Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Texas
Texas Apartment Loans
Select Commercial arranges Texas apartment loans from $1,500,000, up to 80% LTV, with rates as low as 5.67%. We compare Fannie Mae, Freddie Mac, FHA, bank and bridge programs to fit your property. On larger balances, see multifamily loans. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in Texas
Texas apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See Texas commercial mortgages.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
Texas Apartment Loan Rates
Rates updated as of August 30, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.07% | Up to 80% |
| 7 Year Fixed | 6.17% | Up to 80% |
| 10 Year Fixed | 6.25% | Up to 80% |
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 5.67% | Up to 75% |
| 7 Year Fixed | 5.77% | Up to 75% |
| 10 Year Fixed | 5.85% | Up to 75% |
- Streamlined underwriting for institutional multifamily
- Cash-out refinances are acceptable
- Interest-only and non-recourse options
- Minimum 1.25x debt-service-coverage ratio
Rates last updated August 30, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Compare Texas Apartment Loan Programs
As a broker we compare every program for your best-fit Texas apartment financing:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Fannie Mae Small Loan | 6.07% | Up to 80% | Non-recourse, fixed to 30 yrs |
| Freddie Mac SBL | 6.15% | Up to 80% | $2M to $10M small balance |
| FHA / HUD | 6.12% | Up to 85% | Highest leverage, longest term |
| Bank / portfolio | 6.25% | Up to 75% | Flexible, value-add |
| Bridge | 9.00% | Up to 80% LTC | Reposition, lease-up |
Most apartment lenders look for a debt-service-coverage ratio (DSCR) of at least 1.25x.
2026 Texas Apartment Loan Market
Texas spent three years absorbing the largest apartment construction wave in the country, and 2026 is the year it recedes. Roughly 93,000 units were delivered statewide in the twelve months through December 2025. The forecast for the twelve months ending December 2026 is fewer than 35,000, an addition of about 1.4% to a statewide inventory of 2.55 million apartment units, with average effective rent finishing 2025 near $1,440 a month (Texas Real Estate Research Center, January 2026).
What that means for your loan. Lenders underwrote the supply wave conservatively and are only now giving credit back. Concessions have been running six to eight weeks of free rent across Texas, and as much as ten to twelve weeks in the softest submarkets, with the Dallas Fed expecting them to persist through mid-2026 (March 2026). A concession shows up in effective rent but not in the rent roll, so the gap between the two is the first thing an underwriter looks at on a Texas apartment complex today.
The pipeline is closing. Multifamily permits have fallen across every major Texas metro and now sit only slightly above pre-pandemic levels. Vacancy has improved since its mid-2024 peak, and absorption is catching deliveries in the metros that did not overbuild. For an owner, that is the argument for locking a longer fixed term now rather than betting on another year of soft rents.
Across Texas we arrange apartment building loans from $1,500,000 through agency, bank, FHA and bridge programs. Your rate and leverage follow the property’s trailing cash flow, not your personal income.
Texas Metro Markets We Finance
Texas is not one apartment market. It is five or six that happen to share a state line, and supply, vacancy and lender appetite look nothing alike in Houston and Austin right now. An apartment mortgage here gets structured to the submarket. These are the markets we work in most, each linked to our local page.
Dallas and Fort Worth
The largest apartment market in the state and the one still working through the most inventory. Vacancy ran 12.2% in the first quarter of 2026, with net absorption near 5,100 units against 7,300 delivered and roughly 30,200 units still under construction. Asking rents slipped 2.1% over the year while investors paid a median around $183,000 per unit at a 5.8% cap rate (Q1 2026). Developers here started about two apartments for every new household this cycle. A stabilized building with a clean rent roll draws competitive agency quotes; anything in lease-up should expect bank or bridge pricing until occupancy proves out.
Dallas · Fort Worth · Arlington · Plano · Irving · Garland · Frisco · McKinney · Carrollton · Grand Prairie · Mesquite
Houston
The metro that showed the most discipline during the building boom, and it is being rewarded. Vacancy fell 40 basis points in the second quarter of 2026 to 7.1%, the largest single-quarter improvement in nearly five years, on net absorption above 6,500 units, up more than 60% from the same quarter a year earlier. Rents were flat on the quarter and slightly ahead of last year, and sales activity is running 31% above 2025 year to date (August 2026). Houston is currently the Texas market where multifamily lenders are most willing to stretch on proceeds.
Austin
The market that overbuilt hardest and is turning first. Austin accounts for roughly 30,000 of the approximately 135,000 surplus units Texas added between 2020 and 2024, which is 22% of the statewide surplus on 13% of the inventory, and builders here started about four apartments for every new household. The correction is visible: vacancy dropped 120 basis points in the second quarter of 2026, led by Class A, effective rent rose 1.8% and began reversing a three-year slide, and deliveries are projected to fall about 24% from their 2024 to 2025 peak. First-half transaction volume was the strongest since 2022 and cap rates have compressed (August 2026). Austin apartment complex financing is a question of timing the lease-up.
San Antonio and South Texas
San Antonio carries about 16,000 of the state’s surplus units, a heavier share than its size suggests, though its building response was more measured than Austin’s and rents have been among the softest in Texas. Along the border and the coast the picture changes again: smaller buildings, local ownership, and regional banks and credit unions that are active apartment building lenders here and compete hard on apartment loan rates because they know the collateral.
San Antonio · Corpus Christi · Laredo · Brownsville
West Texas and the Panhandle
El Paso, Lubbock, Amarillo and the Permian towns price on a different basis entirely: a lower cost per unit, higher cap rates and cash-on-cash returns downstate investors rarely see. Construction stayed limited through the boom so occupancy held up, and the same borrower often clears more leverage on an apartment building out here than on a comparable asset in Dallas.
El Paso · Lubbock · Amarillo · Abilene
Where we do not yet have a dedicated apartment page for a city, the link goes to our commercial mortgage page for that market, which covers apartment and mixed-use property alongside other commercial types.
Refinancing a Texas Apartment Building
Most Texas refinance calls we take in 2026 trace back to the same two years. Buildings bought or built in 2021 and 2022 were financed with floating-rate bridge debt on a lease-up assumption, and those loans are maturing into a market where rents came in flatter than the model said. If that is your situation, the work starts before you talk to a lender.
Start with the rent roll and the trailing twelve. Proceeds on an apartment complex refinance are sized off in-place income, so the current rent roll and twelve months of operating statements set your number before anything else is discussed. In Texas the concession line matters as much as the rent line right now: if you are giving eight weeks free, effective rent sits well under asking rent and the underwriter sizes on the lower figure. Owners who have burned off concessions and held occupancy are getting materially better terms than owners who have not.
Then read your existing note. Confirm the maturity date and whether prepayment is yield maintenance, a step-down or open. Starting six to nine months ahead of a balloon is almost always cheaper than negotiating an extension after it comes due, and it leaves room to shop more than one lender.
Then pick the program. A stabilized building with a clean rent roll usually prices best through agency financing, long fixed term and non-recourse. A property still filling up, or one mid-renovation, generally refinances into a bank or bridge loan first and moves to permanent debt once the numbers hold. Cash-out is available on most programs where the equity supports it, and Texas owners who bought before 2021 often have more of it than they expect.
Send the rent roll and the trailing twelve and we will underwrite the building the way the lender will, then come back with written options inside 48 hours at no cost. Texas apartment loans start at $1,500,000, whether it is a twelve-unit property in Lubbock or a garden complex outside Houston.
Texas Multifamily Financing
Borrowers ask us regularly whether they need an apartment loan or a multifamily loan. It is the same loan. Both describe financing on a building with five or more residential units, and we arrange it across Texas on everything from a small brick walk-up to a portfolio of garden communities.
Size does change who competes for it. On smaller balances the sharpest quotes usually come from Texas banks, credit unions and the agency small-balance programs, where a local relationship and a clean rent roll count for a great deal. As balances grow the field widens to Fannie Mae, Freddie Mac, FHA, life companies and CMBS, and multifamily loan rates tend to tighten because the loans are large enough to securitize. What comes with that is a heavier diligence package: full appraisal, property condition report, environmental review, and sizing driven by net operating income, debt service coverage and debt yield rather than a quick read of the rent roll.
Texas multifamily lenders are underwriting the supply picture directly at the moment, which makes submarket matter more than usual. The same building prices differently in Houston than in Austin. Send the rent roll and the trailing twelve months and we will tell you which multifamily lenders are sharpest on your property, and what multifamily financing looks like at that size.
Texas Apartment Loan Types We Serve
We arrange financing across Texas for:
- Urban high-rise apartment buildings
- Suburban garden apartment complexes
- Small apartment buildings with 5+ units
- Underlying cooperative apartment loans
- Portfolios of small apartment and rental properties
- Mixed-use and other multifamily property
Apartment Loans Across Texas
We arrange apartment loans in every Texas market, not only the metros above. Smaller cities and rural counties are financed through the same agency, bank and credit union programs, and a well-occupied building in a secondary market often draws better leverage than owners expect.
For larger balances see our Texas multifamily loans. For office, retail, industrial and owner-occupied property see Texas commercial mortgages, and nationwide we lend in most major U.S. cities.
Recent Apartment Loan Closings
A sample of apartment and multifamily loans we have arranged for investors nationwide.
Other Property & Loan Types We Finance in Texas
As a full-service commercial mortgage broker, we arrange Texas financing across every major property and loan type:
We consider commercial loan requests of all sizes, beginning at $1,500,000.
What Our Clients Say
“I am a veterinarian who purchased an existing practice. I was surprised to find a company that offered 100% financing at a good rate, with great terms and rates for medical office financing.”
Carol K. · Chicago, IL“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MAGet Your Texas Apartment Loan Quote
No cost, no obligation. Written answers within 48 hours on Texas apartment loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up
Texas City Spotlights: 2026 Apartment Market Notes
Beyond the major metros, we finance apartment buildings across Texas. Current market notes for cities where borrowers ask us to lend:
- Lubbock: stable and affordable heading into 2026, with limited new construction keeping conditions balanced; a new dairy processing plant adds about 600 jobs as it comes online in 2026, and statewide Texas job growth is forecast near 1.8%. See our dedicated Lubbock apartment loans page.
- Corpus Christi: median 1-bedroom rent about $974, down 8% year over year (Zumper, August 2026), a softer market where refinancing at better terms matters.
- Garland: median 1-bedroom rent about $1,195, up 5% year over year (Zumper, August 2026), a large Dallas-area suburb with steady demand.
National baseline for context: the U.S. median rent was $1,388 in July 2026, down 1.1% year over year, with rental vacancy near 7.2% (national rent report, July 2026). Each city above links to our local commercial mortgage page, and we finance 5+ unit apartment properties in every Texas market from $1,500,000.