North Carolina Apartment Loans and Multifamily Financing $1,000,000+

North Carolina Apartment Loan Rates - Rates updated February 17th, 2020

Multifamily Loan Product Rates (start as low as) LTV Amortization
5 Year Fixed 3.52% Up to 80% Up to 30 years
7 Year Fixed 3.68% Up to 80% Up to 30 years
10 Year Fixed 3.84% Up to 80% Up to 30 years
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 3.52% (as of February 17th, 2020)
• 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

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

Multifamily Loan Outlook - 2020

Across the country, experts predict that the multifamily market should continue with its strong performance into 2020. There are several crucial factors that support this favorable prediction, a few of which are delineated below. While there are also a variety of political and financial conditions present that combine to add a level of uncertainty to the market, the positives are anticipated to outweigh the negatives for investors in the multifamily sector in 2020. Firstly, healthy and viable labor markets are expected to continue to drive the demand for multifamily housing. Continued growth in employment rates is expected to fuel new multifamily household creation. In 2019, employers were on pace to create over 2 million net new jobs, making it the ninth straight year where employment growth came in at or above 2 million jobs. Secondly, apartment rents have been rising incredibly fast over the past several years. Late in 2019, California passed rent control legislation. However, as the law allows for annual rent increases of about five percent, rent is still expected to increase significantly. Some of the realities driving rents higher in top markets include increases demand for multifamily housing, rising land and construction costs and an influx of higher-end, luxury projects coming to the market. With these conditions in place, landlords are going to find themselves making more in rental income in 2020.

Experts further predict that buying and developing in the suburbs will remain the best bet for multifamily investors in 2020. They expect suburban multifamily growth to outperform urban as it maintains lower vacancy rates and achieves higher rent growth. According to CBRE Research, the top four markets for multifamily performance in the coming year are Phoenix, Atlanta, Austin and Boston. These four metros are very high-growth cities when considering metrics such as multifamily demand, population and employment. Additionally, construction and development are very active in these markets. Smaller metros and cities should also maintain prominence in the considerations of investors and developers. While the risk of overbuilding may be higher in smaller markets, there are several markets that appear to be primed for exceptional multifamily performance. Many smaller metros are undergoing a significant development of their urban centers, thereby improving quality of life and helping them to retain their employment base. Of these smaller markets, seven metros had 4% or higher rent growth as of the third quarter of 2019 and are incredibly likely candidates for outperformance in 2020: Albuquerque, Birmingham, Colorado Springs, Dayton, Greensboro, Memphis, and Tucson.

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.

North Carolina Apartment Financing with Fannie Mae (FNMA)

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 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).

North Carolina Apartment Mortgages with Freddie Mac (FHLMC)

Freddie Mac is another government agency that provides 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. Click here to get started with a free 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 multifamily loans throughout the state of North Carolina including but not limited to the areas below.

CharlotteFayettevilleRaleigh • Cary • West Raleigh • Greensboro • Winston-SalemDurham