Fort Worth Apartment Loans
Loans from $1 Million to $25 Million+

Fort Worth Apartment Loan Rates - Rates updated May 16th, 2022

Fort Worth Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 4.33% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 4.39% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 4.49% Up to 80% Get Free Quote
Fort Worth Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 4.46% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 4.52% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 4.62% Up to 80% Get Free Quote
Fort Worth Apartment Building Fort Worth
Apartment Loan

Select Commercial has excellent Fort Worth Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of Fort Worth. 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. Fort Worth 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 Fort Worth TX 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. For more information on multifamily loans, check out how to get the best rate on a multifamily loan and how to get the best rates on an apartment refinance.

Fort Worth Apartment Loan Benefits

Fort Worth Apartment Loan rates start as low as 4.33% (as of May 16th, 2022)
• A commercial mortgage broker with over 30 years of lending experience
• 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!"


Fort Worth Apartment Loan Types We Serve

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

 

Fort Worth 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

Recent Closings

Fort Worth Vacancy and Rents Fort Worth Rent and Sales Trends

2022 Fort Worth Apartment Loan Outlook

Fort Worth Market Ranks Tops for New Development – Rents Increasing and Vacancy Rates Decreasing

Rate of new construction and strong migration into the market propels market forward. Dallas-Fort Worth led all major U.S. cities in the addition of new apartment units in each of the past four years. Over that period, the combined market added more than 100,000 apartment rental units, even exceeding New York City which ranked second during that period. In 2022, Dallas-Fort Worth is expected once again to lead the market, although the record rate of building has softened slightly. Anticipated inventory growth of 2.5 percent in 2022 will be the lowest growth rate in eight years. The slowdown in construction is occurring when the market is adding new residents at a strong pace, which is good news for owners of existing apartment properties. New residents to Dallas-Fort Worth are expected to exceed 70,000 in 2022, a total that will lead the whole country. Due to all of these new individuals and the households they form, apartment absorption will exceed new availability in 2022, causing lower vacancy rates and driving rent growth.

Suburban household creation and area market apartment sales price growth push the market higher. Due to strong population increases and continued household formation, apartment properties in Dallas-Fort Worth are being sought out by investors nationally and internationally. The large number of active buyers looking to purchase properties in the market is driving up sale prices and pushing down cap rates. From 2013-2020 the average sale price rose more than 10% per year, a rate of growth sustained in 2021. The average apartment cap rate also dropped below 5 percent for the first time ever in 2021. Many apartment purchasers are following demographic trends to suburbs of North Dallas, with sales activity increasing in locations beyond I-635 like Carrollton, Frisco and Garland. Cap rates in the mid-3% range for higher-quality apartment properties are becoming standard, while Class C sales are helped by a low inventory of older properties. Investors looking for higher initial returns often look to the Fort Worth suburbs, particularly areas near Interstate 30 on the west side.

2022 Apartment Market Forecast and Fort Worth Apartment Loan Economics

Dallas-Fort Worth has a National Multifamily Rank of 12. Strong levels of migration into the market and positive household growth help Dallas-Fort Worth with a ranking in the top 15 of the 2022 survey.

Employment is up 2.7%. Job growth will return to the annual average of the period from 2015-2019, as 106,000 new jobs are created in 2022.

New construction expected to add 22,200 apartment units. Compared with 2021, about 6,300 fewer apartment units are expected to come online in 2022. Areas that will receive the largest number of new units include Frisco, South Arlington-Mansfield and Intown Dallas.

Vacancy rate expected to drop 20 basis points. After a massive 190-basis-point drop in 2021, vacancy rates continue downward in 2022 as total absorption exceeds new supply of apartment units. The rate will fall to a 20 year low of 3.6%.

Rental rates up 5.3%. Rental rates went up an average of 12% in 2021 and rent growth in 2022 will its very strong uphill climb. The mean effective apartment rent hits $1,395 per month.

Investment in apartment buildings. Competition for properties in North Dallas suburbs, Downtown and in the Mid-Cities causes investors to broaden their search. Denton, McKinney and Waxahachie may offer investors additional choices.

Fort Worth apartment loan rates will start to increase in 2022 as the Federal Reserve starts raising rates to slow the rate of inflation. We will be watching to see if Fort Worth apartment loan rate increases will affect market activity in 2022.

All data provided by Marcus and Millichap

2021 Fort Worth Apartment Market and Trends

There are a variety of reasons why experts think migration to the Dallas/Fort Worth metro could increase in 2021. The Texas market had less severe COVID-19 shutdowns than other parts of the country. Additionally, the cost of living is cheaper and quality of life is greater than many other top markets in 2021.  Since 2010 the city has grown over 20% in terms of population. This has been driven by the migration of about 800,000 people into the market. In addition to population growth, the widening affordability gap of home prices is driving demand for apartment rental units. The median home price in the city increased 11.4 percent last year to $306,300. In particular, renters have been very interested in multifamily units in the northern suburbs.

In 2021, over 24,000 new multifamily units are expected to be added to the Dallas/Fort Worth metro for the fifth straight year. Additionally, the suburban markets are quickly adding apartments in 2021. More than 28,000 units are set to be completed in the suburbs in 2021. Experts anticipate that, in 2021, the city will regain all of the 81,800 jobs that were lost due to the COVID-19 pandemic. Moreover, the city is expected to recoup growth momentum in 2021. Coming into 2021, the unemployment rate in Dallas set at 6.5 percent. This was an increase of 330 basis points year-over-year. This should benefit firms looking for unemployed workers. There’s more exciting news for the Dallas multifamily market. Data indicates that in 2021, the Dallas market should receive the largest delivery volume of a new units in the past twenty years. These units should increase available multifamily inventory by about 3.8 percent, surpassing last year’s 3.1 percent growth. After a fairly solid year of absorption in 2020, the vacancy rate is expected to be pressured in 2021. The vacancy rate is expected to rise about 6.2 percent in 2021 after increasing 60 basis points last year. While vacancy is expected to rise in 2021, strong demand for rentals and new apartments charging premium rates will support positive rent growth for the 12th consecutive year. The average effective rent will reach $1,192 per month in 2021.

- 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. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.

    What Happened with Apartment Loans in 2020

    Fort Worth Economic Trends Fort Worth Economic Trends

    Dallas/Fort Worth’s Robust Construction Pipeline Met with Steady Housing Demand

    Strong job growth propels Dallas Metroplex apartment demand, construction pipeline. The Dallas/Fort Worth area remains a national leader in job creation again this year, spurring strong housing demand. The number of households in the Metroplex is set to rise by approximately 60,000 for a second consecutive year, and apartment developers are on track to meet a sizable share of this demand. While rental deliveries remain heaviest just north of downtown Dallas and in the suburbs of Frisco, Prosper, Allen and McKinney, areas around Fort Worth will see a significant increase in additions during 2019. Downtown Fort Worth is set to receive nearly 3,200 units this year, compared with 4,000 apartments delivered since 2013. While some softening is anticipated as vacancy ticks up, positive net absorption remains near a historical high, encouraging a steady pace of effective rent growth.

    Cap rate spread narrows between Class B and Class C properties, reflecting shift of investor goals. Robust supply additions in some pockets of the Dallas Metroplex have had little impact on Class B and Class C apartment operations as new supply is almost all Class A luxury rentals. Vacancies for Class B and Class C properties average well under 5 percent and rent growth has been strongest among these asset classes. Class C properties are in high demand, especially among investors seeking value-add properties. As a result, average first-year returns have compressed and are on par with those for Class B complexes near 5 percent. Rising interest rates and an overall slower pace of rent growth have raised caution levels among some investors and encouraged a more conservative approach to opportunities. Buyers are adjusting underwriting and investment criteria as they consider the intricacies of today’s market environment. Some investors with long-term hold strategies are using the opportunity to trade into a higher-quality asset offering a similar initial return to an older property in need of capital improvements.

    Data provided by Marcus & Millichap

    2020 Fort Worth Apartment Market Forecast

    Fort Worth Completions vs. Absorption Fort Worth Completions vs. Absorption

    Fort Worth National Multifamily Index Rank is at 27, up 4 places. Employment growth more than twice the national average generates rental demand lifting Fort Worth in the NMI.

    Employment in Fort Worth is up 2.2%. Following an average of roughly 100,000 jobs created each of the previous five years, 85,000 positions will be added in 2020 as tight unemployment restrains some hiring activity.

    Construction of apartment units in Fort Worth is expected to exceed 21,400 units. Developers will surpass the 20,000-unit mark for the fifth consecutive year as they try to keep pace with the sustained wave of new households.

    Vacancy in Fort Worth is down 10 bps. Strong leasing activity will push market vacancy down to 4.9 percent, building on the 50-basis-point drop in 2019.

    Rent in Fort Worth is up 3.6%. After a 5.9 percent boost last year, rent growth will moderate in 2020 as the average effective rent rises to $1,232 per month.

    Investment in Fort Worth remains a strong option for those looking for apartment loans. Tight conditions across the Mid-Cities will keep investors interested in communities such as Irving and Lewisville, where cap rates average 6 percent for stabilized Class C properties. We recommend that investors in the Fort Worth area should consider procuring multifamily loans to finance their next purchase.

    Data provided by Marcus & Millichap.

    Fort Worth Vacancy and Rents Fort Worth 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.

    Fort Worth Apartment Loan Options

    Fort Worth Freddie Mac Apartment loans

    Fort Worth 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


    Fort Worth Fannie Mae Apartment loans

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


    Fort Worth FHA HUD Multifamily Loans

    HUD (Department of Housing and Urban Development) and FHA (Federal Housing Administration) insured 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 FHA HUD Multifamily Loans

    Fort Worth Apartment Lending 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:

    • Fort Worth 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.

    Fort Worth Apartment Building Loans

    Select Commercial provides apartment loans and multifamily loans throughout Fort Worth, Texas including, but not limited to, the areas below.


    Greenland Hills • Casa Linda • Cochran Heights • El Tivoli Place • Government District • Forest Hills • Glencoe • Hollywood Santa Monica • Forest Meadow East • Highland Hills • Lone Star Industrial Park • Junius Heights • Moss Meadows • Muncie • Victory Park • Old Lake Highlands • Trinity • Royal Highlands