San Jose Multifamily Loans
Select Commercial specializes in San Jose multifamily loans starting at $6 million and above. Whether you're acquiring a large multifamily complex or refinancing a stabilized portfolio, we offer competitive rates, low fees, and expert guidance on multifamily financing across the city of San Jose.
Need a loan under $6 million? Visit our San Jose apartment loan page. For other commercial property types, explore our San Jose commercial mortgage options. To compare all rates nationwide, see commercial mortgage rates.
San Jose Multifamily Loan Rates
Below are our current San Jose multifamily loan rates for properties over $6 million. Looking for a smaller loan? We also offer apartment building loan programs for San Jose properties under $6 million.
| NY Multifamily Loans ($6 million and up) | Free Loan Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Multifamily Loan 5 Yr Fixed | 5.18% | Up to 75% | |
| Multifamily Loan 7 Yr Fixed | 5.23% | Up to 75% | |
| Multifamily Loan 10 Yr Fixed | 5.30% | Up to 75% | |
*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 San Jose multifamily property.
2025 San Jose Multifamily Loan Market Overview
San Jose's multifamily market is entering a record year for new deliveries, with construction concentrated around core Silicon Valley employment hubs. While job growth has softened, priced-out would-be buyers and steady renter demand continue to support fundamentals across the metro's more affordable submarkets.
Multifamily Rent & Occupancy in Q2 2025
Vacancy tracked near 4.0% in March 2025 and is expected to rise toward ~5.0% by year-end as record supply delivers. Average effective rent measured roughly $3,176 per unit as of March, with a 2025 full-year projection around $3,214.
- Silicon Valley posted year-over-year rent growth of about 3.7% into Q2, reflecting firm demand even as supply increases.
Market Trends & Sales Activity
Completions over the 12 months ended March totaled approximately 4,438 units, with 2025 deliveries projected to exceed the 10-year average by ~50%. New supply is concentrated in Santa Clara, Mountain View, Sunnyvale, and West San Jose, while East San Jose has seen limited construction, helping support occupancy there. Recent trades indicate an average price near $380,000 per unit and an average cap rate around 4.6% on metro deals.
Why Investors Look to San Jose for Multifamily Financing
San Jose offers high household incomes, supply constrained submarkets, and resilient demand tied to tech and healthcare. As deliveries peak and the pipeline normalizes, professionally managed assets in undersupplied neighborhoods may see outperformance. Select Commercial structures tailored multifamily commercial real estate loan solutions for $6 million+ to help sponsors capture opportunities across the Silicon Valley metro.
To learn more about your San Jose financing options, reach out today for a customized quote.
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 San Jose multifamily loans. 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
What Lenders Look for in a San Jose Multifamily Loan
What Lenders Look For
Before you apply for a San Jose 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 San Jose 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 San Jose Multifamily Loan Process
We make applying for a San Jose 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 San Jose
At Select Commercial, we provide multifamily financing for a broad range of San Jose 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 San Jose Multifamily Loans
Multifamily loan rates in San Jose 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 San Jose 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 San Jose 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
Agency loans offer nonrecourse financing, competitive fixed- or floating-rate options, leverage up to ~80% LTV, and streamlined execution. They’re ideal for experienced investors targeting well-performing multifamily assets.
San Jose Multifamily Financing
Select Commercial provides multifamily and commercial mortgage loans throughout California, with services available in every city and town. The areas below represent just a few of the markets we serve.