Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Our Specialty
Multifamily Loans
Multifamily loans finance apartment properties of five or more units. In practice, a multifamily loan usually refers to larger balances over $6 million, while an apartment loan refers to financing under $6 million. Select Commercial arranges large-balance multifamily nationwide through Fannie Mae, Freddie Mac, FHA/HUD and CMBS, non-recourse, up to 80% LTV. Compare today’s commercial mortgage rates.
Get a Free QuoteMultifamily Loan Rates
Rates updated as of August 23, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.08% | Up to 80% |
| 7 Year Fixed | 6.19% | Up to 80% |
| 10 Year Fixed | 6.28% | Up to 80% |
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 5.68% | Up to 75% |
| 7 Year Fixed | 5.79% | Up to 75% |
| 10 Year Fixed | 5.88% | Up to 75% |
- Streamlined underwriting for institutional multifamily
- Cash-out refinances are acceptable
- Interest-only and non-recourse options
- Minimum 1.25x debt-service-coverage ratio
Rates last updated August 23, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Multifamily by the Numbers: Q2 2026
The national market stabilized through the first half of 2026 as demand outran new supply. National multifamily market data as of Q2 2026 (July 2026) showed:
- 4.3% national vacancy, up just 10 bps year over year, with absorption outpacing completions for a second straight quarter.
- 167,000 units absorbed in Q2 2026 against 77,700 completed (completions down 14% YoY).
- $2,257 average asking rent, up 1.5% for the quarter and 0.5% year over year.
- $34.9 billion invested in Q2 2026, roughly flat (−2.7%) year over year as buyers re-engage.
For the full year, Yardi Matrix projects about 1.4% national rent growth in 2026 (forecast published December 2025), “a slowdown, not a decline”, with tight-supply markets growing 5% to 6% and oversupplied Sun Belt metros lagging. See which metros lead for investors in our top markets for multifamily investment in 2026.
Apartment Buildings Under $6 Million
Large-balance multifamily over $6 million is only part of what we do. Select Commercial also finances smaller apartment buildings under $6 million, for 5+ unit properties, through Fannie Mae Small Loan, Freddie Mac SBL, bank and credit union programs. If your property is under $6 million, see our apartment loans page for rates and terms.
Compare Your Multifamily Loan Options
Typical starting points for large-balance multifamily over $6 million:
| Program | Typical rate* | Max LTV | Best for |
|---|---|---|---|
| Fannie Mae DUS | 5.68% | Up to 80% | Lowest long-term fixed, non-recourse |
| Freddie Mac Conventional | 5.79% | Up to 80% | Agency execution, fixed or float |
| FHA / HUD | 6.12% | Up to 87% | Highest leverage, up to 35-year terms |
| CMBS | 6.66% | Up to 75% | Non-recourse, flexible credit |
Bank and life company financing are also available for stabilized assets. Most large-balance multifamily lenders look for a minimum 1.25x debt-service-coverage ratio.
Rates last updated August 23, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Programs We Use for Large-Balance Multifamily
As a broker we compare every large-balance option and match your property to the best execution:
Fannie Mae Multifamily
DUS and Small Loan programs, non-recourse, fixed up to 30 years.
Freddie Mac Multifamily
Conventional and SBL programs, up to 80% LTV, fixed or floating.
FHA / HUD Multifamily
Highest leverage and longest fully amortizing fixed terms.
CMBS Loans
Non-recourse conduit financing from $2 million and up.
How Large-Balance Multifamily Loans Are Underwritten
Institutional multifamily underwriting turns on a handful of ratios. Knowing them tells you your likely proceeds before you apply.
- DSCR. Agency and most bank lenders look for a minimum 1.25x debt-service-coverage ratio on stabilized multifamily (Fannie Mae / Freddie Mac terms, 2026).
- LTV. Up to 80% on conventional agency purchases, 75% on many refinances and CMBS, and up to 87% on FHA/HUD for qualifying properties.
- Debt yield. Lenders also test NOI against loan amount as a downside check; healthy large-balance requests clear the high-single-digit thresholds lenders use.
- Amortization & term. Agency loans amortize over up to 30 years (up to 35 on FHA/HUD), with fixed terms of 5 to 30 years and interest-only options on lower-leverage requests.
- Recourse. Most large-balance agency and CMBS multifamily loans are non-recourse with standard “bad-boy” carve-outs.
We size every request against these metrics up front, then match it to the program that delivers the best proceeds and rate.
Source: Fannie Mae / Freddie Mac multifamily program terms, 2026.
Multifamily: 2026 Outlook
Large-balance multifamily spent 2024 and 2025 digesting a historic wave of new supply, and 2026 is the turning point as that pipeline clears.
Vacancy near its peak, now easing. National vacancy held at about 4.3% in Q2 2026 (July 2026 data), up only 10 basis points year over year, with demand outpacing new supply for two straight quarters, at or near the cycle peak before tightening into 2027.
Rents soft but firming. Average asking rent reached about $2,257 in Q2 2026, up 1.5% for the quarter and 0.5% year over year. Yardi Matrix projects roughly 1.4% national rent growth for full-year 2026, with supply-constrained coastal and Midwest markets outperforming oversupplied Sun Belt metros. Investor demand is concentrating in a handful of metros, see our top markets for multifamily investment.
Supply is falling and demand is rebounding. Completions fell about 14% year over year to roughly 77,700 units in Q2 2026, while net absorption reached 167,000 units, less new competition plus recovering demand supports occupancy into 2027.
Agency capital is expanding. In November 2025 the FHFA raised the 2026 Fannie Mae and Freddie Mac multifamily purchase caps to $88 billion each, a combined $176 billion, up 20.5% from $73 billion each in 2025, keeping low-cost agency capital available. Cap rates are expected to hold steady in 2026 with incremental compression as investment volumes recover.
Top Markets for Multifamily Investment in 2026
Where you buy shapes how a deal underwrites. Investor demand in 2026 has shifted toward affordable, high-occupancy Midwest and Sun Belt metros with steady renter demand, while supply-heavy markets clear their construction backlog. The rankings below come from Arbor’s Spring 2026 Top Markets for Multifamily Investment report (data through Q4 2025 to February 2026), scoring the 50 largest metros across ten weighted categories. Nearly 9 in 10 U.S. metros posted year-over-year rent gains heading into 2026.
| 2026 Rank | Market | Finance it | What’s driving the ranking |
|---|---|---|---|
| 1 | Indianapolis | Indiana | Rent growth above the national average for 30 straight months; strong occupancy and affordability |
| 2 | Raleigh | North Carolina | Population inflows, low-tax climate, expanding tech and manufacturing jobs |
| 3 | Salt Lake City | Utah | Absorption well above its historical average; young renter base |
| 4 | Nashville | Tennessee | Highest absorption score in the index; durable in-migration |
| 5 | Milwaukee | Wisconsin | Tight supply and steady Midwest renter demand |
| 6 | Charlotte | North Carolina | Population growth and job expansion; business-friendly taxes |
| 7 | Chicago | Illinois | Deep capital markets, strong search activity, resilient rents |
| 8 | Richmond | Virginia | Stable fundamentals and active capital markets |
| 9 | Phoenix | Arizona | Above-average absorption as its supply wave clears |
| 10 | Columbus | Ohio | Young renter base and steady occupancy |
Also ranked in the 2026 top 20: Seattle, Denver, Atlanta, Cincinnati, Pittsburgh, Kansas City, Hartford, and Orlando & Miami. A separate lens, the PwC/ULI Emerging Trends 2026 survey, leads with Dallas/Fort Worth, Jersey City, Miami, Brooklyn, and Houston.
Rankings: Arbor Realty Trust / Chandan Economics, Spring 2026; PwC/ULI Emerging Trends in Real Estate 2026.
Multifamily Market Snapshots: The Largest Metro Markets
How the biggest apartment markets are performing, using full-year 2025 metrics from 2026 market rankings. Each metro links to our local financing page:
- New York: the nation’s top-ranked multifamily investment market, with $8.3 billion in sales, 3.0% vacancy and 7.0% rent growth, the strongest of any major metro. We finance across Manhattan, Brooklyn and the outer boroughs.
- San Francisco: a rebounding coastal market with 3.3% vacancy, 5.3% rent growth and cap rates near 4.5% as tech hiring and return-to-office lift demand.
- San Jose: 3.6% vacancy and 3.1% rent growth, with the highest per-unit pricing in the country near $488,000 and deep renter demand from the AI employment boom.
- Chicago: a Midwest standout with 3.5% vacancy, 3.7% rent growth and $3.8 billion in sales, where limited new supply keeps existing buildings full.
- Boston: $3.1 billion in sales and steady absorption of nearly 6,000 units, though heavier deliveries pushed vacancy to 6.5% and kept rents flat.
- Atlanta: the volume leader at $16.5 billion in sales and more than 20,500 units absorbed, still digesting supply at 6.0% vacancy, which is creating buying opportunities.
- Miami: 4.3% vacancy with strong in-migration; rent growth cooled to 0.7% as new towers delivered, but absorption stayed healthy at about 5,800 units.
- Washington, DC: $4.4 billion in sales, 4.1% vacancy and dependable government-anchored demand across the district and Northern Virginia.
- Northern New Jersey: among the tightest markets in the country at 3.0% vacancy with 6.2% rent growth, powered by spillover demand from New York.
- San Diego: 4.1% vacancy and premium pricing near $403,000 per unit, with supply constraints supporting long-term rent power.
We also finance heavily in Los Angeles, Dallas, Houston and Phoenix, and in every other metro nationwide. For smaller properties, see our city apartment loan pages; for rankings, see the top markets for multifamily investment.
Refinancing in 2026: $875 Billion Comes Due
An estimated $875 billion of commercial and multifamily mortgage debt matures in 2026, about 17% of the $5.0 trillion outstanding, per the Mortgage Bankers Association’s 2025 Survey of Loan Maturity Volumes (reported February 2026). That is down 9% from the $957 billion due in 2025, a sign the market is moving past the peak of the maturity wall.
Multifamily is the calmest corner of that wall: only about 13% of multifamily balances mature in 2026, well below hotels (30%) and industrial (23%). Owners refinancing maturing bridge, bank, or agency debt this year are re-pricing into a market with expanding agency capacity and stabilizing rates. Select Commercial arranges refinances, including cash-out, across Fannie Mae, Freddie Mac, FHA/HUD, CMBS, bank, and life-company programs, with written pre-approvals within 48 hours.
Source: Mortgage Bankers Association, 2025 Commercial Real Estate Survey of Loan Maturity Volumes.
Multifamily Loans by State
We arrange large-balance multifamily loans nationwide. Explore financing state by state:
- Alabama
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Apartment or Multifamily: What's the Difference?
They finance the same asset: buildings with five or more residential units. In everyday use, an apartment loan usually means financing under $6 million and a multifamily loan means larger balances over $6 million. The distinction matters because larger loans qualify for streamlined institutional underwriting and the tightest agency pricing.
Select Commercial arranges both, so whichever side of the line your property falls on, we can match it to the best program and terms. For smaller properties, see our apartment loans.
Why Finance Multifamily With Select Commercial
With more than 30 years of experience and relationships across agency, bank, CMBS, life company and private lenders, we present large-balance multifamily requests that get a lender’s prompt attention, and we identify the best execution for each property. There are no upfront application or processing fees, and we issue written pre-approvals within 48 hours at no cost or obligation.
What Our Clients Say
“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“I found selectcommercial.com and saw they specialized in apartment building loans. In the end, they were by far the best company I have used. Next time I know who to call first.”
Jerry T. · Long Island, NY“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York CityGet Your Multifamily Rate Quote
No cost, no obligation. Written answers within 48 hours on multifamily loans over $6,000,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up