New York Multifamily Loans
To see a comprehensive overview of all our loan products and rates available nationwide, visit our commercial mortgage rates page.
New York Multifamily Loan Rates - Updated 3/29/25
| NY Multifamily Loans Over $6 Million | Free Loan Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Multifamily 5 Yr Fixed | 5.35% | Up to 80% | |
| Multifamily 7 Yr Fixed | 5.36% | Up to 80% | |
| Multifamily 10 Yr Fixed | 5.39% | Up to 80% | |
| NY Multifamily Loans Under $6 Million | Free Loan Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Multifamily 5 Yr Fixed | 5.70% | Up to 80% | |
| Multifamily 7 Yr Fixed | 5.72% | Up to 80% | |
| Multifamily 10 Yr Fixed | 5.75% | Up to 80% | |
New York Multifamily Loan Benefits
New York Apartment Loan rates start as low as 5.35% (as of March 29th, 2025)
• 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
Our Reviews
New York Multifamily Loan Market Overview 2025
The multifamily real estate market in New York (NY) is poised for a strong year in 2025, with increased demand for apartment building loans and multifamily financing. The Federal Housing Finance Agency (FHFA) has raised loan purchase caps for Fannie Mae and Freddie Mac, signaling optimism for the sector. With steady demand for rental housing and evolving investment trends, securing the right apartment loans through trusted multifamily lenders will be essential for investors and property owners.
Increased Multifamily Loan Purchase Caps in 2025
The FHFA has set the 2025 agency multifamily loan purchase caps at $73 billion per agency, a 4% increase from 2024. This brings the total to $146 billion, ensuring ample liquidity for apartment building financing. These adjustments reflect confidence in the multifamily sector and aim to support affordable housing through continued mission-driven lending requirements.
Historically, agency loan purchase caps have been adjusted to maintain a balanced share of the multifamily commercial real estate loan market. The 2025 increase suggests that overall financing volume will exceed previous years, reinforcing the importance of working with experienced apartment lenders like Select Commercial to secure competitive loan terms.
New York Apartment Loans and Market Trends
New York's multifamily market remains one of the most competitive in the country. Although the city has seen a surge in new housing supply, demand remains high. Vacancy rates are projected to rise slightly but remain below historical averages. Rental rates are expected to grow modestly, making it a prime time for investors to explore multifamily loans for acquisitions, refinancing, or new developments.
The increase in workforce housing exemptions is another positive development. Properties with designated affordable housing units can access favorable financing terms through multifamily lenders. This presents an opportunity for investors and developers in NY to take advantage of apartment building loan options that support long-term affordability initiatives.
Steady Multifamily Performance in 2025
The multifamily market in NY has proven resilient despite economic fluctuations. In 2025, rent growth is expected to hover around 2.2%, slightly below the long-term average of 2.8%. Vacancy rates are projected to increase to 6.2%, largely due to the continued influx of new units. Despite these shifts, multifamily financing opportunities remain strong, particularly for well-located properties with stable tenant demand.
Apartment Lenders Anticipate Increased Loan Volume
After a slowdown in 2023 and 2024 due to high interest rates and market volatility, apartment lenders expect a rebound in financing activity. The multifamily origination market is forecasted to reach $370 billion to $380 billion in 2025. This surge is driven by a backlog of deals, necessary refinancing for maturing loans, and stabilizing property values.
New York investors looking to secure multifamily commercial real estate loans should take advantage of improving conditions. Whether acquiring, refinancing, or renovating properties, working with a trusted lender like Select Commercial ensures access to the best loan options in a dynamic market.
Investment Opportunities in NY’s Apartment Market
New policies, including congestion pricing and zoning reforms, are reshaping investment strategies in New York’s multifamily sector. Areas with strong job growth and transit accessibility, such as Brooklyn and Queens, are experiencing rising demand. Meanwhile, new rent regulations, such as the Good Cause Eviction law, are influencing pricing strategies for investors.
With rental demand remaining high and supply levels gradually normalizing by 2026, long-term investment in NY’s apartment sector remains an attractive opportunity. As lenders increase their apartment loan origination volume, borrowers have more options to secure favorable terms for their multifamily projects.
Secure Your Multifamily Loan with Select Commercial
For investors and property owners looking to navigate the evolving New York multifamily market, securing the right apartment building financing is essential. Select Commercial specializes in providing multifamily loans tailored to your investment goals. Whether you're purchasing a new property, refinancing an existing loan, or funding a redevelopment project, we can help you find the best financing solutions.
Contact Select Commercial today to explore your multifamily financing options and take advantage of 2025’s promising market conditions.
2025 NYC Multifamily Market Overview – Breakdown of the Five Boroughs
New York City’s multifamily real estate market remains one of the most competitive in the country. Each of the city’s five boroughs, including Manhattan, Brooklyn, Queens, The Bronx, and Staten Island, offers distinct opportunities for investors seeking New York multifamily loan options in 2025. Whether you're interested in high-end investment properties, workforce housing, or transit-oriented developments, understanding the dynamics of each borough is crucial when securing the right apartment building loan or multifamily financing.
This borough-by-borough breakdown will provide a detailed analysis of apartment loans, rental trends, financing options, and investment opportunities across NYC. Working with experienced multifamily lenders ensures access to the best financing solutions, whether you're looking to expand your portfolio in Manhattan, take advantage of Brooklyn’s growing rental market, or explore high-demand neighborhoods in Queens, The Bronx, or Staten Island.
2025 Brooklyn NY Multifamily Loan Overview
Brooklyn continues to be one of the strongest markets for New York multifamily loan opportunities in 2025. With high rental demand and increasing investor interest, securing the right apartment building loan or multifamily financing is key to capitalizing on this thriving borough. As interest rates fluctuate, experienced multifamily lenders are helping investors navigate the evolving lending landscape in NY.
What’s Going on with Brooklyn NY Multifamily Loan Rates in Early 2025?
The Federal Reserve’s recent rate cuts have created renewed interest in apartment building financing and multifamily loans across Brooklyn. In late 2024, the Federal Open Markets Committee cut the federal funds rate by 100 basis points, the first reduction since 2020. While short-term interest rates have dropped, long-term treasury rates, which impact most comercial mortgage rates, have remained volatile. The 10-year Treasury rate increased from 3.70% in September 2024 to over 4.50% by January 2025, prompting multifamily lenders to adjust their financing strategies. Investors looking for a multifamily commercial real estate loan in Brooklyn or across NY should stay informed on these financial trends.
Brooklyn NY Apartment Loans and Market Trends
As a leading destination for real estate investment, Brooklyn remains highly attractive for those seeking apartment loans and multifamily financing in NY. Investors interested in an apartment building loan are targeting Brooklyn’s rapidly developing areas, including Williamsburg, Downtown Brooklyn, and Park Slope. With rising rental demand and new developments underway, securing multifamily loans in NY is becoming a top priority for property owners and developers.
Apartment Rent Prices in Brooklyn
As of March 2025, the average monthly rent in Brooklyn is $3,215, well above the national average of $1,558. Investors securing apartment building financing are focusing on high-growth neighborhoods with strong rental returns. Current Brooklyn rent prices by apartment size are:
- Studio: $2,950
- One-bedroom: $3,250
- Two-bedroom: $4,125
- Three-bedroom: $5,200
Rising rent prices reinforce the need for strategic multifamily financing options. Working with experienced apartment lenders can help investors maximize returns while keeping loan costs competitive.
Brooklyn NY Multifamily Housing Supply and Demand
Brooklyn's rental demand continues to outpace new development, keeping vacancy rates low. Investors considering a multifamily commercial real estate loan in New York are focusing on areas with steady occupancy rates and strong long-term growth potential. While new apartment buildings are under construction, demand remains high, creating opportunities for those seeking multifamily loans to expand their portfolios.
To meet housing demand, developers are increasingly relying on apartment building financing. Working with the right multifamily lenders ensures access to the best financing options for acquisitions, refinancing, and new construction projects in Brooklyn.
Investment Opportunities for NY Multifamily Loans in Brooklyn
For investors seeking a Brooklyn NY multifamily loan, 2025 presents strong opportunities. The borough remains a top choice for those leveraging multifamily financing to generate steady rental income and long-term property appreciation. Whether purchasing a new property, refinancing, or funding renovations, securing the right multifamily loans is essential.
Brooklyn's diverse real estate market provides opportunities across different property types. Investors looking for apartment loans in new developments, workforce housing, or stabilized rental properties will find attractive financing solutions. With support from expert multifamily lenders, securing competitive loan terms is easier than ever.
Secure Your Brooklyn NY Multifamily Loan with Select Commercial
Investing in Brooklyn’s multifamily market requires the right New York multifamily loan solutions. Select Commercial specializes in providing apartment building financing and multifamily commercial real estate loans to help investors succeed.
With deep expertise in the Brooklyn and NY real estate markets, Select Commercial offers tailored financing options, whether you're looking for apartment loans, refinancing, or new construction funding. Contact Select Commercial today to explore your multifamily financing options and take advantage of Brooklyn’s thriving apartment market.
2025 The Bronx NY Multifamily Loan Overview
The Bronx remains one of the most dynamic markets for New York multifamily loan opportunities in 2025. With rising rental demand and strong investor interest, securing the right apartment building loan or multifamily financing is essential for those looking to capitalize on this growing borough. As market conditions shift, experienced multifamily lenders are helping investors navigate the evolving lending landscape in NY.
What’s Going on with The Bronx NY Multifamily Loan Rates in Early 2025?
The Federal Reserve’s recent rate cuts have influenced demand for apartment building financing and multifamily loans across The Bronx. In late 2024, the Federal Open Markets Committee reduced the federal funds rate by 100 basis points, marking the first cuts since 2020. While short-term interest rates have declined, long-term treasury rates, which impact most comercial mortgage rates, have remained volatile. The 10-year Treasury rate rose from 3.70% in September 2024 to over 4.50% by January 2025, prompting multifamily lenders to adjust their financing strategies. Investors looking for a multifamily commercial real estate loan in The Bronx or across NY should closely monitor these trends.
The Bronx NY Apartment Loans and Market Trends
As a key borough in New York City, The Bronx remains highly attractive for those seeking apartment loans and multifamily financing in NY. Investors considering an apartment building loan are focusing on areas with strong rental demand, such as Mott Haven, Kingsbridge, and Fordham. With continued population growth and ongoing infrastructure improvements, securing multifamily loans in The Bronx is a top priority for property owners and developers.
Apartment Rent Prices in The Bronx
As of March 2025, the average monthly rent in The Bronx is $1,627, reflecting a 4% increase over the national average of $1,558. Investors securing apartment building financing are targeting high-growth neighborhoods with strong rental demand. Current rent prices in The Bronx by apartment size are:
- Studio: $1,612
- One-bedroom: $1,623
- Two-bedroom: $2,081
- Three-bedroom: $2,376
With rent prices steadily rising, The Bronx presents an excellent opportunity for those looking to work with apartment lenders and secure strategic multifamily financing solutions.
The Bronx NY Multifamily Housing Supply and Demand
Despite new development, The Bronx continues to experience a low vacancy rate, currently hovering near 1%. This tight rental market makes it a prime location for investors seeking a multifamily commercial real estate loan in New York. With strong tenant demand and limited available inventory, developers are securing multifamily loans to build new rental properties and meet market needs.
As more projects break ground, securing apartment building financing remains crucial for investors looking to expand their portfolios. Partnering with experienced multifamily lenders ensures access to the best loan options for acquisitions, refinancing, and new construction.
Investment Opportunities for NY Multifamily Loans in The Bronx
For investors seeking a The Bronx NY multifamily loan, 2025 presents strong investment opportunities. The borough remains a top choice for those leveraging multifamily financing to generate long-term rental income and property appreciation. Whether purchasing a new apartment building, refinancing an existing property, or funding renovations, securing the right multifamily loans is key to maximizing returns.
The Bronx’s diverse real estate market provides opportunities across various asset classes. Investors looking for apartment loans in newly developed properties, workforce housing, or stabilized rental buildings will find financing solutions that fit their investment strategy. With support from expert multifamily lenders, securing competitive loan terms has never been easier.
Secure Your The Bronx NY Multifamily Loan with Select Commercial
Investing in The Bronx’s multifamily market requires the right New York multifamily loan solutions. Select Commercial specializes in providing apartment building financing and multifamily commercial real estate loans to help investors achieve success.
With deep expertise in The Bronx and NY real estate markets, Select Commercial offers tailored financing options for apartment loans, refinancing, and new construction funding. Contact Select Commercial today to explore your multifamily financing options and take advantage of The Bronx’s thriving rental market.
2025 Manhattan NY Multifamily Loan Overview
Manhattan remains one of the most sought-after markets for New York multifamily loan opportunities in 2025. With strong rental demand, high property values, and continued investor interest, securing the right apartment building loan or multifamily financing is essential for those looking to capitalize on this competitive borough. As the market evolves, experienced multifamily lenders are providing strategic financing solutions to help investors navigate Manhattan’s unique lending environment in NY.
What’s Going on with Manhattan NY Multifamily Loan Rates in Early 2025?
The Federal Reserve’s recent rate cuts have influenced the demand for apartment building financing and multifamily loans across Manhattan. In late 2024, the Federal Open Markets Committee reduced the federal funds rate by 100 basis points, marking the first cuts since 2020. While short-term interest rates have decreased, long-term treasury rates, which impact most comercial mortgage rates, remain volatile. The 10-year Treasury rate increased from 3.70% in September 2024 to over 4.50% by January 2025, prompting multifamily lenders to adjust their financing strategies. Investors seeking a multifamily commercial real estate loan in Manhattan or across NY should stay updated on these economic shifts.
Manhattan NY Apartment Loans and Market Trends
As the financial capital of the world, Manhattan remains one of the most competitive real estate markets for those seeking apartment loans and multifamily financing in NY. Investors considering an apartment building loan are focusing on high-demand neighborhoods such as the Upper East Side, Midtown, and the Financial District. With high rental demand and premium property values, securing multifamily loans in Manhattan is crucial for long-term investment success.
Apartment Rent Prices in Manhattan
As of March 2025, the average monthly rent in Manhattan is $4,975, reflecting its status as the most expensive rental market in New York. Investors securing apartment building financing are focusing on high-end properties and stabilized rental units. Current Manhattan rent prices by apartment size are:
- Studio: $3,900
- One-bedroom: $4,750
- Two-bedroom: $6,350
- Three-bedroom: $8,200
With consistently high rental prices, Manhattan continues to attract investors working with apartment lenders to secure strategic multifamily financing solutions.
Manhattan NY Multifamily Housing Supply and Demand
Despite new luxury developments, Manhattan’s rental demand remains high, with vacancy rates staying below 3%. Investors looking for a multifamily commercial real estate loan in New York are focusing on Class A properties, rent-stabilized buildings, and mixed-use developments. While new high-rise apartments continue to be built, demand for well-located rental properties remains strong, reinforcing the need for multifamily loans in Manhattan.
To meet this demand, developers and investors are aggressively seeking apartment building financing to expand their rental portfolios. Partnering with experienced multifamily lenders ensures access to the best financing options for acquisitions, refinancing, and new construction projects in Manhattan.
Investment Opportunities for NY Multifamily Loans in Manhattan
For investors seeking a Manhattan NY multifamily loan, 2025 presents prime investment opportunities. The borough remains a top choice for those leveraging multifamily financing to secure high-value rental properties and long-term appreciation. Whether purchasing a new high-rise, refinancing a historic brownstone, or funding renovations, securing the right multifamily loans is essential.
Manhattan’s real estate market provides investment opportunities across different asset classes. Investors looking for apartment loans in ultra-luxury developments, mixed-use buildings, or stabilized rental properties will find customized financing solutions. With the support of expert multifamily lenders, securing competitive loan terms is crucial for maximizing investment potential.
Secure Your Manhattan NY Multifamily Loan with Select Commercial
Investing in Manhattan’s multifamily market requires the right New York multifamily loan solutions. Select Commercial specializes in providing apartment building financing and multifamily commercial real estate loans tailored to investors’ needs.
With extensive experience in the Manhattan and NY real estate markets, Select Commercial offers customized financing solutions for apartment loans, refinancing, and new construction. Contact Select Commercial today to explore your multifamily financing options and take advantage of Manhattan’s premier real estate market.
2025 Queens NY Multifamily Loan Overview
Queens continues to be one of the most promising markets for New York multifamily loan opportunities in 2025. With increasing rental demand and a diverse real estate landscape, securing the right apartment building loan or multifamily financing is key for investors looking to capitalize on this borough’s growth. As the market evolves, experienced multifamily lenders are providing strategic financing solutions to help investors navigate the lending environment in NY.
What’s Going on with Queens NY Multifamily Loan Rates in Early 2025?
The Federal Reserve’s recent rate cuts have influenced the demand for apartment building financing and multifamily loans across Queens. In late 2024, the Federal Open Markets Committee reduced the federal funds rate by 100 basis points, marking the first cuts since 2020. While short-term interest rates have decreased, long-term treasury rates, which impact most comercial mortgage rates, remain volatile. The 10-year Treasury rate increased from 3.70% in September 2024 to over 4.50% by January 2025, prompting multifamily lenders to adjust their financing strategies. Investors seeking a multifamily commercial real estate loan in Queens or across NY should closely monitor these economic trends.
Queens NY Apartment Loans and Market Trends
As a key investment hub in New York City, Queens remains a strong market for those seeking apartment loans and multifamily financing in NY. Investors considering an apartment building loan are focusing on high-demand neighborhoods such as Long Island City, Astoria, and Flushing. With continued development and infrastructure improvements, securing multifamily loans in Queens is a strategic move for property owners and developers.
Apartment Rent Prices in Queens
As of March 2025, the average monthly rent in Queens is $2,950, positioning it between Manhattan’s luxury pricing and Brooklyn’s growing market. Investors securing apartment building financing are targeting areas with strong rental growth. Current Queens rent prices by apartment size are:
- Studio: $2,475
- One-bedroom: $2,850
- Two-bedroom: $3,650
- Three-bedroom: $4,500
With rental prices continuing to climb, Queens presents an excellent opportunity for investors working with apartment lenders to secure competitive multifamily financing solutions.
Queens NY Multifamily Housing Supply and Demand
Queens continues to experience a strong demand for rental housing, with vacancy rates remaining low. Investors seeking a multifamily commercial real estate loan in New York are focusing on well-positioned properties with high occupancy rates. With new developments underway and an influx of renters moving to the borough, competition remains strong for those securing multifamily loans in Queens.
To meet this demand, developers are actively pursuing apartment building financing to expand their rental portfolios. Partnering with experienced multifamily lenders is essential for securing the best financing terms for acquisitions, refinancing, and new construction projects.
Investment Opportunities for NY Multifamily Loans in Queens
For investors seeking a Queens NY multifamily loan, 2025 presents strong investment opportunities. The borough remains a prime destination for those leveraging multifamily financing to generate steady rental income and long-term property appreciation. Whether purchasing a new apartment building, refinancing an existing property, or funding renovations, securing the right multifamily loans is crucial.
Queens' diverse real estate market provides opportunities across different asset types. Investors looking for apartment loans in new developments, transit-oriented properties, or stabilized multifamily buildings will find financing solutions to fit their needs. With support from expert multifamily lenders, securing competitive loan terms has never been easier.
Secure Your Queens NY Multifamily Loan with Select Commercial
Investing in Queens’ multifamily market requires the right New York multifamily loan solutions. Select Commercial specializes in providing apartment building financing and multifamily commercial real estate loans tailored to the needs of investors.
With extensive experience in the Queens and NY real estate markets, Select Commercial offers customized financing solutions for apartment loans, refinancing, and new construction. Contact Select Commercial today to explore your multifamily financing options and take advantage of the opportunities in Queens’ thriving rental market.
2025 Staten Island NY Multifamily Loan Overview
Staten Island offers unique opportunities for investors seeking New York multifamily loan options in 2025. Unlike the high-density urban cores of Manhattan and Brooklyn, Staten Island provides a more suburban feel with lower population density and a mix of multifamily properties, townhomes, and rental developments. For investors looking for apartment building loan options in a growing market, Staten Island presents an attractive alternative with steady demand and expanding infrastructure.
What’s Going on with Staten Island NY Multifamily Loan Rates in Early 2025?
The Federal Reserve’s rate cuts in late 2024 have influenced apartment building financing and multifamily loans across Staten Island. After multiple federal funds rate reductions, short-term interest rates have declined, yet long-term treasury rates, which impact most comercial mortgage rates, have remained volatile. The 10-year Treasury rate rose from 3.70% in September 2024 to over 4.50% by January 2025, causing multifamily lenders to reassess financing structures. Investors seeking a multifamily commercial real estate loan in Staten Island or across NY should carefully analyze market conditions.
Staten Island NY Apartment Loans and Market Trends
Compared to other NYC boroughs, Staten Island offers a more suburban-style rental market with a mix of small multifamily properties and larger apartment complexes. Investors considering an apartment building loan are targeting areas such as St. George, Tottenville, and Huguenot, where rental demand continues to rise. With a growing commuter population and improved ferry access to Manhattan, multifamily financing in Staten Island is becoming increasingly attractive for long-term investors.
Apartment Rent Prices in Staten Island
As of March 2025, the average monthly rent in Staten Island is $2,275, making it the most affordable borough for renters in NYC. Investors securing apartment building financing are targeting stable rental properties with long-term appreciation potential. Current Staten Island rent prices by apartment size are:
- Studio: $1,950
- One-bedroom: $2,150
- Two-bedroom: $2,650
- Three-bedroom: $3,200
With steady rental prices and a growing demand for more affordable housing options, Staten Island remains a prime location for investors working with apartment lenders to secure competitive multifamily financing solutions.
Staten Island NY Multifamily Housing Supply and Demand
While Staten Island has traditionally had lower population density than the other NYC boroughs, recent development efforts have led to an increase in multifamily construction. Investors seeking a multifamily commercial real estate loan in New York are focusing on properties near public transportation, ferry terminals, and growing commercial centers. With increasing demand and relatively low competition, securing multifamily loans in Staten Island can be a strategic move.
To take advantage of these opportunities, developers and investors are actively securing apartment building financing to expand their portfolios. Working with experienced multifamily lenders ensures access to the best financing solutions for acquisitions, refinancing, and new construction in Staten Island.
Investment Opportunities for NY Multifamily Loans in Staten Island
For investors seeking a Staten Island NY multifamily loan, 2025 presents strong investment opportunities. Staten Island remains a top destination for those leveraging multifamily financing to acquire rental properties with lower entry costs compared to other NYC boroughs. Whether purchasing a new development, refinancing an existing property, or funding renovations, securing the right multifamily loans is essential.
Staten Island’s real estate market provides investment opportunities across different asset types. Investors looking for apartment loans in small multifamily buildings, mid-rise developments, or mixed-use properties will find financing solutions that align with their goals. With the support of expert multifamily lenders, securing competitive loan terms is key to maximizing returns.
Secure Your Staten Island NY Multifamily Loan with Select Commercial
Investing in Staten Island’s multifamily market requires the right New York multifamily loan solutions. Select Commercial specializes in providing apartment building financing and multifamily commercial real estate loans tailored to investors’ needs.
With extensive experience in the Staten Island and NY real estate markets, Select Commercial offers customized financing solutions for apartment loans, refinancing, and new construction. Contact Select Commercial today to explore your multifamily financing options and take advantage of Staten Island’s growing investment market.
What’s going on with New York multifamily loan rates in early 2025?
The Federal Reserve’s Federal Open Markets Committee cut the federal funds rate by 50 basis points at its September 2024, meeting and another 25 basis points each at its November and December 2024 meetings. These were the first rate cuts since March 2020, when the Fed began a long series of rate hikes to curb the high rate of inflation. The Fed’s decisions show that they believe that inflation is under control and moving into the 2% range that the Fed has set as its goal. The Federal Reserve took these actions to prevent further declines in the labor market. In early 2025, the Fed hinted that the pace of further rate cuts would slow in 2025 and hinted that there might be two further cuts this year. These rate cuts, along with potential 2025 rate cuts, may create positive investor demand for multifamily real estate, and may provide aid for multifamily loan customers, as well as consumers in general. We must caution, however, that the Federal Reserve cuts affect short term interest rates directly and long-term rates only indirectly. The Prime Rate, which is a short-term rate, dropped from 8.50% to 7.50% with the Fed’s 2024 actions. However, most comercial mortgage rates are based on the 5-, 7-, or 10-year treasury rates, and not the Prime Rate. We have seen these long-term treasury rates actually rise since the Fed cut short term rates! On September 18th, the 10-year treasury was roughly 3.70%. By the end of January 2025 this rate had jumped to over 4.50%. Investors are still concerned about future inflation and are adopting a wait and see attitude. As of March 29, 2025, the 5 year Treasury is at 3.980% and the 10 year Treasury is at 4.251%.
Everything You Need to Know About New York Multifamily Loans in 2025
In order to determine New York multifamily loan rates, the first thing a multifamily loan lender needs to know is the type of property involved. Pricing on apartment loans will be lower than pricing for office properties, as apartments are a preferred investment in today’s market. After the lender understands the asset class involved, he will look at the deal metrics, which include, Loan to Value ratio (LTV), Debt Service Coverage Ratio (DSCR), and Debt Yield. Loans with a lower LTV and higher DSCR are considered less risky and will have better pricing. Another important deciding factor will be the location of the property. Top quality urban and suburban markets will be preferred over rural locations. One other major deciding factor will be the borrower’s experience, credit, net worth and liquidity. Strong borrowers with experience can expect the best pricing. The bottom line is that lenders need to understand the entire picture before quoting rates. As of March 29, 2025, you can check where multifamily loan rates currently start.
New York multifamily loan rates fluctuate based on current market indices. Most multifamily loans are priced over one of the following: US Treasury rate, the Wall Street Journal prime rate, or the Secured Overnight Financing Rate (SOFR). At the beginning of 2025, all of these rates are still elevated as a result of the Federal Reserve’s rate increases to curb inflation. As market rates gradually soften, multifamily loan rates will trend downwards. Many borrowers today are not locking in long term fixed rates but are opting for short term deals with lower prepayment penalties so that they can refinance when rates are more favorable.
It used to be fairly common to obtain 80% financing when rates were in the 3% and 4% range as the property’s cash flow could support higher levels of debt. In early 2025, with many rates in the 6% and 7% range, cash flow is severely restricted due to higher debt service costs. We often see maximum loan to value ratios in the 65% -70% range today as a result of these higher rates. As market rates ease, we would expect to see higher loan to value ratios and lower down payment requirements.
Many borrowers who are looking to refinance loans taken out five to ten years ago are experiencing several obstacles. First, since rates in early 2025 are higher, many loans are coming up cash-short (the new loan amount is not enough to pay off the maturing loan). These borrowers are often required to inject more cash into their deals or take on equity partners who are willing to invest. Today’s higher rates are causing mortgage payments which are often rising faster than the rental income increases will bear. Until rates ease, many borrowers will have experience difficulty refinancing their existing loans.
There are many reasons to work with a qualified and experienced New York multifamily loan broker. A mortgage broker will have a large database of capital sources, including agency lenders, insurance companies, CMBS lenders, national, regional and local banks, credit unions, debt funds, and private lenders to choose from. The broker will analyze your specific deal and determine which capital source will offer the best terms and the highest likelihood of success. The broker will professionally package your deal and negotiate the best terms for you.
Select Commercial has over 40 years of experience negotiating commercial and apartment loans for its clients. They have an extensive nationwide network of capital sources that are able to consider most loan scenarios. Many borrowers go to one or two of their local banks but don’t have the nationwide reach to approach other lenders that are often offering better rates and terms. Select Commercial spends the time understanding every client’s needs and will aim to negotiate all important loan terms, including, rate, term, amortization, prepayment penalty, recourse obligations, fees, reporting requirements, etc.
Lenders look at many items when deciding whether to approve an apartment or not. Some of the most important factors include LTV ratio, DSCR ratio, location of the property, property condition, occupancy, and borrower qualifications (experience, credit, net worth, and cash liquidity). While most of these factors are common sense and assumed by borrowers, the DSCR ratio might need some explanation. DSCR stands for Debt Service Coverage Ratio and is a ratio of the total net operating income divided by the annual debt service. Most lenders will require a DSCR of at least 1.25. This means that for every dollar of mortgage payment the property must net $1.25 in NOI. The reason that this is important is that while the maximum LTV might be 80%, the property needs to meet the debt service requirements. Due to higher market rates in 2025, most properties will only cash flow at 65% or 70%. It is important to calculate both LTV and DSCR when looking for a new loan.
New York lenders look for quality properties with high historical occupancy in excellent neighborhoods. Certain asset classes are preferred today based on current market conditions. Apartment properties and investment grade retail/warehouse/industrial properties with long leases are always in high demand. The risk of default with these properties is very low. Riskier deals include properties with short term leases, properties with high vacancy rates, and properties in remote or rural locations. Certain asset classes are not in favor today, such as general office properties. Ever since the work from home policies enacted during the Covid pandemic (many of which still remain in place) office properties have lagged the market.
Most new loans today will have rates that are higher than the rates which borrowers obtained 5 – 10 years ago. As these loans come up for renewal, many borrowers will be forced to refinance at today’s higher rates. Those borrowers might find that the new loan does not cash flow as well as their previous loan and might need to pay down the loan. Some borrowers who opt to refinance now might be looking to free up cash for other investments. Borrowers will need to decide if that makes sense in today’s market. We are not seeing a lot of discretionary refinancing right now due to higher market rates. Once rates soften, we expect to see a significant increase in discretionary refinancing.
Applying for a New York HUD multifamily loan is no different than applying for a regular loan with your bank. The lender will want to see a current rent roll showing at least 90% occupancy, a 12-month operating history showing the necessary cash flow to support the new loan, sufficient multifamily experience, good net worth and cash liquidity, and a good credit rating. Loans that do not meet HUD, Fannie Mae or Freddie Mac standards might still qualify for a bank or credit union loan. The lender will tell you upfront which lending options are best for you.
Applying for a New York Freddie Mac multifamily loan is no different than applying for a regular loan with your bank. The lender will want to see a current rent roll showing at least 90% occupancy, a 12-month operating history showing the necessary cash flow to support the new loan, sufficient multifamily experience, good net worth and cash liquidity, and a good credit rating. Loans that do not meet HUD, Fannie Mae or Freddie Mac standards might still qualify for a bank or credit union loan. The lender will tell you upfront which lending options are best for you.
Applying for a New York Fannie Mae multifamily loan is no different than applying for a regular loan with your bank. The lender will want to see a current rent roll showing at least 90% occupancy, a 12-month operating history showing the necessary cash flow to support the new loan, sufficient multifamily experience, good net worth and cash liquidity, and a good credit rating. Loans that do not meet HUD, Fannie Mae or Freddie Mac standards might still qualify for a bank or credit union loan. The lender will tell you upfront which lending options are best for you.
Most multifamily loan loans today are fixed for 5, 7, or 10 years and come with a 25–30 year amortization schedule. Loans can be recourse (personal guarantee) or non-recourse (no personal guarantee). multifamily loan loans typically carry prepayment penalties, whereas residential home loans usually do not. Specific terms will be determined by your lender’s underwriting team after your application is reviewed.
New York multifamily loan lenders typically lend up to 75–80% on an apartment purchase (down payment of 20–25% necessary). On other types of commercial property, multifamily loan lenders will typically lend up to 70–75% (down payment of 25–30% necessary). An exception is for owner-occupied business real estate, where owner/users may qualify for up to 90% LTV financing.
New York multifamily loan loans are evaluated differently from residential loans. Residential lenders base their decisions on the borrower’s income and creditworthiness, while commercial lenders focus on the property’s cash flow, operating statements, rent roll, and other financial metrics. Riskier commercial properties often lead to higher rates, while strong-performing properties can result in rates lower than residential loans.
The best commercial properties to invest in 2025 are those with high historical occupancy in strong locations. Apartment properties and investment-grade retail, warehouse, and industrial properties with long leases are preferred due to their low risk. Riskier properties include those with short-term leases, high vacancy rates, or located in rural areas. General office properties remain less desirable due to work-from-home trends.
Refinancing a multifamily loan involves determining whether the new loan meets your goals, such as lowering rates, reducing payments, or freeing up cash. Higher rates in 2025 can make refinancing challenging, with some borrowers needing to inject cash into deals. Once rates soften, refinancing may become more favorable for many property owners.
To apply for a multifamily loan, you’ll need to provide financial documentation, including a rent roll, operating statements, and borrower financials (net worth, liquidity, credit score). The lender evaluates both the property’s and borrower’s profiles to determine loan eligibility and pricing. A qualified mortgage broker can help streamline the process and identify the best options for you.
Your Trusted New York Lender Source for Large Multifamily Properties Over $10 Million
Select Commercial Funding LLC specializes in providing exceptional mortgage brokerage services for large multifamily properties and high-value apartment complexes in New York. As a top commercial mortgage broker, our expertise extends to multifamily real estate financing, ensuring that investors receive the best terms and rates for their substantial investments. With our deep industry knowledge and commitment to excellence, we facilitate seamless financing for large balance multifamily properties, including loans for $10 million and up. Through our correspondent relationships with Freddie Mac, Fannie Mae, HUD, CMBS, life companies, and other multifamily real estate lenders, we can secure lower rates and higher leverage for our clients. Unlike banks and credit unions, we collaborate with a wide range of lenders to find the one best aligned with your unique scenario, ensuring you receive the most favorable rates and terms. We finance large balance multifamily loans nationwide across all asset classes. Our team’s extensive experience with large multifamily loans helps ensure that loans are funded quickly and at the lowest possible rates. We are dedicated to being the best multifamily mortgage brokers for large properties, providing expert services for high-value apartment complexes.
Tailored Solutions for High-Value New York Multifamily Real Estate Financing
At Select Commercial, we understand the unique challenges and opportunities involved in high-value multifamily real estate financing. Our customized loan programs are designed to meet the specific needs of large-scale and institutional investors, offering competitive rates and flexible terms on multifamily properties nationwide. With LTV’s up to 80% and low market rates, we provide our clients with some of the best financing terms available. Whether you are seeking financing for luxury New York apartment complex mortgages or large balance multifamily loans over $10 million, our team provides the strategic support you need to achieve your investment goals. Recognized as top multifamily mortgage brokers for high-value properties, we ensure you receive tailored solutions for prime multifamily properties. By leveraging our strong relationships with a variety of lending institutions, we secure some of the lowest rate multifamily and apartment loans for our clients, making us your go-to partner for large balance multifamily financing.
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.
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.
Apartment Loan Types We Serve
If you are looking to purchase or refinance a NYC apartment building, don't hesitate to contact us. We arrange financing in the city of NYC 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
Apartment Loan Helpful Articles
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How To Get The Best Rates On An Apartment Refinance
How do we help our New York apartment loan clients get the best rate and terms?
Select Commercial has excellent New York apartment building loan products and options available for owners and purchasers of apartment properties throughout the state of New York. Whether you are looking for a small apartment building loan or are looking for apartment building financing for a complex with hundreds of units, we can help you find the optimal apartment building financing to meet your apartment building 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 York is one of the states that we consider to be a premium market for apartment building loans 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 NY 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.
Recent Multifamily Loan Closings
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 $1,500,000. Get started with a Free Commercial Mortgage Loan Quote.