Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Our Specialty
Multifamily Loans (Over $6 Million)
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 & Terms (Over $6M)
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 5.78% | 80% |
| 7 Year Fixed | 5.74% | 80% |
| 10 Year Fixed | 5.88% | 75% |
- Loan amounts from $6,000,000 and up
- Loan-to-value up to 80% on purchases and 75% on refinances
- Streamlined underwriting for institutional multifamily
- Cash-out refinances are acceptable
- Interest-only and non-recourse options
- Minimum 1.25x debt-service-coverage ratio
Rates are indicative and update with the market. Your rate, LTV and amortization are set by underwriting.
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 | 5.74% | Up to 80% | Lowest long-term fixed, non-recourse |
| Freddie Mac Optigo | 5.74% | Up to 80% | Agency execution, fixed or float |
| FHA / HUD | 5.88% | Up to 87% | Highest leverage, up to 35-year terms |
| CMBS | 6.67% | 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.
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
Optigo 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.
Multifamily: 2026 Outlook
Large-balance multifamily spent 2024 and 2025 digesting a historic wave of new supply, and 2026 is shaping up as the turning point as that pipeline clears.
Vacancy near its peak. National multifamily vacancy sits in the mid-to-high 8% range in 2026, the highest since the post-financial-crisis years, but most forecasts suggest it is at or near its cycle peak before easing in 2027. High-supply Sun Belt metros such as Austin carry the most vacancy, while supply-constrained coastal and Midwest markets are tighter.
Rents soft but stabilizing. Year-over-year rent growth is still below pre-pandemic norms, roughly flat nationally in early 2026 at about $2,200 per month, with the weakest performers in oversupplied Sun Belt markets and firmer results where new deliveries are limited.
Supply is falling and demand is rebounding. Construction completions fell about 30% year over year and are expected to decline further, while net absorption rebounded to roughly 78,000 units in the first quarter. Less new competition plus recovering demand supports occupancy into the second half of the year.
Agency capacity is up. The FHFA raised the 2026 Fannie Mae and Freddie Mac multifamily purchase caps to $88 billion each, a combined $176 billion up about 20.5% from 2025, keeping low-cost agency capital available. Cap rates are expected to hold steady in 2026 with incremental compression later as rates and investment volumes stabilize.
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