Maryland Apartment Loans

$1,000,000 Minimum

Maryland Apartment Loan Rates - Rates updated September 26th, 2021

Maryland Apartment Loan Programs Over $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 2.58% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 2.69% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 2.90% Up to 80% Get Free Quote
Maryland Apartment Loan Programs Under $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 3.22% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 3.23% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 3.25% Up to 80% Get Free Quote
Maryland Apartment Building Maryland
Apartment Building

Select Commercial has excellent apartment building loan and multifamily loan products and options available for owners and purchasers of multi-family and apartment properties throughout the state of Maryland. 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. Maryland is one of the states that we consider to be a premium market for apartment building loans 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 MD 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.

Maryland Apartment Loan Benefits

Maryland Apartment Loan rates start as low as 2.58% (as of September 26th, 2021)
• No upfront application or processing fees 
• Simplified application process 
• Up to 80% LTV on apartment financing 
• Terms and amortizations up to 30 years 
• Loans for purchase and refinance, including cash-out 
• 24 hour written pre-approvals with no cost and no obligation

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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!"


Maryland Apartment Loan Types We Serve

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

Baltimore 2021 Apartment Market and Trends

The Baltimore apartment market has retained low vacancy in 2021 as leasing activity has resumed post COVID-19. In Q3 of 2020, development continued with the opening of about 1,000 multifamily rentals. That being said, last year’s annual total of new completions lagged behind the record 4,000 new units delivered in 2017. Baltimore’s absorption rate also recovered very well in the second half of 2020, as the city’s vacancy rate dropped 60 basis points to 4.3 percent. In addition, the market’s average effective rent rose 1.4 percent in the second half of 2020, led by a 1.8 percent increase among Class C rentals. Baltimore’s multifamily occupancy rate increased 60 basis points to 95.3%. This came in at over 80 basis points above the overall national occupancy rate.

The Baltimore multifamily market came out of the the COVID-19 pandemic with record demand for apartment housing. Baltimore absorbed over 5,230 multifamily units in the year ending Q1 2021. In the last two decades, the city only saw similar demand in the 3rd quarter of 2018. This demand in Baltimore has caused significant progress in other ways. Solid absorption pushed the occupancy rate to over 96% in April. This came in at 40 basis points above the national norm. In addition, rent growth grew 5.6% annually as of April, well ahead of the national rate of 1.7%.

2021 metrics look really good for the Baltimore multifamily market. Experts anticipate 37,200 jobs to be created, up 2.7%. 1,500 new units are expected to be completed and delivered to the Baltimore market in 2021. The city’s multifamily vacancy rate is down 30 basis points, to 3.8%. Additionally, the average effective rent is up 3.3% to $1,429 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.

    Maryland Multifamily Loan Information and Economic Overview

    Baltimore Economic Trends Baltimore Economic Trends

    With a gross state product ranked in the top 15 in the country, Maryland is a great place for investors to procure commercial mortgage and multifamily financing. The average value of commercial real estate properties in Maryland is roughly $672,000 with a median sales price of almost $400,000. Over the last two years there have been about 45,600 commercial sales in the state; about 30,700 of them sold for more than $250,000, almost 7,100 were valued at over $1,000,000 and just over 1,100 were appraised at over $10,000,000. The average price per square foot of these commercial real estate properties in the state is $154 while the average lot size of these properties 21,947 square feet, 10% below the United States average. There are about 482,000 commercial real estate properties in Maryland, 196% below the country’s average, with a total acreage of almost 3.6 million acres. In terms of commercial mortgages, there are roughly 450,000 mortgages for commercial real estate properties throughout the state of Maryland. The average value of these commercial mortgages is about $5.6 million, 8% above the United States average. Thus, Maryland is a wonderful place for investors to receive commercial mortgage financing in order to break into the market.

    Multifamily investors in the Maryland commercial real estate market should definitely look into apartment loans for buildings in Baltimore. Due to big employment gains in lucrative industries, Baltimore’s multifamily market is showing strengthened fundamentals throughout the second half of 2019. The average apartment rent in Baltimore was up 2.8 percent year-over-year through July, marking a big improvement from last year, when rates in the Lifestyle sector were diminishing. Furthermore, while 2018 was loaded with new development, absorption remained healthy and the occupancy rate in stabilized properties increased 40 basis points reaching 95 percent. The Baltimore economy gained 11,700, a 0.8 percent increase (about half the country’s rate of growth), with business, professional, health and education services compensating for losses across several other industries. Although Baltimore’s employment market is spotty, several multibillion-dollar projects are progressing. Some of these include Howard Hughes’ Merriweather District in Columbia, Sagamore’s $5.5 billion Port Covington and the nearly 3,100-acre Tradepoint Atlantic redevelopment in Sparrows Point. Both development and transactions decreased a bit in the first half of this year, with 704 multifamily apartment units delivered and less than $400 million in assets trading through July. With overall supply and demand fairly close to a stable balance, experts anticipate apartment rent growth to remain moderate throughout 2019. The Baltimore multifamily market provides a potentially lucrative landscape and those that want to take advantage should definitely take out an commercial mortgage and apartment loans to break into this space.

    2020 Baltimore Apartment Market Forecast

    Baltimore Completions vs. Absorption Baltimore Completions vs. Absorption

    Baltimore’s National Multifamily Index Rank is at 41, up 3 places. Vacancy declining below the U.S. rate and a higher average cap rate raise Baltimore’s standing in the 2020 NMI.

    Employment in Baltimore is up 0.6%. Approximately 8,900 jobs will be created in 2020 as total employment growth slows from the 1.1 percent recorded last year.

    Construction of apartments in Baltimore is expected to exceed 2,200 units. Baltimore’s apartment inventory will expand by a modest 1.0 percent in 2020 as annual completions fall below the cycle average of 2,600 units.

    The vacancy rate in Baltimore is down 10 bps. The net absorption of apartments will just surpass supply additions to lower the vacancy rate to 4.3 percent this year. In 2019, availability fell 80 basis points.

    Apartment rent in Baltimore is up 3%. Fewer deliveries compared with earlier in the decade and sub-5 percent vacancy will both help to raise the average effective rent to $1,391 per month in 2020 following a 3.3 percent increase last year.

    Baltimore remains a very strong city for apartment investments. Out-of-market investment into Baltimore is trending higher as buyers are obtaining assets in urban areas at higher yields and lower entry costs than in their home metros. This is a really good place for investors to look into obtaining apartment loans to acquire their next multifamily property.

    Data provided by Marcus & Millichap.

    Baltimore Vacancy and Rents Baltimore 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.

    Maryland 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 market. Freddie Mac has a very aggressive program for small balance 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.

    Maryland 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:

    • 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 loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.

    Maryland Multifamily Loan Information and Economic Overview

    With a gross state product ranked in the top 15 in the country, Maryland is a great place for investors to procure commercial mortgage and multifamily financing. The average value of commercial real estate properties in Maryland is roughly $672,000 with a median sales price of almost $400,000. Over the last two years there have been about 45,600 commercial sales in the state; about 30,700 of them sold for more than $250,000, almost 7,100 were valued at over $1,000,000 and just over 1,100 were appraised at over $10,000,000. The average price per square foot of these commercial real estate properties in the state is $154 while the average lot size of these properties 21,947 square feet, 10% below the United States average. There are about 482,000 commercial real estate properties in Maryland, 196% below the country’s average, with a total acreage of almost 3.6 million acres. In terms of commercial mortgages, there are roughly 450,000 mortgages for commercial real estate properties throughout the state of Maryland. The average value of these commercial mortgages is about $5.6 million, 8% above the United States average. Thus, Maryland is a wonderful place for investors to receive commercial mortgage financing in order to break into the market.

    Multifamily investors in the Maryland commercial real estate market should definitely look into apartment loans for buildings in Baltimore. Due to big employment gains in lucrative industries, Baltimore’s multifamily market is showing strengthened fundamentals throughout the second half of 2019. The average apartment rent in Baltimore was up 2.8 percent year-over-year through July, marking a big improvement from last year, when rates in the Lifestyle sector were diminishing. Furthermore, while 2018 was loaded with new development, absorption remained healthy and the occupancy rate in stabilized properties increased 40 basis points reaching 95 percent. The Baltimore economy gained 11,700, a 0.8 percent increase (about half the country’s rate of growth), with business, professional, health and education services compensating for losses across several other industries. Although Baltimore’s employment market is spotty, several multibillion-dollar projects are progressing. Some of these include Howard Hughes’ Merriweather District in Columbia, Sagamore’s $5.5 billion Port Covington and the nearly 3,100-acre Tradepoint Atlantic redevelopment in Sparrows Point. Both development and transactions decreased a bit in the first half of this year, with 704 multifamily apartment units delivered and less than $400 million in assets trading through July. With overall supply and demand fairly close to a stable balance, experts anticipate apartment rent growth to remain moderate throughout 2019. The Baltimore multifamily market provides a potentially lucrative landscape and those that want to take advantage should definitely take out an commercial mortgage and apartment loans to break into this space.

    Maryland Apartment Loans

    Select Commercial provides apartment loans and commercial mortgages throughout the state of Maryland including but not limited to the areas below.


    Baltimore • Ellicott City • Columbia • Frederick • Germantown • Silver Spring • Waldorf • Glen Burnie • Hagerstown • Annapolis