Charlotte Apartment Loans
$1,000,000 Minimum

Charlotte Apartment Loan Rates - Rates updated June 23rd, 2021

Charlotte Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 2.57% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 2.71% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 2.92% Up to 80% Get Free Quote
Charlotte Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 3.17% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 3.18% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 3.19% Up to 80% Get Free Quote
Charlotte Apartment Building Charlotte
Multifamily Loan

Select Commercial has excellent Charlotte multifamily loan products and options available for owners and purchasers of multifamily properties throughout the city of Charlotte. 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. Charlotte 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 Charlotte NC 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.

Charlotte Apartment Loan Benefits

Charlotte Apartment Loan rates start as low as 2.57% (as of June 23rd, 2021)
• No upfront application or processing fees 
• Simplified application process 
• Up to 80% LTV on apartment financing 
• Terms and amortizations up to 30 years 
• Apartment 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!"


Charlotte Apartment Loan Types We Serve

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

  • Large urban high-rise apartment buildings
  • 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

Recent Closings

Charlotte Multifamily Loan Information

Charlotte Economic Trends Charlotte Economic Trends

Expanding Companies Underpin Rental Demand; Tight Class C Vacancy Delivers Steady Cash Flow

Young professionals heighten demand for apartments. Charlotte is the second largest banking center in the nation and is also a rapidly expanding tech hub. The two combined provide well-paying jobs and in turn attract a number of millennials who often rent Class A multifamily units. Over the past several years, the metro ranked among the highest in the nation in terms of the percentage increase for people between 20 to 34 years old, the prime renter cohort. The large pool of skilled workers is drawing new companies, while others expand. Honeywell and Truist Financial are among the latest firms to move their headquarters to the Queen City, while an expansion at Microsoft and Lowe’s new technology center will bolster the need for tech workers. Sustained employment gains are contributing to robust household growth, generating the need for apartments. As a result, multifamily construction is flourishing, with more than 35,000 apartment units delivered in the past five years, yet vacancy has hovered near the replacement level over this period, boosting rent. Charlotte is definitely a place for investors to look for apartment loans for their next purchase.

New inventory, robust demand drivers motivate investors. The surge in apartment rental supply is drawing a wider range of buyers to the metro and many are coming in search of more attractive price points and yields than are available in their home markets. Newer multifamily buildings throughout the metro with more than 200 units will typically trade above $150,000 per unit at cap rates in the high-4 to low-5 percent bracket, up to 100 basis points above large primary markets. Investors interested in steady cash flows are focusing on Class C assets, which post the tightest vacancy and largest apartment rent gains among the classes. Vacancy in this tier is especially tight from Uptown heading north to Interstate 485, which is producing substantial rent gains. Multifamily investors are also active in Fort Mill and Rock Hill, drawn by strong population growth. In these locales Class A properties with more than 250 units will change hands above $135,000 per door, while assets completed before 2000 traded at an average of $60,000 per unit in the first three quarters of 2019. For all these reasons, Charlotte is a great place for investors to take out multifamily loans to acquire multifamily properties.

2020 Charlotte Apartment Market Forecast

Charlotte Completions vs. Absorption Charlotte Completions vs. Absorption

The Charlotte National Multifamily Index Rank is at 21, up 5 places. Fewer deliveries and average yields above that of the nation slide Charlotte into 21st place in the 2020 Index.

Employment in Charlotte is up 2.3%. Employers add 28,000 workers to payrolls in 2020, slightly down from a 2.5 percent hike last year.

Construction of apartment units in Charlotte is expected to exceed 7,000 units. Completions decline from last year’s 9,000 units and fall below the trailing five-year average.

Vacancy in Charlotte is up 50 bps. Inventory additions outpace renter demand, moving the vacancy rate up to 5.2 percent at the end of 2020. Last year the rate contracted 40 basis points.

Apartment rent in Charlotte is up 3.6%. The hike in vacancy will suppress rent gains. The average effective rent advances to $1,206 per month in 2020, down from a 5.9 percent surge last year.

Charlotte remains a strong option for apartment investments. A proposed light rail extension into Pineville and Ballantyne will direct more investors to consider apartment assets along the planned route. Charlotte is a great place for investors to look for apartment loans to finance their next multifamily property.

Data provided by Marcus & Millichap.

Apartment Loan Trends in 2020

Charlotte Vacancy and Rents Charlotte Vacancy and Rents

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.

What Happened with Apartment Loans in 2019

Charlotte Sales Trends Charlotte Sales Trends

The multifamily market ended the 2019 year on a high note. Despite increased levels of new units entering the market, the apartment sector maintained strong and steady growth throughout the year. Vacancy rates throughout the country remained fairly stable, easing investors’ concerns of a significant decline in occupancy due to the high sum of multifamily units delivered. Furthermore, rent growth on the national and metropolitan levels remained healthy throughout the year. While 2019 rent growth was more modest than 2018, it was in line with 2016 and 2017 levels and remained above the national historic average of 3.4%. Based on data provided by the U.S. Census Bureau, multifamily completions increased slightly in 2019 when compared with 2018. The data also show that reported permit growth has increased 3% and starts are up 2%. Although 2019 data is not yet fully complete, these metrics suggest that the supply will remain elevated over the next few years. In terms of multifamily mortgage origination, the most up to date information has surpassed expectations. Mortgage Bankers Association reported that the 2018 mortgage volume came in at about $339 billion, an increase of 18.9% from 2017. While the actual 2019 numbers will not be available until later this year, experts estimate that due to solid fundamentals, low interest rates and heightened demand for multifamily investments, the total origination volume last year was about $369 billion.

The 2019 economy thrived overall. Throughout the year 2.1 million jobs were added which were in line with 2017 number (although it fell short of the 2018 total of 2.7 million). The unemployment rate also continued to decrease in 2019 as it went down 50 basis points to 3.5% at the end of the year. This number matched the lowest unemployment rate in fifty years. The labor market heavily supported increased salaries, as indicated by the 2.8% annual growth in the Employment Cost Index as of September of 2019. While these gains were below the expected amount for a market with such a low unemployment rate they were above the average for the past decade. At the beginning of the year many investors were concerned due to expectations of a recession. There were many indicators that supported this concern such as inverted two and ten year yield curves, an unanticipated rise in the June unemployment rate of ten basis points, an unstable stock market and slowed job growth. However, during the third and fourth quarters of 2019, the economy improved as job growth rose, the unemployment rate fell. This economic improvement has had a clear impact on the multifamily market as more investors are feeling bullish on putting their money into this asset class.

Charlotte Apartment Loan Options

Our company has multiple capital sources for these apartment loans, including: Fannie Mae, Freddie Mac, FHA, national banks, regional and local banks, insurance companies, Wall Street conduit lenders, credit unions and private lenders.


Fannie Mae Loan and Rate Information


Fannie Mae’s multifamily loan platform is one the leading sources of capital for 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).

Freddie Mac Loan and Rate Information

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.

Apartment Lending with Banks and Other Programs

While the agencies (Fannie Mae and Freddie Mac) 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:

  • 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.

Charlotte Apartment Building Loans

Select Commercial provides apartment loans and multifamily loans throughout Charlotte, North Carolina including, but not limited to, the areas below.


Myers Park • Ballantyne West • Autumnwood • Highland Creek • Quail Hollow • Cotswold • Fourth Ward • Davis Lake / Eastfield • Tryon Hills • City Center • Mountain Island • University City North • Carmel • Toddville Road • East Forest • Dilworth • First Ward • Newell • Closeburn / Glenkirk • Oakhurst