Massachusetts Apartment Loans

$1,000,000 Minimum

Massachusetts Apartment Loan Rates - Rates updated October 20th, 2021

Massachusetts Apartment Loan Programs 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
Massachusetts Apartment Loan Programs 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
Massachusetts Apartment Building Massachusetts
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 Massachusetts. 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. Massachusetts 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 MA 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.

Massachusetts Apartment Loan Benefits

Massachusetts Apartment Loan rates start as low as 2.59% (as of October 20th, 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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Massachusetts Apartment Loan Types We Serve

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

Boston 2021 Apartment Market and Trends

Experts anticipate the Boston market to face ample hurdles in 2021. The combination of a large amount of multifamily openings last year was unfortunately timed with the onset of COVID-19. The pandemic considerably lowered the demand for dense urban living and as a result many units were left vacant. It should take a significant amount of time for the Boston multifamily market to reover from a multiyear setback in vacancy. There are about 1,200 new apartment units are slated to open in the Intown area in 2021. This should pose some challenges to the market’s leasing process. While there are a lot of reasons to be cautious about the Boston market, the city is still home to not only some of the world’s best educational institutions but also many prominent employers. As the COVID-19 vaccine continues to be administered, the reopening of these facilities should revitalize the multifamily market and bring more renters back downtown.

Boston’s coastal suburban submarkets are on pace for solid growth in 2021. These markets were much less damaged by COVID-19 than the city’s urban center. Many people who were working from home relocated to larger houses in the less dense suburban areas. Multiple submarkets, including Lowell and Essex County, reported flat or falling vacancy along with climbing rents last year, positioning these areas for strong performance in 2021. Experts anticipate 115,000 jobs to be created in 2021. This does assume that a large portion of Boston residents receive the COVID-19 vaccine. If this occurs, employment should rise to within 6 percent of the pre-COVID levels. As 2020 saw a record amount of deliveries to the Boston market, development of new multifamily units should fall off a bit this year. Experts anticipate about 7,000 new units to hit the Boston market in 2021. This tapering off of construction combined with the administration of more COVID-19 vaccines should help bring down the multifamily vacancy rate in 2021. The vacancy rate should dip 20 basis points in 2021, to 4.7%. Lastly, rents are expected to decrease by 2.1% 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.

    Massachusetts Multifamily Loan Information and Economic Overview

    Boston Economic Trends Boston Economic Trends

    The state of Massachusetts provides much potential to investors looking for commercial mortgage financing. This market is heavily driven by the major hospitals, universities and employers in the region. From Boston to Lowell and Waltham to Springfield, there are many significant investment opportunities available to investors. The average value of commercial real estate properties in Massachusetts is just over $780,000 and the median sale price of these properties is about $364,000. Over the last two years there have been slightly under 48,000 commercial sales; about 30,200 have sold for greater than $250,000, close to 6,200 of them were valued at over $1,000,000, and nearly 640 were appraised at over $10,000,000. Per square foot, the average price of commercial real estate properties in Massachusetts over the last two years is $135 and the average lot size of these properties is 9,040 square feet (92% below the United States average). There are nearly 754,000 commercial properties in Massachusetts, 194% below the country’s average, with a total acreage of over 1,000,000 acres. In terms of commercial mortgages, there are slightly under 1.5 million mortgages for commercial properties throughout the state of Massachusetts. The average value of these commercial mortgages is about $829,000, 144% below the United States average.

    The Boston market is incredibly lucrative and is a wonderful place to take out a commercial mortgage loan. At the moment, development is very prominent in downtown Boston and its surrounding suburbs as we continue to see projects being finished in the Seaport, in Fenway, and at North Station. While Boston might seem oversaturated with commercial real estate properties, it is anticipated that numerous key development spots will be traded this year. We will also see development move beyond Boston itself, with development of certain location in the Dudley Square and parts of Dorchester. While one of the best incentives for developers is what’s known as “opportunity zones”, development this year has been largely impacted by tax credit incentives and other programs. About half of the opportunity zones in Massachusetts are located in lower income “gateway cities,” which happen to also be covered by state incentives like the Housing Development Incentive program. Additionally, The Seaport continues to grow and expand.  Even with the news that General Electric will no longer build an anticipated $200 million development along Fort Point Channel, Boston officials still expect an intense amount of demand for the now-available property. It remains to be seen what will be built in this land, however it is clear that the heavy demand confirms that development and investment in the Seaport is still strong. Thus, Boston and its surrounding suburbs is a great place for investors to look for commercial mortgage financing.

    The Boston multifamily market offers much upside for those commercial real estate investors looking for apartment loans. While Boston’s multifamily market saw remarkable strength after the Great Recession of 2008, those conditions have now moderated moving the rental market from exceptional to simply healthy. Even though the local economy has slightly slowed down, the apartment development pipeline has still been active, with a high level of new apartment and multifamily units to be added to inventory this year. While Boston was among the first cities to recover the jobs it lost in 2008, it has not necessarily had one of the most vigorous recoveries as jobs grew 1.8 percent last year, just .1 percent higher than the national average. However, Boston’s diverse economy is low risk and stable. The city’s economy should perform predictably (but at right below national average rates). With vacancy rates below 4 percent, Boston has maintained an incredibly stable rental market, due to its position as the financial capital of the New England region. Boston’s time-consuming development approval process has created an environment where existing multifamily and apartment projects are well-received by the market. Boston’s above-average land prices and rent levels strongly indicate the ample demand for new supply in the overall multifamily market. Thus, commercial real estate investors should definitely look into receiving an apartment loan in this region.

    2020 Boston Apartment Market Forecast

    Boston Completions vs. Absorption Boston Completions vs. Absorption

    The Boston National Multifamily Index Rank is at 8th place this year as a strong rent gain offsets the tick up in vacancy.

    Employment in Boston is up 0.7%. Building on last year’s 31,200 jobs, employers will add 20,000 workers to payrolls in 2020.

    Construction of apartment units in Boston is expected to exceed 9,700 units. The pace of completions elevates by more than 3,000 units on a year-over-year basis in 2020, increasing the metro’s rental inventory by 2.4 percent.

    Vacancy in Boston is up 40 bps. Nearly 8,000 rentals will be absorbed in 2020, yet the market vacancy will rise to 3.4 percent, ending a three-year stretch of declining unit availability.

    Apartment rent in Boston is up 5.9%. Unwavering tenant demand will support a third consecutive year of strong rent growth, lifting the metro’s average effective rate to $2,550 per month.

    Investment opportunities in Boston remain strong. Private investors seeking sub-$2 million assets in areas of tight vacancy and pronounced rent growth target listings in Boston’s northern outlying submarkets with access to Interstate 495. This is a great place for investors to take out apartment loans to finance their next property.

    Data provided by Marcus & Millichap.

    Boston Vacancy and Rents Boston 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.

    Massachusetts 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.

    Massachusetts 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.

    Massachusetts Multifamily Loan Information and Economic Overview

    The state of Massachusetts provides much potential to investors looking for commercial mortgage financing. This market is heavily driven by the major hospitals, universities and employers in the region. From Boston to Lowell and Waltham to Springfield, there are many significant investment opportunities available to investors. The average value of commercial real estate properties in Massachusetts is just over $780,000 and the median sale price of these properties is about $364,000. Over the last two years there have been slightly under 48,000 commercial sales; about 30,200 have sold for greater than $250,000, close to 6,200 of them were valued at over $1,000,000, and nearly 640 were appraised at over $10,000,000. Per square foot, the average price of commercial real estate properties in Massachusetts over the last two years is $135 and the average lot size of these properties is 9,040 square feet (92% below the United States average). There are nearly 754,000 commercial properties in Massachusetts, 194% below the country’s average, with a total acreage of over 1,000,000 acres. In terms of commercial mortgages, there are slightly under 1.5 million mortgages for commercial properties throughout the state of Massachusetts. The average value of these commercial mortgages is about $829,000, 144% below the United States average.

    The Boston market is incredibly lucrative and is a wonderful place to take out a commercial mortgage loan. At the moment, development is very prominent in downtown Boston and its surrounding suburbs as we continue to see projects being finished in the Seaport, in Fenway, and at North Station. While Boston might seem oversaturated with commercial real estate properties, it is anticipated that numerous key development spots will be traded this year. We will also see development move beyond Boston itself, with development of certain location in the Dudley Square and parts of Dorchester. While one of the best incentives for developers is what’s known as “opportunity zones”, development this year has been largely impacted by tax credit incentives and other programs. About half of the opportunity zones in Massachusetts are located in lower income “gateway cities,” which happen to also be covered by state incentives like the Housing Development Incentive program. Additionally, The Seaport continues to grow and expand.  Even with the news that General Electric will no longer build an anticipated $200 million development along Fort Point Channel, Boston officials still expect an intense amount of demand for the now-available property. It remains to be seen what will be built in this land, however it is clear that the heavy demand confirms that development and investment in the Seaport is still strong. Thus, Boston and its surrounding suburbs is a great place for investors to look for commercial mortgage financing.

    The Boston multifamily market offers much upside for those commercial real estate investors looking for apartment loans. While Boston’s multifamily market saw remarkable strength after the Great Recession of 2008, those conditions have now moderated moving the rental market from exceptional to simply healthy. Even though the local economy has slightly slowed down, the apartment development pipeline has still been active, with a high level of new apartment and multifamily units to be added to inventory this year. While Boston was among the first cities to recover the jobs it lost in 2008, it has not necessarily had one of the most vigorous recoveries as jobs grew 1.8 percent last year, just .1 percent higher than the national average. However, Boston’s diverse economy is low risk and stable. The city’s economy should perform predictably (but at right below national average rates). With vacancy rates below 4 percent, Boston has maintained an incredibly stable rental market, due to its position as the financial capital of the New England region. Boston’s time-consuming development approval process has created an environment where existing multifamily and apartment projects are well-received by the market. Boston’s above-average land prices and rent levels strongly indicate the ample demand for new supply in the overall multifamily market. Thus, commercial real estate investors should definitely look into receiving an apartment loan in this region.

    Massachusetts Apartment Loans

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


    BostonWorcester • Springfield • Lowell • Cambridge • New Bedford • Brockton • Quincy • Lynn • Fall River • Salem