California Multifamily Loan Rates
| CA Multifamily Loan Rates More Than $6 Million | Free Loan Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Multifamily Loan 5 Yr Fixed | 5.30% | Up to 80% | |
| Multifamily Loan 7 Yr Fixed | 5.34% | Up to 80% | |
| Multifamily Loan 10 Yr Fixed | 5.40% | Up to 80% | |
*Rates start as low as shown and are based on underwriting criteria, borrower experience, and property strength.
Ready to get started? Click here to request a customized loan quote for your California multifamily property.
Need a loan under $6 million? Visit our California apartment loan page. For other commercial property types, explore our California commercial mortgage options. To compare all rates nationwide, see commercial mortgage rates.
Why Choose Select Commercial for Multifamily Loans
What sets Select Commercial apart from traditional lenders and large banks? In this short video, we highlight the key reasons multifamily building investors choose to work with us for California multifamily loans over $6 million. We also actively finance apartment building loans below $6 million.
Here’s what the video touches on:
- No upfront application or processing fees
- Fast written pre-approvals often within 24 hours
- Access to a wide range of multifamily lenders, not just one bank
- Loan structures tailored to your property and investment goals
2026 California Multifamily Loan Market Overview
Entering 2026, California remains one of the most supply-constrained environments for California multifamily loans in the country. High barriers to homeownership, limited land availability, and strict development conditions continue to support renter demand across the state. For borrowers working with California multifamily lenders, this creates a market where long-term fundamentals, occupancy stability, and asset quality drive underwriting decisions.
Los Angeles Anchors California Multifamily Loan Activity
Los Angeles continues to serve as the largest and most influential multifamily market in California. In 2026, the metro is projected to add about 6,000 jobs, deliver roughly 6,200 units, maintain vacancy near 4.3%, and reach average effective rent around $2,950 per month. For sponsors seeking multifamily financing, Los Angeles provides scale, liquidity, and a more balanced supply-demand profile than many high-growth markets.
San Diego Adds Coastal Stability to the Multifamily Market
San Diego offers another strong multifamily market characterized by tight fundamentals and sustained demand. The 2026 outlook calls for approximately 6,000 jobs added, about 2,200 units delivered, vacancy near 4.0%, and average rent near $2,880 per month. For California multifamily lenders, this reflects a stable coastal market supported by continued housing constraints.
San Jose Reinforces High-Barrier Multifamily Dynamics
San Jose adds a unique high-barrier profile within the California multifamily landscape. Despite a projected decline of roughly 2,000 jobs, the metro is expected to deliver only about 500 units, maintain vacancy near 3.5%, and reach average effective rent of approximately $3,438 per month. This limited supply environment continues to support underwriting for multifamily commercial real estate loans.
Rent Levels Remain Elevated Across California Markets
California continues to maintain some of the highest rent levels in the country. Los Angeles is projected near $2,950 per month, San Diego near $2,880 per month, and San Jose near $3,438 per month. For borrowers utilizing California multifamily loans, these rent levels support underwriting across a wide range of asset types, particularly where occupancy remains stable.
2026 California Multifamily Loan Market Forecast
- Employment: Los Angeles and San Diego are each projected to add about 6,000 jobs, while San Jose sees a modest decline.
- Construction: Deliveries remain limited relative to demand, especially in high-barrier metros.
- Vacancy: Vacancy is expected to remain low across major California markets.
- Rent: Rent levels remain among the highest nationally, supporting long-term asset performance.
For investors evaluating California multifamily loans, 2026 reflects a high-barrier market defined by supply constraints and strong renter demand. Los Angeles offers scale, San Diego provides coastal stability, and San Jose represents one of the tightest supply-demand environments in the country. Together, these markets create a strong foundation for borrowers working with California multifamily lenders.
2026 Los Angeles California Multifamily Loan Market Overview
Los Angeles remains one of the largest multifamily markets in the country and a key driver for California multifamily loans. With approximately 6,000 jobs added, 6,200 units delivered, vacancy near 4.3%, and rent around $2,950 per month, the market supports stable underwriting for larger balance multifamily financing.
Los Angeles Multifamily Financing in 2026
Financing remains active for stabilized and well-located properties. Borrowers working with California multifamily lenders will find that underwriting is closely tied to asset quality, operating performance, and location within the metro.
Trends in the Los Angeles Multifamily Market
Los Angeles continues to benefit from limited supply growth and persistent housing demand. These factors support long-term relevance for multifamily investors targeting core markets.
Los Angeles Multifamily Rent Levels in 2026
Average rent near $2,950 per month supports a wide range of multifamily financing strategies where occupancy and tenant retention remain strong.
Los Angeles Multifamily Supply and Demand
Supply and demand remain balanced, with limited development helping maintain stable vacancy levels across the metro.
Opportunities for Multifamily Investment in Los Angeles
Investors are focused on stabilized assets, infill opportunities, and long-term holds supported by strong demand and limited new supply.
2026 San Diego California Multifamily Loan Market Overview
San Diego remains one of the tighter markets for California multifamily loans, supported by strong demand and limited supply expansion.
San Diego Multifamily Financing in 2026
San Diego offers a more conservative underwriting profile, making it attractive for long-term multifamily investors.
San Diego Multifamily Rent Levels in 2026
Average rent near $2,880 per month continues to support stable multifamily performance.
San Diego Multifamily Supply and Demand
Limited deliveries and strong renter demand help maintain a balanced market environment.
2026 San Jose California Multifamily Loan Market Overview
San Jose offers one of the tightest multifamily supply-demand dynamics in the country, making it a strong high-barrier market for California multifamily lenders.
San Jose Multifamily Financing in 2026
Extremely limited supply supports stable occupancy and long-term investment strategies.
San Jose Multifamily Rent Levels in 2026
Average rent near $3,438 per month remains among the highest in the U.S.
San Jose Multifamily Supply and Demand
Minimal new construction and low vacancy create one of the strongest multifamily setups in the country.
What Lenders Look for in a California Multifamily Loan
What Lenders Look For
Before you apply for a California Multifamily loan, it helps to understand what lenders are actually evaluating. In this short video, Select Commercial President Stephen Sobin outlines the key borrower and property qualifications that influence approval.
Watch to learn:
- What makes a loan request stand out or get rejected
- The importance of cash flow, occupancy, and borrower experience
- Which documents lenders require to issue a pre-approval
Understanding Your Multifamily Loan Options
Multifamily Loan Lending Options
Not all multifamily loans are created equal. In this short video, Stephen Sobin explains the most common types of multifamily loan programs and when each one makes the most sense for California borrowers.
- Bank vs. agency vs. private multifamily lenders
- Short-term vs. long-term fixed-rate options
- How to structure your loan based on your property and investment goals
Our California Multifamily Loan Process
We make applying for a California multifamily loan fast, transparent, and cost-effective. Our process is designed for borrowers seeking large balance multifamily financing backed by experienced multifamily lenders. Below is a step-by-step overview of what to expect when working with Select Commercial:
Step 1: Initial Screening
During an introductory call or email, we gather the basics of your transaction. If the request doesn’t meet multifamily loan guidelines, we’ll let you know right away.
Step 2: Document Request
If eligible, we’ll send a short checklist to review your financials, credit, and property cash flow. This helps us evaluate your multifamily commercial real estate loan scenario.
Step 3: Underwriter Review
Once documents are received, underwriting begins. If your multifamily loan qualifies, we issue a written pre-approval. If not, we’ll explain why.
Step 4: Pre-Approval Letter
If approved, we send a detailed pre-approval letter outlining preliminary terms and any additional documentation needed.
Step 5: Third-Party Reports
Once pre-approved, the underwriter orders the appraisal and other required third-party reports. A good faith deposit is collected to cover these costs.
Step 6: Final Submission
Once all documentation and reports are in, underwriting is finalized and a formal multifamily loan commitment is issued.
Step 7: Legal & Closing
Our legal team prepares the closing checklist and any final conditions. Once satisfied, we move forward with closing.
Step 8: Timeline
Most multifamily loans close within 30 to 60 days, depending on deal complexity and how quickly documents are submitted.
Multifamily Property Types We Finance in California
At Select Commercial, we provide multifamily financing for a broad range of California multifamily properties, from stabilized 5+ unit buildings to large-scale portfolios. Whether your asset is urban, suburban, or mixed-use, we tailor each multifamily commercial real estate loan to match your investment strategy and property type.
- Urban mid-rise and high-rise multifamily buildings
- Suburban garden-style multifamily complexes
- Small multifamily buildings with 5+ units
- Mixed-use properties with residential and limited commercial space
- Underlying co-op building loans
- Portfolios of small multifamily or single-family rental properties
- Stabilized properties with solid cash flow and rent history
If you're unsure whether your property qualifies for a multifamily loan, contact us for a free quote and we'll review your deal within 24 hours.
Recent Multifamily Loan Closings
Our Reviews
Latest Expert Insights from Stephen A. Sobin
Stephen A. Sobin, the president of Select Commercial Funding LLC, is a renowned expert in the field of multifamily financing. His insights and perspectives are regularly sought by leading industry publications. Here are his latest contributions that highlight his deep understanding of the multifamily financing landscape and his commitment to providing clear, insightful analysis on key industry issues.
Navigating Opportunity, Risk as 2025 Winds Down
In an article for Commercial Property Executive titled "Navigating Opportunity, Risk as 2025 Winds Down", Sobin explains as we head into the final stretch of 2025, the commercial real estate industry stands at a pivotal moment. After several years of upheaval—from pandemic disruptions to aggressive Federal Reserve rate hikes and lasting shifts in how people live and work—the sector is entering a new phase.
Why Lower Rates Haven't Fixed Commercial Real Estate
In an article for Wealth Management titled "Why Lower Rates Haven't Fixed Commercial Real Estate", Sobin explains that even as the Federal Reserve has begun cutting rates and borrowing costs should be falling, the commercial real estate sector remains locked in a frustrating stalemate. For high-net-worth investors trying to time the market, he emphasizes that understanding this disconnect requires looking beyond the headlines.
Why the Fed Rate Cut’s a Game Changer for CRE
In an article featured in Multi-Housing News, Stephen Sobin highlighted that after months of speculation and market anticipation, the Federal Reserve finally pulled the trigger last week, cutting the federal funds rate by 25 basis points to 4.00 to 4.25 percent. read the full article.
Inflation's Current Impact on Apartment
In an article featured in Multi-Housing News, Sobin explains how commercial mortgage rates continue to challenge investors, with elevated inflation depressing real estate market activity. Read the full article.
Will the July Jobs Report Pressure the Fed to Act?
Sobin noted in Multi-Housing News that unemployment hit a three-year high and job creation slowed significantly, factors that could push the Fed to reconsider future rate hikes. Read the full article.
Persistent Inflation and Its Effects on CRE
In an article featured in Multi-Housing News, Stephen Sobin highlighted that while inflation is still a challenge for the Federal Reserve, there are many positive signs for the commercial real estate industry. The headline Consumer Price Index rose 3.2 percent for the year ended Feb. 29, a figure 20 basis points lower than the Dec. 31, 2023, rate. read the full article.
Commercial Spotlight: Mid-Atlantic Region In this four-state powerhouse, smaller metros are thriving.
In a feature in Scotsman Guide, the Mid-Atlantic Region's real estate dynamics are explored, highlighting its resilience and growth amidst the pandemic.
Stephen Sobin of Select Commercial Funding LLC shared insights on the New York market's allure and the challenges buyers face. He noted the shift from primary urban areas to tertiary markets due to evolving preferences and financial conditions. For a deeper dive into Sobin's analysis, read the full article.
What the New Jobs Report Means for CRE
In an article titled "What the New Jobs Report Means for CRE" in Commercial Property Executive, Stephen Sobin shared his perspective on the latest jobs report and its implications for the Commercial Real Estate (CRE) sector. He highlighted the challenges posed by high interest rates and the prevailing uncertainty in the market. Sobin remarked, "Sellers aren’t selling, buyers aren’t buying... Everyone is waiting because no one knows what to expect." For a detailed analysis and more of Sobin's insights, read the full article.
Decoding "Junk Fees" in Rental Housing
In another latest contribution to Multi-Housing News, Sobin provided expert commentary in an article titled "What's Next for Junk Fees? The Industry Weighs In". He clarified the difference between legitimate fees collected for various third-party services and so-called "junk fees". Sobin emphasized the importance of borrowers understanding their rights in negotiating all loan terms and the obligation of lenders to disclose all fees.
Understanding the Impact of Federal Reserve's Decisions
In a recent article titled "How the Fed's Pause on Interest Rates Impacts Multifamily" published by Multi-Housing News, Sobin shared his expert insights on the Federal Reserve's decision to pause interest rate hikes. He accurately predicted that the Fed would not raise rates in June, citing recent bank failures and lingering concerns about a potential recession.
Stay tuned for more expert insights from Stephen A. Sobin on the evolving multifamily financing landscape.
Frequently Asked Questions About California Multifamily Loans
Multifamily loan rates in California depend on several factors including loan size, property condition, borrower strength, and leverage. As of 2025, interest rates remain elevated due to persistent inflation, but high-quality borrowers with strong assets can still secure competitive terms. For other property types, view our latest commercial mortgage rates for updates.
Lenders generally require a DSCR of 1.25 or better, strong borrower credit, relevant experience, and post-closing liquidity. For large balance multifamily commercial real estate loans, loan-to-value ratios typically range from 65% to 80%, depending on cash flow.
Large balance multifamily financing requires tailored solutions. Select Commercial works with a wide range of capital sources, including banks, life companies, CMBS, agency, and private lenders, giving you access to more options, better terms, and higher certainty of execution.
The process begins with a review of property-level financials, including a current rent roll, trailing 12-month operating statement, borrower net worth, liquidity, and experience. Our team quickly assesses eligibility and provides a pre-approval when qualified. Start with a Free Quote today.
Select Commercial also specializes in loans under $6 million. If you're refinancing a smaller apartment loan, we can help structure multifamily financing with competitive rates and flexible terms. Visit our California apartment loan page for details.
Agency Large‑Balance Multifamily Loan Programs (Over $6 Million)
Select Commercial connects borrowers with premier agency-backed large-balance multifamily loan programs, perfect for financing institutional-scale properties across California and beyond.
- Fannie Mae® Multifamily (DUS® platform) – Large‑balance non‑recourse multifamily financing, including fixed, floating, hybrid‑ARM, and interest‑only options
- Freddie Mac® Multifamily – Comprehensive large‑balance multifamily financing (fixed and floating) with up to $250 M in loan capacity
These agency programs offer non‑recourse structures, competitive fixed or floating rates, strong leverage (typically up to ~80 % LTV), and streamlined execution, ideal for experienced investors pursuing well‑performing multifamily assets.
Looking for loans under $6 million? Visit our dedicated California apartment loan page for smaller-balance financing options.
California Multifamily Financing
Select Commercial provides multifamily loans and California commercial mortgages throughout the state of California including but not limited to the areas below.