North Carolina Apartment Loans

$1,000,000 Minimum

North Carolina Apartment Loan Rates - Rates updated October 20th, 2021

North Carolina Apartment Loan Programs Over $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 2.59% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 2.70% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 2.91% Up to 80% Get Free Quote
North Carolina Apartment Loan Programs Under $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 3.23% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 3.24% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 3.26% Up to 80% Get Free Quote
North Carolina Apartment Building North Carolina
Apartment Building

Select Commercial has excellent apartment building loan and multifamily loan products and options available for owners and purchasers of multi-family and apartment properties throughout the state of North Carolina. 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. North Carolina 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 NC 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.

North Carolina Apartment Loan Benefits

North Carolina Apartment Loan rates start as low as 2.59% (as of October 20th, 2021)
• No upfront application or processing fees 
• Simplified application process 
• Up to 80% LTV on apartment financing 
• Terms and amortizations up to 30 years 
• 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!"


North Carolina Apartment Loan Types We Serve

If you are looking to purchase or refinance a North Carolina apartment building, don't hesitate to contact us. We arrange financing in the state of North Carolina for the following:

  • Large urban high-rise apartment buildings
  • Suburban garden apartment complexes
  • Small apartment buildings containing 5+ units
  • Underlying cooperative apartment building loans
  • Portfolios of small apartment properties and/or single-family rental properties
  • Other multi-family and mixed-use properties

Recent Closings

2021 Multifamily Outlook

  • Employment in the US is expected to show a 4.6% year over year increase with the creation of 6.5 million new jobs in 2021 which represents the largest annual increase in over three decades.  This is the result of businesses emerging from the Covid-19 pandemic.  Unfortunately, the US lost close to 9.4 million jobs during the pandemic.
  • Strong demand for apartments, as a result of increased employment rates, is expected to push national vacancy rates down to 3.9%, down from 4.4% in 2021.
  • Construction of new apartments in 2021 are expected to top 385,000 new units, an increase of 2.1% over last year’s record pace.  Rising labor and construction costs are starting to have an effect on new construction, however.
  • Following rent declines during the pandemic, average rental rates are expected to rise 6.8% in 2021 to $1,507 per month.  Landlords are able to raise rents dramatically due to decreased vacancy rates and the strong demand got rental housing.
  • 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.

    North Carolina Multifamily Loan Information and Economic Overview

    Raleigh Economic Trends Raleigh Economic Trends

    Investors looking for a good place to put their money would benefit by looking into commercial mortgage financing in North Carolina. Here are some quick facts about commercial real estate in the state:

    • There are nearly 1.8 million investment properties in North Carolina.
    • Vacant land is the largest property type in North Carolina with more than 1 million of the state's parcels creating much potential for developers looking for commercial mortgage loans.
    • There are only about 82,000 multifamily buildings in North Carolina.
    • About 219,000 of the investment properties in North Carolina are situated in Qualified Opportunity Zones.

    The average value of commercial real estate properties in North Carolina is roughly $290,000 while the median sales price of these properties is about $177,000. In the last two years there have been close to 151,000 sales; with 57,560 sales greater than $250,000, about 10,400 properties sold for over $1,000,000, and around 1,300 appraised at over $10,000,000. The average price per square foot of commercial properties in North Carolina over the last two years is $112 while the average lot size of these properties is 41,694 square feet, 52% above the United States average. There are close to 1.8 million commercial real estate properties in the state, 187% below country’s average, with a total acreage of about is 15 million acres. In terms of commercial mortgages, there are about 819,000 mortgages for commercial properties throughout North Carolina. The average value of these commercial mortgages is roughly $4.9 million, 6% below the United States average. This data demonstrates that North Carolina is a wonderful place for investors to pursue commercial mortgage loans.

    The office space market is thriving in the Raleigh-Durham area. This metro’s population is relatively younger than the national average at 36.4 versus 38.5 years of age. Additionally, The Raleigh Metro has been rated as a top 5 metro for STEM leadership. Moreover, The Research Triangle region has more than 192,000 students enrolled in higher education and over 44,000 graduates entering the workforce each year. Both the quantity and quality of Raleigh-Durham’s developing workforce have caused the metro to gain attention on the national stage, leading to an infusion of capital into and huge economic expansion in the metro area. This boom has led to an increase in demand for much more office space in the region. As demand for office space has increased, investor interest in this sector in has followed suit. This has a led to a higher volume of office space sales in 2019 than there were in 2018. Investors looking to purchase office space in the region should definitely look into receiving commercial mortgage financing to assist with a purchase.

    In terms of the multifamily sector, Raleigh-Durham is thriving with no signs of slowing down and is the perfect place for investors to procure apartment loans in North Carolina. Just like its impact on the office space market, the impressive talent pool coming from the top universities in the region continues to ignite the economy, leading developers to construct new apartment buildings. Increases in higher salary positions have attracted young professionals to the area leading to a heavy demand for both residential and commercial real estate to accommodate this growing workforce. For example, a 300-unit multifamily building including a ground-floor retail space has recently been developed in the area. As of June 2019, the Raleigh-Durham area had 9,257 multifamily and apartment units under construction, with 5,800 of them scheduled to be delivered this year. Despite the addition of more than 26,000 multifamily and apartment units during the past five years, rent growth has not been negatively impacted as rents are expected to rise 4% in the 2019 calendar year. Thus, there is no better time for eager commercial real estate investors to receive apartment loans to help break into this thriving multifamily market.

    2020 Raleigh Apartment Market Forecast

    Raleigh Completions vs. Absorption Raleigh Completions vs. Absorption

    The Raleigh National Multifamily Index Rank is at 14, up 6 places. Strengthening price appreciation and steady employment growth push Raleigh up in the 2020 Index.

    Employment in Raleigh is up 1.9%. After a gain of 2.4 percent last year, employers will add 18,000 jobs in 2020 and many will be higher-paying tech positions.

    Construction in Raleigh is expected to exceed 5,900 apartment units. During 2020, deliveries remain on par with last year’s 5,500 apartments. The city of Raleigh will receive more than 3,100 of this year’s new inventory.

    Vacancy in Raleigh is down 10 bps. The steady delivery pace and growing rental demand will trim the vacancy rate to 4.3 percent in 2020, the lowest year-end rate since 2000. Last year, vacancy decreased 80 basis points.

    Rent in Raleigh is up 4.5%. Lower vacancy will push the average effective rent to $1,219 per month this year, down from a 5.6 percent leap in 2019.

    Investment opportunities in Raleigh remain strong for those looking to finance their next purchase with an apartment loan Both local and out-of-state investors are targeting Class B/C properties in Raleigh. Assets along the corridor extending from downtown to North Carolina State University are sought. We highly recommend any investors looking to buy in the Raleigh market to reach out to us regarding a multifamily loan.

    Data provided by Marcus & Millichap.

    Raleigh Vacancy and Rents Raleigh Vacancy and Rents

    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.

    North Carolina Apartment Loan Options

    Our company has multiple capital sources for these apartment loans, including: Fannie Mae, Freddie Mac, FHA, national banks, regional and local banks, insurance companies, Wall Street conduit lenders, credit unions and private lenders.


    Fannie Mae Loan and Rate Information


    Fannie Mae’s multifamily loan platform is one the leading sources of capital for 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).

    Freddie Mac Loan and Rate Information

    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 market. Freddie Mac has a very aggressive program for small balance 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.

    North Carolina Apartment Lending with Banks and Other Programs

    While the agencies (Fannie Mae and Freddie Mac) 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:

    • 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 loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.

    North Carolina Multifamily Loan Information and Economic Overview

    Investors looking for a good place to put their money would benefit by looking into commercial mortgage financing in North Carolina. Here are some quick facts about commercial real estate in the state:

    • There are nearly 1.8 million investment properties in North Carolina.
    • Vacant land is the largest property type in North Carolina with more than 1 million of the state's parcels creating much potential for developers looking for commercial mortgage loans.
    • There are only about 82,000 multifamily buildings in North Carolina.
    • About 219,000 of the investment properties in North Carolina are situated in Qualified Opportunity Zones.

    The average value of commercial real estate properties in North Carolina is roughly $290,000 while the median sales price of these properties is about $177,000. In the last two years there have been close to 151,000 sales; with 57,560 sales greater than $250,000, about 10,400 properties sold for over $1,000,000, and around 1,300 appraised at over $10,000,000. The average price per square foot of commercial properties in North Carolina over the last two years is $112 while the average lot size of these properties is 41,694 square feet, 52% above the United States average. There are close to 1.8 million commercial real estate properties in the state, 187% below country’s average, with a total acreage of about is 15 million acres. In terms of commercial mortgages, there are about 819,000 mortgages for commercial properties throughout North Carolina. The average value of these commercial mortgages is roughly $4.9 million, 6% below the United States average. This data demonstrates that North Carolina is a wonderful place for investors to pursue commercial mortgage loans.

    The office space market is thriving in the Raleigh-Durham area. This metro’s population is relatively younger than the national average at 36.4 versus 38.5 years of age. Additionally, The Raleigh Metro has been rated as a top 5 metro for STEM leadership. Moreover, The Research Triangle region has more than 192,000 students enrolled in higher education and over 44,000 graduates entering the workforce each year. Both the quantity and quality of Raleigh-Durham’s developing workforce have caused the metro to gain attention on the national stage, leading to an infusion of capital into and huge economic expansion in the metro area. This boom has led to an increase in demand for much more office space in the region. As demand for office space has increased, investor interest in this sector in has followed suit. This has a led to a higher volume of office space sales in 2019 than there were in 2018. Investors looking to purchase office space in the region should definitely look into receiving commercial mortgage financing to assist with a purchase.

    In terms of the multifamily sector, Raleigh-Durham is thriving with no signs of slowing down and is the perfect place for investors to procure apartment loans in North Carolina. Just like its impact on the office space market, the impressive talent pool coming from the top universities in the region continues to ignite the economy, leading developers to construct new apartment buildings. Increases in higher salary positions have attracted young professionals to the area leading to a heavy demand for both residential and commercial real estate to accommodate this growing workforce. For example, a 300-unit multifamily building including a ground-floor retail space has recently been developed in the area. As of June 2019, the Raleigh-Durham area had 9,257 multifamily and apartment units under construction, with 5,800 of them scheduled to be delivered this year. Despite the addition of more than 26,000 multifamily and apartment units during the past five years, rent growth has not been negatively impacted as rents are expected to rise 4% in the 2019 calendar year. Thus, there is no better time for eager commercial real estate investors to receive apartment loans to help break into this thriving multifamily market.

    North Carolina Apartment Loans

    Select Commercial provides apartment loans and commercial mortgages throughout the state of North Carolina including but not limited to the areas below.


    CharlotteFayettevilleRaleighCary • West Raleigh • Greensboro • Winston-SalemDurham