New Haven Apartment Loans
Loans from $1 Million to $25 Million+
|New Haven Apartment Loan Rates Over $6,000,000||Rates (start as low as)||LTV|
|Apartment 5 Year Fixed Loan Rates||4.59%||Up to 80%||Get Free Quote|
|Apartment 7 Year Fixed Loan Rates||4.65%||Up to 80%||Get Free Quote|
|Apartment 10 Year Fixed Loan Rates||4.73%||Up to 80%||Get Free Quote|
|New Haven Apartment Loan Rates Under $6,000,000||Rates (start as low as)||LTV|
|Apartment 5 Year Fixed Loan Rates||4.72%||Up to 80%||Get Free Quote|
|Apartment 7 Year Fixed Loan Rates||4.78%||Up to 80%||Get Free Quote|
|Apartment 10 Year Fixed Loan Rates||4.86%||Up to 80%||Get Free Quote|
Select Commercial has excellent New Haven Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of New Haven. Whether you are looking to finance a small apartment building, a complex with hundreds of units, or a co-operative, we can help you find the optimal financing solution to meet your Apartment mortgage loan needs. While we lend across the entire continental US, we are able to give our best rates and loan programs to certain areas that we feel are strong markets. New Haven is one of the cities that we consider to be a premium market and we actively look to originate good quality loans here for our clients. We have a diverse array of many available loan products to help qualified New Haven CT borrowers looking to purchase or refinance an apartment property. We offer apartment loans with terms and amortizations up to 30 years, recourse and non-recourse, and many options for prepayment. We typically approve Apartment building loans within 1 day and usually close within 45 days of application. Our clients love our simplified application process, 24-hour pre-approvals with no-cost and no-obligation, great rates and terms, fast closings and personalized service. If you are looking to purchase or refinance an apartment building, don't hesitate to contact us. For more information on multifamily loans, check out how to get the best rate on a multifamily loan and how to get the best rates on an apartment refinance.
New Haven Apartment Loan Benefits
New Haven Apartment Loan rates start as low as 4.59% (as of June 26th, 2022)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multifamily financing
• Terms and amortizations up to 30 years
• Multifamily loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
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Select Commercial Funding Reviews from TRUSTPILOT
A three year journey
"Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"
New Haven Apartment Loan Types We Serve
If you are looking to purchase or refinance a New Haven apartment building, don't hesitate to contact us. We arrange financing in the city of New Haven for the following:
- Large urban high-rise multifamily buildings
- Suburban garden multifamilycomplexes
- Small multifamily buildings containing 5+ units
- Underlying cooperative multifamily building loans
- Portfolios of small multifamily properties and/or single-family rental properties
- Other multi-family and mixed-use properties
New Haven Apartment Loan Helpful ArticlesHow to Get the Best Rate on a Multifamily Loan
Fannie Mae and Freddie Mac 2022 Update
How To Get The Best Rates On An Apartment Refinance
What Do Underwriters Look for When Evaluating Apartment Loans?
What You Need to Know About Freddie Mac SBL Multifamily Loans
How to Calculate Debt Service Coverage Ratio for Apartment Loans
Apartment Occupancy Levels – Concern in Some Major US Markets
How to Invest in an Apartment Building
Are You Shopping for an Apartment Building Loan?
How to Buy an Apartment Building
What Are Commercial Mortgage Lenders Looking for These Days
How to Qualify for a Great Rate When Refinancing Your Apartment Building
2022 New Haven Apartment Loan Outlook
Investors and Tenants from Adjacent Markets Create Active Demand
Strong demand in 2021 created supply growth in coastal markets. Many apartment builders predict a growth in rentals in southwestern Connecticut, due to the high growth rate in the local multifamily sector. New construction added nearly 2,000 units in 2021, with another 2,300 apartments projected for completion in 2022. Strong development has been the result of last year’s strong rate of job growth from nearby areas and relocation from New York. However, as employment growth stabilizes in 2022, increased construction is expected to create increasing vacancy rates in 2022. Most of this new construction is occurring in the southern section of the market along the Interstate 95-Metro North corridor, which allows commuters access to southern Westchester County and New York City. Workers who commute to New York create strong demand for Fairfield County’s higher-end apartments, but the area has seen strong renter demand growth for Class B units, as well. During Covid-19, New York’s lockdowns caused renters to leave New York for more affordable suburban apartments in New Haven and Fairfield counties, and a large number of these renters are likely to stay due to the area’s similar income level and lower local cost of housing.
Investors are looking at lower investment returns amid strong demand. This strong investor demand lowered returns across all submarkets of the area’s diverse apartment market. In Fairfield County, increased sales activity in Stamford’s downtown has lowered cap rates to roughly 4.5%, while suburban apartment housing dropped to around 5%. Though cap rates in New Haven have usually trended higher than the western portion of the area, the market in 2022 is seeing cap rates as low as those in Fairfield County. New Haven County offers buyers many opportunities in the $1 million to $2 million range. Residents relocating from New York are considering suburban apartments which is providing renewed demand for these apartment units. In addition, Ivy League students and employees in the various trades provide strong demand for urban Class C apartment units.
2022 Apartment Market Forecast and New Haven Apartment Loan EconomicsNew Haven has a National Multifamily Index ranking of 42. The very low ranking in the 2022 survey is due to low rent growth and increasing vacancy rates.
Employment is up 1.6%. After last year’s large increase, the market adds 12,000 new jobs in 2022, the second highest net increase in 25 years. Construction adds 2,300 new apartment units. New apartment completions are expected to surpass 2021’s steady pace during 2022, with developers adding about 350 more units than completed in 2021.
Vacancy rates up 50 basis points. Employment growth is mitigated by a large volume of new apartments, increasing vacancy rates to 3.1%, the largest increase in the market since 2015.
Apartment rents are up 2.2%. Effective rent increases slow after surpassing $2,000 per month in 2021, slowing to 2.2% as year-over-year rent growth returns to normal levels.
Investment in New Haven apartments. Investment from New York increases as investors flock to markets with easier regulations, causing downward pressure on cap rates on all asset classes.
New Haven apartment loan rates will start to increase in 2022 as the Federal Reserve starts raising rates to slow the rate of inflation. We will be watching to see if the New Haven apartment loan rate increases will affect market activity in 2022.
All data provided by Marcus and Millichap
2021 New Haven Apartment Market and Trends
After the Covid- 19 pandemic, the New Haven multifamily market is beginning to recover in 2021. Employment is expected to increase 2.6 percent this year. That is an increase of 19,000 jobs in 2021 which should offset a significant number of jobs lost during the pandemic. About 2,500 new units are set to be completed in 2021. This amounts to about 2.1 percent of the current inventory. Vacancy rates in New Haven are expected to decrease in 2021. They should come down about 3.7 percent, or 60 basis points. As vacancy rates decrease, rents are expected to increase 4.7 percent in 2021. The average effective rent in 2021 should hit $1,980 per month. As vaccine rollouts continue in 2021 and the economy continues to open up, the multifamily market in 2021 should continue to heat up.
2021 Multifamily Outlook
The COVID-19 pandemic affected the ability of young graduates to find jobs and move into apartments of their own. The demand for apartment rentals is usually fueled by young graduates entering the workforce and moving into rental apartments. Many young adults lived with their parents or friends during the pandemic and into early 2021. As 2021 progressed, many companies reopened their offices and began hiring again which generated record levels of new apartment rentals. This trend should continue through late 2021 as more new workers are able find jobs and move into their own apartments. Many of these new multifamily units are in metro areas of the sunbelt states as workers have been moving out of colder urban areas in favor of more suburban warmer climates.
The tight market in 2021 for new home purchases has caused many would be homebuyers to continue renting. Prices for existing homes have risen due to lack of inventory and the cost of construction has skyrocketed due to increased costs for raw materials. The high cost of purchasing a new or existing home is keeping the demand for rental units very strong in 2021.
During the pandemic, when workers were either out of work or working from home, many people moved out of densely populated urban areas in favor of suburban locations. In 2021, as more employees are returning to their offices, we are seeing demand pick up once again for rental apartments in urban locations. In addition, as more and more retail and dining locations reopen in downtown areas, we expect to see a return of employees to these areas.
During the pandemic, the CDC and local governments instituted a moratorium of evictions. This caused many landlords to suffer economic losses and depressed the value of apartment properties. In 2021, as these moratoriums start to expire, we expect to see strong demand from investors for these properties.
Nationwide, the first half of 2021 saw more than 175,000 new apartments completed and a total of 363,000 for the previous 12 months. A high percentage of these new units were in Texas and other sunbelt states, as more and more people are relocating to warmer climates. Occupancy rates and asking rents have been lower in larger urban markets in the Northeast and other colder climates, while occupancy rates and asking rents have been increasing in these warmer sunbelt climates. These 2021 trends have definitely been driven by the COVID-19 pandemic and we are watching these trends closely to see if these trends persist after the pandemic is over. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.
What Happened with Apartment Loans in 2020
Greater Development Nudges Vacancy Up; New York Investors Find Higher Yields, Less Rent Restriction
New Haven construction activity inches vacancy up from historical lows. The two-county region continues to exhibit slow-but-steady job creation across a range of disciplines this year, driven by the presence of multiple Fortune 500 companies. Employment opportunities are supporting household formations, adding new apartment demand to the current pool of renters. Multifamily leases are also sought by residents who work in New York but opt for longer commutes in favor of less costly apartment rents. These two sources of multifamily housing demand have contributed to a multiyear decline in the market’s overall vacancy rate, down 210 basis points since 2016 to 3.9 percent at the end of last year. That trend will be tested in 2020 as operations receive upward pressure from the largest annual apartment delivery total recorded so far this business cycle. Development activity is advancing the most in New Haven, with more than 1,700 multifamily units slated to come online by year end. Many of these arrivals are near major highways and railways, reflecting the transit needs of tenants. Finalizations will also come to downtown Stamford and Harbor Point, where years of development have created a live-work-play environment. Investors looking to purchase property in the New Haven market should definitely look into taking out an apartment loan to finance their acquisition.
New Haven and Bridgeport lead a near-cyclical-high level of sales velocity. Apartment vacancies near historical lows have bolstered investor sentiment, supporting an elevated level of transaction velocity compared with earlier in the decade. Buyers continue to be active within the city of New Haven, where organizations with more than $20 million in available capital target Class B multifamily assets downtown near Yale University and other major employers. Investors in the $1 million to $10 million tranche are also acquiring smaller Class C apartment properties in the city, as well as in the Bridgeport area with greater frequency. Such properties serve renters priced out of the market’s other multifamily rental options. Despite fewer listings, investor demand for downtown Stamford and Harbor Point assets contributes to above-market pricing, with a greater supply of post-2000 construction available. New Haven is a great market for investors to finance their next apartment purchase with a multifamily loan.
2020 New Haven Apartment Market Forecast
The New Haven National Multifamily Index Rank is at 46, down 7 places. A large construction pipeline, rising vacancy and slowing employment gains and rental growth result in New Haven dropping in the 2020 NMI.
Employment in New Haven is up 0.3%. The employment base will grow for the third year in a row as the region’s employers create 2,600 positions this year after 3,000 jobs were created last year.
Construction in New Haven is expected to exceed 2,200 apartment units. The pace of completions is picking up in New Haven for 2020 as about 900 more apartments will be delivered compared with the development total from 2019.
Vacancy in New Haven is up 20 bps. Elevated construction will help push the region’s vacancy rate up to 4.1 percent, following a 60-basis-point drop last year.
Rent in New Haven is up 1.8%. The average effective rent will climb to $1,852 per month this year, following a 2.4 percent increase in 2019.
Investment opportunities in New Haven remain strong for those looking to finance their next purchase with an apartment loan. New York-based investors, already active in southern Connecticut due to higher cap rates, may increase their presence in the region following new rent controls imposed at home. We highly recommend any investors looking to buy in the New Haven market to reach out to us regarding a multifamily loan.
Data provided by Marcus & Millichap.
Apartment Loan Trends in 2020
At the start of 2020 the market outlook did not indicate any significant factors that would cause major trouble in the multifamily market. Market indicators suggested that demand for housing, especially for apartment rentals, would remain healthy, thus continuing to generate new construction of multifamily buildings. Both the high number of permits and starts over the past couple of years led experts to believe that developer confidence is very high in the multifamily market. Market experts predicted an annual completion of 340,000 apartment units over 2020, way above the 300,000-annual average for the past five years. Over the last couple of years, the multifamily market has seen absorptions outperform expectations due to both changes in lifestyle and demographic preferences and new supply has consistently taken longer to be built. These two factors have helped the market to perform stronger than expected in the past and should continue throughout this year. Market data indicated that rent growth would remain strong in 2020, growing 3.6% (which is above the historical average). In terms of mortgage origination, low interest rates and strong multifamily performance were expected to help loan volumes grow. Experts predicted that the origination volume in 2020 will increase by 5.7% to $390 billion. Market data indicated that cap rates have more room to decline, which would lead to increasing property values and should drive up origination volume. However, with the current outbreak of Covid-19, the overall economy has been in flux. The stock market has crashed and commercial mortgage interest rates have been severely impacted. Huge metros such as New York have all but shut down much economic activity and entertainment. In this unsteady climate, many investors are scared to purchase commercial real estate and to take out commercial mortgages and apartment loans. Additionally, the oil industry has taken a big hit. Not only are people traveling less due to the pandemic, foreign countries like China and Russia are involved in a huge price war which is driving the price of oil way down. Experts are hopeful that as the weather warms up and public health policy learns how to handle this pandemic, the economy should revert back to its pre-virus strength.
New Haven Apartment Loan Options
New Haven Freddie Mac Apartment loans
New Haven Freddie Mac Multifamily Loans provide mortgage capital in the secondary market for apartment building loans. Together, Fannie Mae and Freddie Mac control a very large portion of the multifamily loan market. Freddie Mac has a very aggressive program for small balance apartment loans (from $1,000,000 to $7,500,000). Some features of this program include:
- Market size driven. Freddie Mac classifies loans by the size of the overall market: Top, Standard, Small, and Very Small. Rates are best in top market locations (major metropolitan areas).
- Capped costs. Freddie Mac lenders often cap the closing costs at a fixed dollar amount, thereby lowering the overall cost to borrow money.
- Flexible pre-pay penalties. Freddie Mac offers many options for pre-payment penalties, from yield maintenance to step-down to “soft” step-down.
- Interest-Only (I/O) loans. Freddie Mac will allow payments consisting of only interest and no amortization of principal.
- Fixed rate terms. Freddie Mac offers fixed rates of 5, 7, and 10 years, followed by an adjustable period. These loans are called Hybrid/Adjustables. Loans have a 20 year term and a 30 year amortization schedule.
New Haven Fannie Mae Apartment loans
The New Haven Fannie Mae multifamily loan platform is one the leading sources of capital for New Haven apartment building loans in the US. Fannie Mae is a leader in the secondary market – meaning they purchase qualifying apartment loans from leading lenders who originate these loans for their borrowers. Fannie Mae purchases loans secured by conventional apartments, affordable housing properties, underlying cooperative apartment loans, senior housing, student housing, manufactured housing communities and mobile home parks on a nationwide basis. The Fannie Mae platform has many benefits, including:
- Long term fixed rates and amortizations. Fannie Mae allows terms and amortizations of up to 30 years. Most banks offer only 5 or 10 year fixed rates and 25 year amortizations.
- Non-recourse options. Most banks will require the borrower to sign personally for the loan. Fannie Mae offers non-recourse apartment loans.
- Lending in smaller markets. Many national lenders do not like to lend in rural or tertiary markets. Fannie Mae is a good option for these loans.
- Assumability and Supplemental Financing. Fannie Mae allows their loans to be assumed by a qualified borrower. They also have a program which allows borrowers the ability to come back and borrow additional funds during the life of the loan (subordinate financing).
New Haven FHA HUD Multifamily Loans
HUD (Department of Housing and Urban Development) and FHA (Federal Housing Administration) insured multifamily loans are some of the best financing options for real estate investors and developers. While HUD does not directly make these loans, they do insure multifamily loans made by third party lenders to real estate investors. The third party lender will process the loan in accordance with the FHA HUD guidelines and HUD will underwrite the loan in order to provide the insurance. There are two primary types of HUD insured loans that multifamily investors can take advantage of.
New Haven Apartment Lending with Banks and Other Programs
While the agencies (Fannie Mae, Freddie Mac and HUD) offer some excellent programs, not every apartment loan applicant qualifies for these programs. We have many excellent choices for these loans with our correspondent banks, credit unions, insurance companies and private lenders. Some examples of these loans include:
- New Haven Multifamily loans that require flexible underwriting or those that don’t meet standardized criteria.
- Properties in less than desirable markets, or those that require repairs or updating.
- Properties that don’t cash flow according to industry guidelines or lack stabilized cash flow.
- Borrowers with past credit issues, including foreclosures, short sales, or judgements.
- Borrowers who are not US citizens.
Whether you are purchasing or refinancing, we have the right solutions available for your multifamily mortgage loans. We will entertain apartment loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.
New Haven Apartment Building Loans
Belltown • Camp Avenue • City Center • Club Road • Cummings Park • Eden • High Ridge • Ledgebrook • North Stamford • Nottingham • Ridgeway • Rippowam • Shippan Point • South End • Springdale • The Cove • Turn of River • Upper Newfield • Waterside • Westover • West Side