Fort Worth Apartment Loans
$1,000,000 Minimum

Fort Worth Apartment Loan Rates - Rates updated May 7th, 2021

Fort Worth Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 2.64% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 2.78% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 3.00% Up to 80% Get Free Quote
Fort Worth Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 3.25% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 3.26% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 3.27% Up to 80% Get Free Quote
Fort Worth Apartment Building Fort Worth
Multifamily Loan

Select Commercial has excellent Fort Worth multifamily 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.

Fort Worth Apartment Loan Benefits

Fort Worth Apartment loan rates start as low as 3.00% (as of May 7th, 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!"

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 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

Fort Worth Multifamily Loan Information

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.

2019 Dallas/Fort Worth Apartment Market Forecast

National Multifamily Index of 31, down 1 place.  Dallas/Fort Worth retreats one place in the National Multifamily Index this year as a surge in completions pushes vacancy up.

Employment in Dallas/Fort Worth is up 2.8%.  Employers have created an average of 103,000 positions during each of the past seven years, and job gains remain on par in 2019 as 105,000 workers are added to payrolls.

Construction of apartments in Dallas/Fort Worth is up 28,400 units.  In 2019, deliveries rise from the 25,900 units completed last year, reaching the highest level in more than 20 years.

Vacancy in Dallas/Fort Worth multifamily is up 40 basis points.  The absorption of nearly 24,000 apartments falls short of supply additions this year and vacancy increases to 6.0 percent.

Dallas/Fort Worth apartment rents are up 2.8%.  Building on last year’s 3.2 percent swell, the average effective rent advances to $1,142 per month.

Investment in Dallas/Fort Worth apartments is strong.  Housing demand in the areas west of Fort Worth as well as southern and far east Dallas is rising as residents eye lower housing costs. Additional investment activity could follow as buyers seek to capture upside through rent advances.

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.

Apartment Loan Trends in 2020

Fort Worth Vacancy and Rents Fort Worth 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

Fort Worth Sales Trends Fort Worth 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.

Fort Worth 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 Apartment Loan (Small)

Fannie Mae Apartment Loan (Large)

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 Apartment Loan

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.

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