NYC Apartment Loans
Loans from $500,000 to $25 Million+

NYC Apartment Loan Rates - Rates updated February 7th, 2023

NYC Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 4.96% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 4.82% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 4.79% Up to 80% Get Free Quote
NYC Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 5.12% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 4.98% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 4.98% Up to 80% Get Free Quote

NYC Apartment Loan FAQs

There are many different types of lenders offering a myriad of different loan products to finance the acquisition or refinance of apartment properties nationwide. These lenders include agency lenders (Fannie Mae and Freddie Mac), local and national banks, insurance companies, credit unions and private lenders.

Most lenders write apartment loans for five, seven or ten years (fixed) with a 30 year amortization. It is also possible to obtain loans that are fixed for up to 30 years, although this is not the norm. Rates are typically based on a margin over the corresponding US Treasury rate.

Lenders offer non-recourse to strong borrowers and solid properties. The borrower will be expected to have strong credit, good net worth and liquidity, and experience owning and managing similar properties. The property will be expected to demonstrate solid long term positive cash flow, be in good to excellent condition, and be located in a strong market with low vacancy rates.

Apartment loans are typically screened and pre-approved in 2-3 days. Since lenders require appraisals, environmental and property condition reports, and title, closings will usually take 45-60 days from application.

How do we help our NYC apartment loan clients get the best rate and terms?

NYC Apartment Building NYC
Apartment Loan

Select Commercial has excellent NYC apartment loan products and options available for owners and purchasers in need of multifamily properties throughout the city of NYC. Whether you need an apartment lender to finance a small apartment property, a complex with hundreds of units, or a co-operative, we can help you find the optimal apartment loan solution to meet your apartment 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. NYC is one of the cities that we consider to be a premium market and we actively look to originate good quality apartment loans here for our clients. We have a diverse array of many available loan products to help qualified NYC 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. 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.

NYC Rental Property Loans

At Select Commercial Funding, we pride ourselves on offering some of the best financing options in the industry. We are proud to offer rental property loans for small balance multifamily and mixed-use properties in NYC. In addition, we offer some of the best options for DSCR loans and rental portfolio loans in NYC.

With interest rates on the rise, many investors have been looking to invest in 1-4 unit properties. We launched our NYC DSCR loan program and NYC rental loan program to meet our clients’ needs. We are offering incredibly competitive rates and terms to our clients seeking rental property loans for larger apartment buildings and smaller 1-4 unit properties.

Loan programs and highlights include:
• Small multifamily loans as low as $500,000
• Mixed use loans
• Dscr loans
• Single family rental loans
• Rental loans
• Rental property loans
• Rental portfolio loans
• Portfolio loans for rental properties

Call today for more information or fill out our No Obligation Free Quote.

NYC Apartment Loan Benefits

NYC Apartment Loan rates start as low as 4.79% (as of February 7th, 2023)
• 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

Recent TRUSTPILOT Reviews

Select Commercial Funding Reviews from TRUSTPILOT

A three year journey
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Apartment Loan Basics

NYC 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 Loans - Lending Options

NYC Apartment Loan Helpful Articles

How 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
Uncomplicated Underwriting
How to Qualify for a Great Rate When Refinancing Your Apartment Building

Apartment Loans - Recent Closings

What are the market conditions expected for NYC Apartment Loans in 2023?

Experts anticipate above average performance for the multifamily sector in 2023. Occupancy rates are expected to remain above 95% and rental rates are expected to grow by 4%. These figures are not as robust as the past couple of years, however, which saw vacancy rates under 3% and rent growth in the double digits. During the second and third quarters of 2022, leasing activity for apartment buildings was slow. This coincided with a solid pace of new multifamily deliveries to the market. The combination of slower leasing activity and heightened supply caused the overall vacancy rate to increase by 150 basis points in the middle portion of 2022. Throughout 2023, vacancy rates will likely continue to rise at a slower pace and move toward the 20-year average of 5%.

The overall multifamily housing demand is expected to remain strong in 2023. With inflation continuing to impact consumer spending, more and more renters are determining whether to renew their leases. While new leasing activity stalled throughout the middle portion of 2022, the overall multifamily demand remained pretty strong. The rise in home prices and residential mortgage rates is also helping to increase multifamily demand. Monthly payments for homes purchased in the third quarter of 2022 were, on average, 57% more than monthly apartment rents. That difference is the widest gap on record. Even if home values and mortgage rates decrease in 2023, the relatively lower cost of renting will support multifamily demand.

Rapidly rising interest rates on multifamily loans caused multifamily investment activity to slow down in the second half of 2022. Many buyers not willing to pay higher rates for apartment loans stepped out of the market. As apartment loan rates stabilize in 2023, many buyers will return to the market and look to finance apartment building investments with multifamily loans. The multifamily sector has historically been one of the most attractive sectors to investors. Over the past decade, the multifamily sector has seen average annual total returns of 9.3%. Additionally, this sector offers multifamily loan options from both Fannie Mae and Freddie Mac. These apartment loan options are not available for other asset classes. As the market stabilizes in 2023, more and more investors will look to acquire apartment buildings and finance them with agency apartment loans.

One other factor that caused the multifamily sector to stall in 2022 is that buyers expected cap rates to increase commensurate with the rise in interest rates, but sellers still expected higher prices.  This caused many deals to simply not cash flow. Cap rates are expected to increase in 2023. With this increase, many buyers will have the option to finance acquisitions with apartment loans at more attractive prices.

NYC Apartment Loan Outlook - 2022

Reopening Market Creates Demand for Rentals - Capital Investment Causes Market Activity

Multifamily fundamentals return to pre-Covid levels. While the area’s job recovery remains above the national rate, employment totals have not yet reached the levels seen prior to the pre-Covid peak. Despite NYC’s slower employment recovery, apartment fundamentals had already reached pre-Covid levels by the end of 2021. A gradual reopening of downtown and urban amenities brought back the appeal of living in New York City and created more in-person jobs, helping lower vacancy rates in every class of apartment property to levels similar to levels seen before the pandemic. The average apartment rent is also now above the level reported before the Covid pandemic. During 2022, new apartment expansion will gradually slow, keeping demand and rent growth high. A large number of new apartments in Brooklyn and Manhattan could affect vacancy rates if employers do not require employees to return to their offices and extend work from home policies. A larger number of permanent remote workers may slow renter demand for apartments with short commutes to offices.

Investment market returns to life, but plenty of room for growth continues. Following expanding sales volume throughout 2021, investor appetites may slow this year but will stay well above the lows seen during the pandemic. As pent-up buyer demand slows, potential regulatory reforms could create sudden changes to market behavior. Similar to regulations passed in other cities across the state, New York City is looking at a “good cause eviction” policy, introducing among other changes an effective rental increase limit of 5%. In 2019, previous rent-control modifications caused many investors to quickly sell rent-regulated apartments ahead of the changes, while other investors chose to move from value-add strategies to holding long term investments. Regardless, possible changes to rent control regulations has done little to slow investment capital. New York City saw a large increase in out-of-state purchasers buying apartments in the area this past year, especially in Queens, where private buyers compete with institutions for Class B and C apartment properties.

2022 Apartment Market Forecast and New York City Apartment Loan Economics

New York City has a National Multifamily Index ranking of 34. New York City is looking at a longer employment recovery timeline after a significant hit during the pandemic, causing a bottom half ranking.

Employment is up 3.5%. Employers will expand employment levels by 150,000 positions in 2022, ahead of the national average of 2.5%. New construction will add 17,000 new apartments. Builders will finalize 1,000 fewer units in 2022 than the 18,000 new apartments completed in 2021. Total apartment levels are scheduled to expand by 0.8%, the lowest margin in six years.

Vacancy rates are down 10 basis points. High rental demand keeps net absorption rates above the trailing 5-year average as vacancy rates decline to 2% as a result of a combination of returning and new renters entering the market.

Rental rates are up 2.2%. Slower deliveries and strong housing demand keep rent growth higher than the historical market average as average rent climbs to $2,815 per month in 2022.

Investment in New York City apartments. Class B cap rates could drop lower as investor interest increases, while possible regulatory changes may cause some private investors to consider deals outside of New York City.

New York City 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 York City apartment loan rate increases will affect market activity in 2022.

All data provided by Marcus and Millichap

NYC Apartment Market and Trends - 2021

The COVID-19 pandemic rocked the New York City multifamily market. The city lost almost 900,000 jobs which led to a ton of apartment renters leaving the city for the suburbs. As vaccines continue to be rolled out in 2021, many businesses are reopening and hiring new employees. This has poised New York City’s multifamily market to recoup a lot of losses in 2021. As people once again become attracted to the New York City lifestyle, the traditional demand drivers that made New York one of the most desirable residential locations before the pandemic will resurface, driving apartment leasing up in 2021. Absorption will also be helped out by lower rents, as effective rates took about a two year step back in 2020.

With the continued vaccine rollouts, experts believe that around 180,000 jobs will be added to the New York City market in 2021. The city’s employment rate will grow by about 4.4 percent and should end 2021 within 9 percent of the pre- Covid-19 levels. Fewer units are set to be constructed in 2021. There will be about 15,000 new units in 2021. The majority of these units will be delivered to the Brooklyn and Queens markets. Vacancy is set to increase about 60 basis points to 4.3 percent in 2021. Rents will be driven down in 2021. They should come down about 1.2 percent to an average effective rent of $2,636.

- Data provided by Marcus and Millichap

Apartment Loan Outlook - 2021

  • 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. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.

    NYC Freddie Mac Apartment loans

    NYC 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.

    Freddie Mac Loan and Rate Information

    NYC Fannie Mae Apartment loans

    The NYC Fannie Mae multifamily loan platform is one the leading sources of capital for NYC 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).

    Fannie Mae Loan and Rate Information

    NYC FHA Multifamily Loans

    FHA 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 FHA will underwrite the loan in order to provide the insurance. There are two primary types of FHA insured loans that multifamily investors can take advantage of.

    Learn More About FHA Multifamily Loans

    NYC HUD Multifamily Loans

    HUD 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.

    Learn More About HUD Multifamily Loans

    NYC Apartment Loans 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:

    • NYC 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.

    NYC Apartment Loans

    Select Commercial provides apartment loans throughout NYC, New York including, but not limited to, the areas below.

    Alphabet City • Kips Bay • Roosevelt Island • Astor Row • Koreatown • Suffolk • Battery Park City • Lenox Hill • San Juan Hill • Bowery • Le Petit Senegal • SoHo • Carnegie Hill • Liberty Island • South Street Seaport • Chelsea • Lincoln Square • South Village • Chinatown • Little Germany • Strivers Row • Civic Center • Little Italy • Stuyvesant Square • Columbus Circle • Little Syria • Stuyvesant Town • Cooperative Village • Loisaida • Sugar Hill • Diamond District • Lower East Side • Sutton Place • East Harlem • Lower Manhattan • Sylvan Court Mews • East Village • Madison Square • Tenderloin • Financial District • Manhattan Valley • Theatre District • Five Points • Manhattanville • Times Square • Flatiron District • Marble Hill • TriBeCa • Garment District • Marcus Garvey Park • Tudor City • Gashouse District • Meatpacking District • Turtle Bay • Gramercy Park • Midtown Manhattan • Two Bridges • Greenwich Village • Morningside Heights • Upper East Side • Hamilton Heights • Murray Hill • Upstate New York • Harlem • NoHo • Upper Manhattan • Hells Kitchen • Nolita • Upper West Side • Herald Square • NoMad • Wards Island • Hudson Heights • Peter Cooper Village • Washington Heights • Hudson Yards • Pomander Walk • Waterside Plaza • Inwood • Radio Row • West Village • Italian Harlem • Randalls Island • Yorkville