Alabama · Over $6 Million
Alabama Multifamily Loans
Select Commercial arranges Alabama multifamily loans, with rates as low as 6.14%, up to 80% LTV and non-recourse agency options. We compare Fannie Mae, Freddie Mac, FHA/HUD and CMBS. For loans under $6 million, see Alabama apartment loans. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in Alabama
Alabama apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See Alabama apartment loans and Alabama commercial mortgages.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
Alabama Multifamily Loan Rates
Rates updated as of October 24, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.14% | Up to 80% |
| 7 Year Fixed | 6.17% | Up to 80% |
| 10 Year Fixed | 6.21% | Up to 80% |
- Streamlined underwriting for institutional multifamily
- Cash-out refinances are acceptable
- Interest-only and non-recourse options
- Minimum 1.25x debt-service-coverage ratio
Alabama Apartment Loans
For smaller apartment building loans, under $6 million
Rates last updated October 24, 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.
Alabama Apartment Building Loans
Not every Alabama apartment property is over $6 million, and we finance smaller buildings too. For 5+ unit Alabama apartment properties from $1,500,000 to $6 million, see our Alabama apartment loans page for Fannie Mae Small Loan, Freddie Mac SBL, bank and credit union options.
Compare Alabama Large-Balance Programs
As a broker we place your large-balance Alabama multifamily loan with the right capital source. Typical starting points for properties over $6 million:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Fannie Mae DUS | 6.14% | Up to 80% | Non-recourse, fixed to 30 yrs |
| Freddie Mac | 6.17% | Up to 80% | Non-recourse large-balance |
| FHA / HUD | 6.74% | Up to 85% | Highest leverage, 35-yr amortization |
| CMBS / conduit | 7.03% | Up to 75% | Non-recourse, flexible underwriting |
Most large-balance lenders look for a debt-service-coverage ratio (DSCR) of at least 1.25x. For properties under $6 million, see our Alabama apartment loans.
Rates last updated October 24, 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.
2026 Alabama Multifamily Investment and Lending Outlook
Alabama’s large-balance multifamily market runs on two metros, and they are not behaving the same way.
Birmingham traded roughly $532 million across 5,115 units in 25 transactions over the twelve months ending November 2025, according to Kirkland’s market review. Huntsville recorded about $165.8 million across 10 transactions for fiscal 2025, at a 6.1% average cap rate and roughly $160,000 per unit, per Matthews. Huntsville prices higher per door than Birmingham because its inventory is newer, not because its operations are stronger.
Vacancy is the problem both metros share. Birmingham sat near 13.0%, a level that market report described as among the highest in more than twenty-five years. Huntsville measured about 17.7%, but that figure counts the whole market including properties still in initial lease-up, and lease-up communities there were only about 54.8% occupied. Stabilized Huntsville product reads materially better. The two numbers answer different questions, and a lender will ask which one your rent roll belongs to.
Capital is local as well as national. Regions Financial, headquartered in Birmingham, carried about $9.97 billion of investor real estate loans against $99.2 billion of total loans as of the second quarter of 2026, so Alabama borrowers are competing for balance-sheet capacity with the rest of that bank’s footprint.
The practical read for 2026: Alabama deals are being sized on trailing collections rather than on market rent, and a property with a documented occupancy history is worth more proceeds here than one with a better pro forma.
Two Alabama Rules That Change the Numbers Before Closing
Alabama has two statutory features that out-of-state borrowers routinely miss, and both of them hit larger loans harder.
First, rental apartments are Class II property. Alabama assesses Class II at 20% of fair market value. Owner-occupied single-family residential is Class III, assessed at 10%. Same appraised value, double the assessed base. Amendment 373 caps total ad valorem tax at 1.5% of market value for Class II against 1.0% for Class III. Alabama has genuinely low property taxes by national standards, which is why this trips people up: the state’s reputation is built on the homeowner number, and your property is on the other schedule. Underwrite the Class II line, not the figure a residential comparison suggests.
Second, the mortgage recording tax has no ceiling. Under Sections 40-22-1 through 40-22-12 of the Code of Alabama 1975, recording a mortgage costs $0.15 per $100 of indebtedness, or fraction thereof. That is 0.15% of the loan amount, with no cap. On a $4 million loan it is $6,000. On a $20 million loan it is $30,000, and on a $40 million loan it is $60,000. In states that cap recording tax, this line is a rounding error. In Alabama it scales with your loan, which means it belongs in the sources and uses from the first draft rather than appearing at the closing table.
Deeds are taxed separately at $0.50 per $500 of value, so an acquisition carries both charges while a refinance carries only the mortgage tax. That spread is one reason Alabama owners tend to refinance in place rather than trade, and it is worth modeling both ways before you commit to a strategy.
Neither rule disqualifies a deal. Both of them move the debt service coverage calculation, and the recording tax moves the cash you need at closing. Get them into the model early and the rest of an Alabama file is conventional.
Alabama Multifamily Loan Programs
As a broker, we compare every large-balance program to find your best fit:
Recent Multifamily Loan Closings
A sample of apartment and multifamily loans we have arranged for investors nationwide.
Alabama Multifamily Markets We Serve
We arrange large-balance multifamily loans throughout Alabama, including:
Other Property & Loan Types We Finance in Alabama
As a full-service commercial mortgage broker, we arrange Alabama financing across every major property and loan type:
We consider commercial loan requests of all sizes, beginning at $1,500,000.
What Our Clients Say
“As a real estate attorney, I trust that Select Commercial will deliver commercial mortgages in a timely manner. My clients are always handled professionally, and the rates and terms are excellent. I heartily recommend them.”
David S. · New York City“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“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MAGet Your Alabama Multifamily Loan Quote
No cost, no obligation. Written answers within 48 hours on Alabama 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