Baltimore Apartment Loans
Loans from $1 Million to $25 Million+

Baltimore Apartment Loan Rates - Rates updated September 25th, 2022

Baltimore Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 5.37% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 5.12% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 5.08% Up to 80% Get Free Quote
Baltimore Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 5.47% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 5.22% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 5.18% Up to 80% Get Free Quote
Baltimore Apartment Building Baltimore
Apartment Loan

Select Commercial has excellent Baltimore Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of Baltimore. Whether you are looking to finance a small apartment building, a complex with hundreds of units, or a co-operative, we can help you find the optimal financing solution to meet your Apartment mortgage loan needs. While we lend across the entire continental US, we are able to give our best rates and loan programs to certain areas that we feel are strong markets. Baltimore is one of the cities that we consider to be a premium market and we actively look to originate good quality loans here for our clients. We have a diverse array of many available loan products to help qualified Baltimore MD borrowers looking to purchase or refinance an apartment property. We offer apartment loans with terms and amortizations up to 30 years, recourse and non-recourse, and many options for prepayment. We typically approve Apartment building loans within 1 day and usually close within 45 days of application. Our clients love our simplified application process, 24-hour pre-approvals with no-cost and no-obligation, great rates and terms, fast closings and personalized service. If you are looking to purchase or refinance an apartment building, don't hesitate to contact us. For more information on multifamily loans, check out how to get the best rate on a multifamily loan and how to get the best rates on an apartment refinance.

Baltimore Apartment Loan Benefits

Baltimore Apartment Loan rates start as low as 5.08% (as of September 25th, 2022)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multifamily financing 
• Terms and amortizations up to 30 years 
• Multifamily 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!"


Apartment Loan Basics

Baltimore Apartment Loan Types We Serve

If you are looking to purchase or refinance a Baltimore apartment building, don't hesitate to contact us. We arrange financing in the city of Baltimore for the following:

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

 

Apartment Loans - Lending Options

Baltimore 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 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
Uncomplicated Underwriting
How to Qualify for a Great Rate When Refinancing Your Apartment Building

Recent Closings

Baltimore Vacancy and Rents Baltimore Rent and Sales Trends

2022 Baltimore Apartment Loan Outlook

Leasing Activity Picks Up Downtown - Out-of-State Buyers Create Deals

Apartment availability remains near 20 year low. Baltimore’s apartment market stayed strong during the pandemic amid one of the worst economic periods in the city’s recent history. Demand for apartment rentals remained high in 2021, spurred by a resurgence of leasing activity in the central business district. As a result, citywide vacancy shrunk to the lowest rate since 2000. The State of Maryland recently said that it would relocate 3,300 state employees to the central business district, and employers such as T. Rowe Price have announced that employees will return to the office, a good sign for future demand in the downtown area. However, projections for population growth are well below the national average will likely curtail this momentum. The rate of absorption throughout the city is expected to decline and create more availability in 2022. Still, Baltimore remains affordable as compared to the Washington, D.C., market, and may attract apartment renters looking for less expensive housing if work-from-home trends continue. Additionally, new apartment additions will fall 40 percent below average, which should help moderate vacancy increases in 2022.

Solid apartment performance increases transaction sales volume and pricing. Tight market conditions and lower costs as compared to other large markets in the Northeast make Baltimore a target market for both local and out of state purchasers. Sales activity slowed temporarily during the Coronavirus pandemic but made a quick return, raising sales transaction levels in 2021 to one of the highest levels in the past 20 years. Competition for apartment properties is raising sale prices and pushing down cap rates, which average in the high-5 percent range. Purchasers have remained active in Downtown Baltimore, where economic performance is improving rapidly, and many opportunities exist. While fewer sales listings are common in Annapolis and Howard County, demand for apartment properties in these markets is good. Apartments there often have sale prices over $250,000 per unit, well above the Baltimore average of $147,000 per unit.

2022 Apartment Market Forecast and Baltimore Apartment Loan Economics

Baltimore has a National Multifamily Index rank of 44. Slow rent growth and higher vacancy generate a low ranking on this year’s list.

Employment in Baltimore is up 2.1%. Roughly 29,000 jobs will be added this year, placing total employment within 1.5 percent of the city’s pre-COVID level.

New construction expected to add 1,750 apartment units. The pace of new apartments in 2022 will slightly increase from the 1,700 units delivered in 2021. New apartment additions will expand the city’s apartment inventory by 0.7 percent in 2022.

Vacancy rates expected to climb 20 basis points. New apartments in 2022 will be slightly of net leases, creating some increase in availability. As a result, vacancy is expected to climb to 3.2 percent by the end of 2022.

Rental rates up 2.0%. A small rise in vacancy in 2022 will slow rent growth as compared to last year’s 9.9 percent rent gain. Still, the city’s average effective rent will increase to $1,550 per month.

Investment in Baltimore apartments. Improving renter demand in Downtown Baltimore will continue to attract investment activity to the downtown market, where first-year returns average in the mid-7 percent range.

Baltimore apartment loan rates will start to increase in 2022 as the Federal Reserve starts raising rates to slow the rate of inflation. We will be watching to see if Baltimore apartment loan rate increases will affect market activity in 2022.

All data provided by Marcus and Millichap

2021 Baltimore Apartment Market and Trends

The Baltimore apartment market has retained low vacancy in 2021 as leasing activity has resumed post COVID-19. In Q3 of 2020, development continued with the opening of about 1,000 multifamily rentals. That being said, last year’s annual total of new completions lagged behind the record 4,000 new units delivered in 2017. Baltimore’s absorption rate also recovered very well in the second half of 2020, as the city’s vacancy rate dropped 60 basis points to 4.3 percent. In addition, the market’s average effective rent rose 1.4 percent in the second half of 2020, led by a 1.8 percent increase among Class C rentals. Baltimore’s multifamily occupancy rate increased 60 basis points to 95.3%. This came in at over 80 basis points above the overall national occupancy rate.

The Baltimore multifamily market came out of the the COVID-19 pandemic with record demand for apartment housing. Baltimore absorbed over 5,230 multifamily units in the year ending Q1 2021. In the last two decades, the city only saw similar demand in the 3rd quarter of 2018. This demand in Baltimore has caused significant progress in other ways. Solid absorption pushed the occupancy rate to over 96% in April. This came in at 40 basis points above the national norm. In addition, rent growth grew 5.6% annually as of April, well ahead of the national rate of 1.7%.

2021 metrics look really good for the Baltimore multifamily market. Experts anticipate 37,200 jobs to be created, up 2.7%. 1,500 new units are expected to be completed and delivered to the Baltimore market in 2021. The city’s multifamily vacancy rate is down 30 basis points, to 3.8%. Additionally, the average effective rent is up 3.3% to $1,429 per month.

- Data provided by Marcus and Millichap

2021 Multifamily Outlook

  • Employment in the US is expected to show a 4.6% year over year increase with the creation of 6.5 million new jobs in 2021 which represents the largest annual increase in over three decades.  This is the result of businesses emerging from the Covid-19 pandemic.  Unfortunately, the US lost close to 9.4 million jobs during the pandemic.
  • Strong demand for apartments, as a result of increased employment rates, is expected to push national vacancy rates down to 3.9%, down from 4.4% in 2021.
  • Construction of new apartments in 2021 are expected to top 385,000 new units, an increase of 2.1% over last year’s record pace.  Rising labor and construction costs are starting to have an effect on new construction, however.
  • Following rent declines during the pandemic, average rental rates are expected to rise 6.8% in 2021 to $1,507 per month.  Landlords are able to raise rents dramatically due to decreased vacancy rates and the strong demand got rental housing.
  • 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.

    What Happened with Apartment Loans in 2020

    Baltimore Economic Trends Baltimore Economic Trends

    Stalwart Employers Underpin Historically Low Multifamily Vacancy; Investors Find Comparative Advantage in Baltimore

    Apartment vacancy drops to multiyear low amid moderated construction pipeline. Baltimore’s well-regarded educational institutions and healthcare providers, comprising about a fifth of the labor force, continue to hire thousands of personnel per year. These new job opportunities are supporting the formation of additional households, contributing to a steady increase in apartment rental demand that will drop vacancy to 4.3 percent in 2020. The number of multifamily units available has not fallen much below this threshold since 2000 when vacancy was 2.6 percent. Operations are also benefiting from a more modest apartment construction pipeline. Except for 2019, fewer units will come online in 2020 than during any other year since 2011. While not as many apartments will open within the city of Baltimore as previous years, a handful of large-scale projects are slated to deliver in surrounding towns. Multifamily projects with more than 300 units apiece will be finalized in the suburban settings of Ellicott City, Columbia and Towson, where demand for the new supply is underscored by below-market vacancy rates. This dynamic is also leading to above-market average apartment rent growth, contributing to a metro-wide appreciation in effective rates similar to 2019. Baltimore is a terrific place for investors to take out apartment loans to make their next apartment purchase.

    Regionally high yields and low entry costs have prompted investors to consider buying in Baltimore and to look for multifamily loans to finance their acquisitions. Transaction velocity continues to trend higher in Baltimore as both local and out of market investors find the metro to be a stable, lower-cost alternative to other major Northeast cities. Sales here have cap rates that average in the low-6 percent zone are also 100 basis points or higher than in the nearby gateway markets. Buyers are focusing on the same areas of Baltimore that have received attention in the past, namely downtown and in the northwest part of the city. Trades tend to occur in neighborhoods with above-average income levels, involving renovated Class B and C apartment properties that cater to young professional renters. While multifamily listings are few in Anne Arundel and Howard counties, there is also ample investor demand, reflected in above market per unit sales prices. Baltimore appears to be a great market for investors to finance their next multifamily purchase with a multifamily loan.

    2020 Baltimore Apartment Market Forecast

    Baltimore Completions vs. Absorption Baltimore Completions vs. Absorption

    Baltimore’s National Multifamily Index Rank is at 41, up 3 places. Vacancy declining below the U.S. rate and a higher average cap rate raise Baltimore’s standing in the 2020 NMI.

    Employment in Baltimore is up 0.6%. Approximately 8,900 jobs will be created in 2020 as total employment growth slows from the 1.1 percent recorded last year.

    Construction of apartments in Baltimore is expected to exceed 2,200 units. Baltimore’s apartment inventory will expand by a modest 1.0 percent in 2020 as annual completions fall below the cycle average of 2,600 units.

    The vacancy rate in Baltimore is down 10 bps. The net absorption of apartments will just surpass supply additions to lower the vacancy rate to 4.3 percent this year. In 2019, availability fell 80 basis points.

    Apartment rent in Baltimore is up 3%. Fewer deliveries compared with earlier in the decade and sub-5 percent vacancy will both help to raise the average effective rent to $1,391 per month in 2020 following a 3.3 percent increase last year.

    Baltimore remains a very strong city for apartment investments. Out-of-market investment into Baltimore is trending higher as buyers are obtaining assets in urban areas at higher yields and lower entry costs than in their home metros. This is a really good place for investors to look into obtaining apartment loans to acquire their next multifamily property.

    Data provided by Marcus & Millichap.

    Baltimore Vacancy and Rents Baltimore Vacancy and Rents

    Apartment Loan Trends in 2020

    At the start of 2020 the market outlook did not indicate any significant factors that would cause major trouble in the multifamily market. Market indicators suggested that demand for housing, especially for apartment rentals, would remain healthy, thus continuing to generate new construction of multifamily buildings. Both the high number of permits and starts over the past couple of years led experts to believe that developer confidence is very high in the multifamily market. Market experts predicted an annual completion of 340,000 apartment units over 2020, way above the 300,000-annual average for the past five years. Over the last couple of years, the multifamily market has seen absorptions outperform expectations due to both changes in lifestyle and demographic preferences and new supply has consistently taken longer to be built. These two factors have helped the market to perform stronger than expected in the past and should continue throughout this year. Market data indicated that rent growth would remain strong in 2020, growing 3.6% (which is above the historical average). In terms of mortgage origination, low interest rates and strong multifamily performance were expected to help loan volumes grow. Experts predicted that the origination volume in 2020 will increase by 5.7% to $390 billion. Market data indicated that cap rates have more room to decline, which would lead to increasing property values and should drive up origination volume. However, with the current outbreak of Covid-19, the overall economy has been in flux. The stock market has crashed 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 apartment loans. 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. Experts are hopeful that as the weather warms up and public health policy learns how to handle this pandemic, the economy should revert back to its pre-virus strength.

    Baltimore Apartment Loan Options

    Baltimore Freddie Mac Apartment loans

    Baltimore Freddie Mac Multifamily Loans provide mortgage capital in the secondary market for apartment building loans. Together, Fannie Mae and Freddie Mac control a very large portion of the multifamily loan market. Freddie Mac has a very aggressive program for small balance apartment loans (from $1,000,000 to $7,500,000). Some features of this program include:

    • Market size driven. Freddie Mac classifies loans by the size of the overall market: Top, Standard, Small, and Very Small. Rates are best in top market locations (major metropolitan areas).
    • Capped costs. Freddie Mac lenders often cap the closing costs at a fixed dollar amount, thereby lowering the overall cost to borrow money.
    • Flexible pre-pay penalties. Freddie Mac offers many options for pre-payment penalties, from yield maintenance to step-down to “soft” step-down.
    • Interest-Only (I/O) loans. Freddie Mac will allow payments consisting of only interest and no amortization of principal.
    • Fixed rate terms. Freddie Mac offers fixed rates of 5, 7, and 10 years, followed by an adjustable period. These loans are called Hybrid/Adjustables. Loans have a 20 year term and a 30 year amortization schedule.

    Freddie Mac Loan and Rate Information


    Baltimore Fannie Mae Apartment loans

    The Baltimore Fannie Mae multifamily loan platform is one the leading sources of capital for Baltimore apartment building loans in the US. Fannie Mae is a leader in the secondary market – meaning they purchase qualifying apartment loans from leading lenders who originate these loans for their borrowers. Fannie Mae purchases loans secured by conventional apartments, affordable housing properties, underlying cooperative apartment loans, senior housing, student housing, manufactured housing communities and mobile home parks on a nationwide basis. The Fannie Mae platform has many benefits, including:

    • Long term fixed rates and amortizations. Fannie Mae allows terms and amortizations of up to 30 years. Most banks offer only 5 or 10 year fixed rates and 25 year amortizations.
    • Non-recourse options. Most banks will require the borrower to sign personally for the loan. Fannie Mae offers non-recourse apartment loans.
    • Lending in smaller markets. Many national lenders do not like to lend in rural or tertiary markets. Fannie Mae is a good option for these loans.
    • Assumability and Supplemental Financing. Fannie Mae allows their loans to be assumed by a qualified borrower. They also have a program which allows borrowers the ability to come back and borrow additional funds during the life of the loan (subordinate financing).

    Fannie Mae Loan and Rate Information


    Baltimore 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.

    Learn More About FHA HUD Multifamily Loans

    Baltimore Apartment Lending with Banks and Other Programs

    While the agencies (Fannie Mae, Freddie Mac and HUD) offer some excellent programs, not every apartment loan applicant qualifies for these programs. We have many excellent choices for these loans with our correspondent banks, credit unions, insurance companies and private lenders. Some examples of these loans include:

    • Baltimore Multifamily loans that require flexible underwriting or those that don’t meet standardized criteria.
    • Properties in less than desirable markets, or those that require repairs or updating.
    • Properties that don’t cash flow according to industry guidelines or lack stabilized cash flow.
    • Borrowers with past credit issues, including foreclosures, short sales, or judgements.
    • Borrowers who are not US citizens.

    Whether you are purchasing or refinancing, we have the right solutions available for your multifamily mortgage loans. We will entertain apartment loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.

    Baltimore Apartment Building Loans

    Select Commercial provides Apartment Loans and multifamily loans throughout Baltimore, Maryland including, but not limited to, the areas below.


    • Inner Harbor • Clifton Park • Bellona-Gittings • Federal Hill • Brewers Hill • Biddle Stree • Downtown • Carroll-Camden Industrial Area • Cameron Village • Canton • Barclay • Cedonia • Felis Point • Dorchester • Garwyn Oaks • Mount Vernon • Bolton Hill • Tipton County • Carroll Park • Cedarcroft • Franklintown