach out with any inquiries!