Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Birmingham, Alabama
Birmingham Apartment Loans in 2026
Select Commercial specializes in Birmingham apartment loan solutions for local investors, plus apartment building financing for larger properties and portfolios, with rates as low as 6.16% and up to 80% LTV. For properties elsewhere in the state, see our Alabama apartment loans; for loans over $6 million, see Birmingham multifamily loans. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in Birmingham
Birmingham apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See Alabama apartment loans.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
Birmingham Apartment Loan Rates (Under $6 Million)
| Loan Type | Rate* | Max LTV |
|---|---|---|
| Apartment 5 Year Fixed | 6.16% | Up to 80% |
| Apartment 7 Year Fixed | 6.14% | Up to 80% |
| Apartment 10 Year Fixed | 6.16% | Up to 80% |
- Rates as low as 6.16% on Birmingham apartment loans
- Up to 80% LTV on apartment financing
- Terms and amortizations up to 30 years
- Purchase and refinance, including cash-out
- No upfront application or processing fees
- 48-hour written pre-approvals, no cost or obligation
Rates last updated August 8, 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 Birmingham Apartment Loan Programs
As a broker, we compare every program to find your best-fit Birmingham apartment financing. Typical starting points for properties under $6 million:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Fannie Mae Small Loan | 6.16%-6.95% | Up to 80% | Non-recourse, fixed to 30 yrs |
| Freddie Mac SBL | 6.15% | Up to 80% | $1M to $7.5M small balance |
| FHA / HUD | 6.12% | Up to 85% | Highest leverage, longest term |
| Bank / portfolio | 6.25%-6.50% | 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. For properties over $6 million, see our Birmingham multifamily loans.
2026 Birmingham Apartment Loan Market: Birmingham Apartment Market Steadies as New Supply Is Absorbed
Birmingham enters 2026 as a stable, affordably priced multifamily market where a wave of recent deliveries is being worked through and the construction pipeline has thinned to its lowest level in years. Steady metro job gains and a low unemployment rate continue to support apartment demand across the region. As new supply moderates, conditions are set to tighten again through the year.
Employment
The Birmingham metro added jobs over the past year, with total nonfarm employment reaching about 571,200 in May 2026, up roughly 0.6 percent from a year earlier, while the metro unemployment rate held at a low 3.2 percent. Growth was led by leisure and hospitality, government, and education and health services.
Construction and supply
Apartment construction has slowed sharply after a building surge, with roughly 2,200 units completed over the trailing year versus a long run annual average near 860, and the pipeline shrinking to around 516 units under construction by late 2025, the lowest total since 2019.
Vacancy
The influx of new deliveries pushed the metro apartment vacancy rate up to roughly 8.8 percent, giving renters more choices and more negotiating leverage in the near term.
Rent trend
The average apartment rent in Birmingham sits near 1,360 dollars per month, among the most affordable of any large US metro, with rents roughly flat to up about 2 percent over the past year as elevated supply kept growth in check.
2026 Birmingham forecast at a glance:
- A thinning construction pipeline should allow the market to absorb recent deliveries and tighten vacancy through 2026
- Continued metro job growth and low unemployment should sustain steady apartment demand
- Rent growth is expected to remain modest in the near term before returning toward historical norms
- Birmingham's affordability relative to national averages should keep drawing renters and investors
Birmingham Multifamily Loans (Over $6 Million)
For larger Birmingham apartment properties, we arrange multifamily loans over $6 million through Fannie Mae DUS, Freddie Mac, FHA/HUD and CMBS. These institutional programs offer non-recourse financing, up to 80% LTV and fixed terms up to 30 years, with even longer fully amortizing options through HUD.
See our Birmingham multifamily loans page for over-$6 million financing, or explore Fannie Mae and Freddie Mac agency programs.
Recent Apartment Loan Closings
A sample of apartment and multifamily loans we have arranged for investors nationwide.
Birmingham Apartment Loan Types We Serve
Whether you are purchasing or refinancing a Birmingham apartment building, we arrange financing for:
- Large urban high-rise apartment buildings
- Suburban garden apartment complexes
- Small apartment buildings with 5+ units
- Underlying cooperative apartment loans
- Portfolios of small apartment and single-family rental properties
- Other multifamily and mixed-use properties
We consider apartment loan requests of all sizes, beginning at $1,500,000.
Other Property & Loan Types We Finance in Birmingham
As a full-service commercial mortgage broker, we arrange Birmingham financing across every major property and loan type:
We consider commercial loan requests of all sizes, beginning at $1,500,000.
Birmingham Neighborhoods We Serve
Select Commercial provides apartment loans throughout Birmingham, Alabama and the surrounding area, including:
- Avondale
- Five Points South
- Highland Park
- Southside
- Forest Park
- Crestwood
- Woodlawn
- Norwood
- Ensley
- West End
- Titusville
- Fountain Heights
- Bush Hills
- Glen Iris
- North Birmingham
- Wylam
- East Lake
- Roebuck
For other cities in the state, see Alabama apartment loans.
Nearby Apartment Loan Markets
We finance apartment buildings nationwide. Explore related markets:
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 Birmingham Apartment Loan Quote
No cost, no obligation. Written answers within 48 hours on Birmingham 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