Denver Apartment Loans
$1,000,000 Minimum

Denver Apartment Loan Rates - Rates updated October 19th, 2021

Denver Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 2.59% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 2.70% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 2.91% Up to 80% Get Free Quote
Denver Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 3.23% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 3.24% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 3.26% Up to 80% Get Free Quote
Denver Apartment Building Denver
Multifamily Loan

Select Commercial has excellent Denver Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of Denver. 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. Denver 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 Denver CO 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.

Denver Apartment Loan Benefits

Denver Apartment Loan rates start as low as 2.59% (as of October 19th, 2021)
• 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!"


Denver Apartment Loan Types We Serve

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

Recent Closings

Denver 2021 Apartment Market and Trends

In many ways the Denver economy survived the COVID-19 pandemic due to the city’s tech industry. Tech professionals were able to transition to remote work pretty seamlessly. The Denver tech sector helped the city keep a higher percentage of jobs than many comparable U.S. markets during the pandemic. In addition, the city’s warehousing and transportation sectors benefited from the growth of e-commerce. The solid performance of all these industries helped to spur demand for apartment rentals in the metro throughout 2020. As a result, each quarter of 2020 saw positive absorption take place in the Denver. Experts anticipate more improvements ot take place in 2021. As more jobs are created in these industries and more vaccinations are administered, restrictions will continue to be lifted and the Denver economy should boom in 2021. In addition, improvements in the leisure and hospitality sectors should help to increase demand for lower-cost rentals in 2021. Many larger organizations have been drawn to the Denver market recently. Factors such as the city’s lower cost of doing business and large number of well-educated residents have attracted companies such as Palantir Technologies, Healthpeak Properties and VF Corp to the Denver market. As more companies establish headquarters in this market in 2021, demand for apartment housing should increase. Many of these firms hire employees from outside the market. As these people move to Denver, demand for Class A units should increase.

In 2021, experts anticipate that the city will add about 31,900 jobs or a 2.1% growth in employment rate. This will amount to recapturing half of the jobs lost in the pandemic. Many of these jobs in 2021 are in the technology, logistics and service industries which are back on the uptick after the pandemic. About 6,820 new units are expected to be constructed in 2021. This will increase inventory about 2.2 percent this year. About 60% of these new units in 2021 are expected to be built in the Denver suburban submarkets. Demand in 2021 is expected to keep pace with the deliveries of new apartment units. There should be a net absorption of about 6,800 units. Renter demand keeps pace with deliveries, translating to net absorption of roughly 6,800 units. Vacancy is expected to drop 10 basis points to 5%. That’s the lowest vacancy rate since 2015. In 2021, the metro’s average effective rent is expected to go up to $1,539 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.

    What Happened with Apartment Loans in 2020

    Denver Economic Trends Denver Economic Trends

    Continued Wave of Tech Jobs Keep Builders Active; Colfax Avenue Fosters Bevy of Investment

    Firms eager to capitalize on Denver’s tech talent. Bay Area tech companies remain a key driver behind Denver’s apartment market as they relocate to the Mile-High City, creating jobs in the area and capitalizing on local talent. This has brought an influx of high wage jobs to the area from companies such as Amazon and Slack, prompting developers to deliver luxury apartments to the urban core. Downtown Denver and its surrounding neighborhoods will receive more than half of the metro’s new multifamily supply in 2020, highlighted by several 300-plus apartment unit complexes. Despite the wave of upscale apartments, Class A vacancy has dipped to the mid-4 percent range, its lowest level in four years. The Class B and C multifamily segments boast even tighter readings in the low-4 and high-3 percent bands, respectively. Sustained job creation in service-oriented fields and ultra-tight unemployment will remain a boon to workforce housing this year, keeping upward pressure on rent growth for these properties. In the past five years, the Class C average effective rent increased 41 percent, while the Class B measure rose 30 percent. Investors looking at the Denver market would be wise to look for an apartment loan to finance their next purchase.

    Buyers stay focused on key thoroughfare. Colfax Avenue remains the common denominator of many apartment deals as the corridor provides investors wide-ranging dynamics to fit various investment criteria. The eastern section in North Aurora provides favorable price points to many multifamily investors with per unit values averaging about $120,000 and cap rates reaching the mid-7 percent realm. Proximity to UC Health keeps apartment rental demand strong in this area as vacancy hovers under 4 percent. Moving west, the Capitol Hill neighborhood is highly targeted due to its adjacency to downtown and relatively affordable price points. Apartment buyers also zero in on North Lakewood, where the recently completed light rail extension has boosted the area’s transit connectivity to downtown, propelling apartment demand throughout the West Colfax corridor. Here, multifamily cap rates generally sit in the mid-5 to upper-5 percent range, in line with the metro average. Denver is a good market for investors to procure a multifamily loan to purchase their next property.

    2020 Denver Apartment Market Forecast

    Denver Completions vs. Absorption Denver Completions vs. Absorption

    The Denver National Multifamily Index Rank is at 20, up 1 place. Reduced deliveries help to tighten vacancy this year, improving Denver’s standing in the Index.

    Employment in Denver is up 1.3%. The metro’s 2.6 percent unemployment rate will restrain hiring activity this year as Denver registers its lowest job creation since 2010 with the addition of 19,800 workers to payrolls.

    Construction in Denver is expected to exceed 8,800 apartment units. Completions will match the previous five-year average as builders remain focused on the urban core.

    Vacancy in Denver is down 10 bps. Building on 60- and 70-basis-point drops during the previous two years, vacancy will contract to 4.4 percent in 2020.

    Rent in Denver is up 4.5%. Denver’s average effective rent will climb to $1,625 this year as rent growth exceeds 4 percent for the third year in a row. In 2019, rents expanded by 6.0 percent.

    Investment in Denver remains strong for those looking for apartment loans. Yields up to 150 basis points above other tech-heavy metros will continue to entice buyers nationwide, strengthening bidding environments and keeping price appreciation elevated. We advise investors looking in the Denver market to finance their next property with a multifamily loan.

    Data provided by Marcus & Millichap.

    Denver Vacancy and Rents Denver 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.

    Denver Apartment Loan Options

    Denver Freddie Mac Apartment loans

    Denver 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


    Freddie Mac is a government sponsored agency that offers incredible financing solutions to investors looking for apartment loans. They provide both fixed rate and floating rate multifamily loans to acquire or refinance a wide variety of multifamily properties.  These apartment building loans are used to finance properties such as market-rate apartments, student housing, senior housing, and affordable housing.  While Freddie Mac has always been one of the industry's most aggressive financing source for larger apartment loans, Fannie Mae used to really dominate the smaller balance market. However, over the last 7 years, Freddie Mac has rolled out their Freddie Mac Small Balance Multifamily Loan program to compete with Fannie Mae in the small balance market. For eligible borrowers, Denver Freddie Mac Multifamily loans offer some of the best terms and rates in the market. However, qualifying for Freddie Mac loans requires that the borrower and property both meet a high standard set by Freddie Mac. Borrowers must typically meet a threshold for net worth and liquidity and properties must be cash flowing with at least 90% occupancy for 90 days.


    Freddie Mac

    Freddie Mac’s Denver Multifamily Loan Programs offer many unique and beneficial features for apartment purchases and refinances, with a minimum loan size of $1,000,000. The loan application process is simple and streamlined. As an example, tax returns for the borrower and the property are not required. Loans typically close in 45 days and the program has much lower costs than other government or agency programs. These apartment building loans are non-recourse, which means that the borrower is not required to guarantee payments personally. Prepayment penalties are flexible, ranging from yield maintenance to soft stepdown. Perhaps the best feature of these multifamily loans is that Freddie Mac offers a free rate hold for 45 days from application. If rates change during the processing period, the loan rate is automatically held from the date of application.


    Freddie Mac

    Freddie Mac has a publicly stated mission to help maintain stability in the American housing-mortgage markets. Additionally, their goal is to both keep the housing market well-financed and to promote affordable housing. Freddie Mac accomplishes this goal by helping investors to purchase, refinance, preserve, and renovate existing multifamily and apartment buildings. A large portion of the properties financed by Freddie Mac are more than 10 years old, need significant improvements and have a hard time procuring financing with other lenders. Freddie Mac’s main focus in the multifamily arena is affordable housing. Around 90 percent of their apartment loans are written for properties with affordable rents (based on local area median income). Over the years the number of renters has continued to grow leading to a short supply of available affordable apartment units. Many of Freddie Mac’s programs were designed with this challenge in mind. They focus on financing apartment buildings that are affordable to renters with lower annual incomes. They also write apartment building loans for subsidized housing that assists individuals with very low (below average) incomes. Through these programs, Freddie Mac’s multifamily loan programs are playing a crucial role in ensuring that Americans have access to affordable housing throughout the country.


    Freddie Mac

    One potential complication with Denver Freddie Mac multifamily loans is that Freddie Mac does not directly originate their loans. Rather they rely on authorized lenders from within their Optigo network to underwrite and service their loans. While these apartment loans may be financed by outside lenders, they all must conform to Freddie Mac guidelines. While Freddie Mac offers loans in varying markets for many different situations, each Optigo lender may have their own limitations on eligible deals they are willing to finance. At Select Commercial Funding, we have access to a wide array of Freddie Mac funding solutions so we can help to connect you with the right Freddie Mac lenders for your specific needs.


    Denver Fannie Mae Apartment loans

    The Denver Fannie Mae 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).

    Fannie Mae Loan and Rate Information


    Fannie Mae is one of the nation’s leading secondary market sources of capital for apartment building financing. Fannie Mae provides mortgage capital for conventional, affordable housing, cooperatives, senior housing, student housing, manufactured housing communities and mobile home parks nationwide. Fannie Mae's apartment loan program offers many distinct advantages over traditional bank programs, including long-term fixed rates up to 30 years, high LTV ratios up to 80%, and nonrecourse financing (no personal guarantee to the principals). Fannie Mae Multifamily provides long term permanent mortgage loans for the purchase or refinance (cash-out OK) of apartment properties nationwide.


    Fannie Mae

    Fannie Mae Multifamily loans can be used to finance apartment buildings with at least 5 residential units. No more than 20 percent of net rentable area can be leased out to commercial tenants. Fannie Mae Multifamily is an industry leader in apartment building loans and there terms are incredibly difficult to beat. This program offers loan terms between 5 and 30 years with amortization schedules up to 30 years. They offer flexible prepayment penalties and interest-only options. In addition, loans are typically assumable and allow for secondary financing.


    Fannie Mae

    While Denver Fannie Mae Multifamily loans are a terrific option for investors in the multifamily space, this program does have some very specific underwriting guidelines. Typically, these loans are only eligible for apartment buildings in primary or secondary MSAs (with some exceptions for tertiary markets). These properties must be stabilized with 90% occupancy for at least 90 days. Standard multifamily properties must have at least 5 units and manufactured housing communities must have at least 50 pad sites. Borrowers must have strong financials with net worth equal to the loan amount and liquidity of 9 to 12 months of debt service. Typically, borrowers must have a credit score of at least 680 with no recent delinquencies.


    Fannie Mae

    If you are looking for a multifamily loan, Fannie Mae Multifamily may be the perfect option for you. The professionals at Select Commercial Funding are excited to help you find the perfect Fannie Mae product for your multifamily loan. Give us a call today to take the next step in financing your apartment building with a Fannie Mae Multifamily loan.



    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.

    Denver Apartment Building Loans

    Select Commercial provides apartment loans and multifamily loans throughout Denver, Colorado including, but not limited to, the areas below.


    Alamo Placita • Five Points • Park Hill • Athmar Park • Fort Logan • Platt Park • Auraria • Gateway • Regis • Baker • Globeville • Rosedale • Barnum • Golden Triangle • Ruby Hill • Barnum West • Goldsmith • Skyland • Bear Valley • Green Valley Ranch • Sloans Lake • Belcaro • Hale • Southmoor Park • Berkeley • Hampden • South Park Hill • Burns Brentwood • Hampden Heights • South Platte • Byers • Hampden South • Speer • Capitol Hill • Harvey Park • Stapleton • Central Business District • Harvey Park South • Sunnyside • Chaffee Park • Highland • Sun Valley • Cheesman Park • Hilltop • Union Station • Cherry Creek • Indian Creek • University • City Park • Jefferson Park • University Hills • City Park West • Kennedy • University Park • Civic Center • Lincoln Park • Valverde • Clayton • LoDo • VillaPark • Cole • Lowry • Virginia Village • College View • MarLee • Washington Park • Congress Park • Marston • Washington Park West • Cory-Merrill • Mayfair • Washington-Virginia Vale • Country Club • Montbello • Wellshire • Crestmoor • Montclair • WestColfax • Curtis Park • North Capitol Hill • West Highlands • Denver International Airport • Northeast Park Hill • Westwood • East Colfax • North Park Hill • Whittier • East Highlands • Overland • Windsor • Elyria-Swansea • Parkfield