Bronx Apartment Loans

Bronx Apartment Loan Rates - Rates updated February 7th, 2023

Bronx Apartment Loan Rates Over $6,000,000	Rates (start as low as)	LTV
Apartment 5 Year Fixed Loan Rates	4.96%	Up to 80%	Get Free Quote
Apartment 7 Year Fixed Loan Rates	4.82%	Up to 80%	Get Free Quote
Apartment 10 Year Fixed Loan Rates	4.79%	Up to 80%	Get Free Quote
Bronx Apartment Loan Rates Under $6,000,000	Rates (start as low as)	LTV
Apartment 5 Year Fixed Loan Rates	5.12%	Up to 80%	Get Free Quote
Apartment 7 Year Fixed Loan Rates	4.98%	Up to 80%	Get Free Quote
Apartment 10 Year Fixed Loan Rates	4.98%	Up to 80%	Get Free Quote

Bronx Apartment Loan FAQs

How do we help our Bronx apartment loan clients get the best rate and terms?

Select Commercial has excellent apartment building and multifamily loan products and options available for owners and purchasers of multi-family and apartment properties throughout the borough of Bronx. 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. Bronx is one of the boroughs 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 Bronx NY 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.

Bronx Rental Property Loans

At Select Commercial Funding, we pride ourselves on offering some of the best financing options in the industry. We are proud to offer rental property loans for small balance multifamily and mixed-use properties in the Bronx. In addition, we offer some of the best options for DSCR loans and rental portfolio loans in the Bronx.

With interest rates on the rise, many investors have been looking to invest in 1-4 unit properties. We launched our Bronx DSCR loan program and Bronx rental loan program to meet our clients’ needs. We are offering incredibly competitive rates and terms to our clients seeking rental property loans for larger apartment buildings and smaller 1-4 unit properties.

Loan programs and highlights include:

Bronx Apartment Loan Benefits

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A three year journey
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Bronx Apartment Loan Types We Serve

If you are looking to purchase or refinance a Bronx apartment building, don't hesitate to contact us. We arrange financing in the borough of Bronx 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

 

Bronx 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

What are the market conditions expected for Bronx Apartment Loans in 2023?

Experts anticipate above average performance for the multifamily sector in 2023. Occupancy rates are expected to remain above 95% and rental rates are expected to grow by 4%. These figures are not as robust as the past couple of years, however, which saw vacancy rates under 3% and rent growth in the double digits. During the second and third quarters of 2022, leasing activity for apartment buildings was slow. This coincided with a solid pace of new multifamily deliveries to the market. The combination of slower leasing activity and heightened supply caused the overall vacancy rate to increase by 150 basis points in the middle portion of 2022. Throughout 2023, vacancy rates will likely continue to rise at a slower pace and move toward the 20-year average of 5%.

The overall multifamily housing demand is expected to remain strong in 2023. With inflation continuing to impact consumer spending, more and more renters are determining whether to renew their leases. While new leasing activity stalled throughout the middle portion of 2022, the overall multifamily demand remained pretty strong. The rise in home prices and residential mortgage rates is also helping to increase multifamily demand. Monthly payments for homes purchased in the third quarter of 2022 were, on average, 57% more than monthly apartment rents. That difference is the widest gap on record. Even if home values and mortgage rates decrease in 2023, the relatively lower cost of renting will support multifamily demand.

Rapidly rising interest rates on multifamily loans caused multifamily investment activity to slow down in the second half of 2022. Many buyers not willing to pay higher rates for apartment loans stepped out of the market. As apartment loan rates stabilize in 2023, many buyers will return to the market and look to finance apartment building investments with multifamily loans. The multifamily sector has historically been one of the most attractive sectors to investors. Over the past decade, the multifamily sector has seen average annual total returns of 9.3%. Additionally, this sector offers multifamily loan options from both Fannie Mae and Freddie Mac. These apartment loan options are not available for other asset classes. As the market stabilizes in 2023, more and more investors will look to acquire apartment buildings and finance them with agency apartment loans.

One other factor that caused the multifamily sector to stall in 2022 is that buyers expected cap rates to increase commensurate with the rise in interest rates, but sellers still expected higher prices.  This caused many deals to simply not cash flow. Cap rates are expected to increase in 2023. With this increase, many buyers will have the option to finance acquisitions with apartment loans at more attractive prices.

Bronx Apartment Loan Outlook 2022

As we enter 2022, Bronx apartment loan activity is very strong but facing a potential slowdown as the Federal Reserve begins increasing rates to slow the rate of inflation. Bronx apartment loans might be affected, along with the rest of the country, depending on what happens this year with the Federal Reserve. The following is a national summary of the Bronx apartment loan market at the beginning of 2022. We expect Bronx apartment loans to follow national economic trends.

Apartments 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.

Bronx Apartment Loan Outlook 2021

The COVID-19 pandemic affected the ability of young Bronx graduates to find jobs and move into apartments of their own.  The demand for Bronx 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 Bronx 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 Bronx 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 Bronx 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.

Bronx Freddie Mac Apartment loans

Bronx 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

Bronx Fannie Mae Apartment loans

The Bronx Fannie Mae multifamily loan platform is one the leading sources of capital for Bronx 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

Bronx FHA Multifamily Loans

FHA 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 FHA will underwrite the loan in order to provide the insurance. There are two primary types of FHA insured loans that multifamily investors can take advantage of.

Learn More About FHA Multifamily Loans

Bronx HUD Multifamily Loans

HUD 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 HUD Multifamily Loans

Bronx Apartment Loans 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:

• Bronx 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.

Select Commercial provides apartment loans throughout Bronx, New York including, but not limited to, the areas below.

• Baychester • Marble Hill • Soundview • Bedford Park • Melrose • The Hub • Belden Point • Morris Heights • Throggs Neck • Castle Hill • Morris Park • Tremont / East Tremont • City Island • Morrisania • University Heights • Concourse • Mott Haven • Van Nest • Downtown Bronx • Mount Eden • Wakefield • Edenwald • Norwood • West Farms • Fordham • Parkchester† • Williamsbridge • Harding Park • Pelham Bay • Woodlawn • Highbridge • Pelham Gardens • Hunts Point • Pelham Parkway • Kingsbridge • Riverdale