Ohio Apartment Loans and Multifamily Financing $1,000,000+

Ohio 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

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 Ohio. 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. Ohio 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 OH 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.

Ohio Apartment Loan Benefits

Ohio 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

Ohio Apartment Loan Types We Serve

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

Ohio 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.

Ohio 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).

Ohio 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.

Ohio 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.

Ohio Multifamily Loan Information and Economic Overview

Ohio is the seventh largest economy in the United States with a gross state product of over $650 billion. If Ohio were its own country its economy would rank as the 21st largest economy in the world. A few years ago, Ohio was ranked in the top ten states in the country for best business climate. Ohio is frequently considered to be the Industrial Capital of America, dating to its roots in the Rust Belt and Ohio's present-day scientific and intelligence dominance. Ohio has a very active commercial real estate market and is highly regarded by lenders offering commercial mortgage financing. Here are some quick facts:

  • Ohio is home to almost 2.4 million commercial properties.
  • With 1.3 million parcels, land is the largest property type in Ohio leaving much potential for commercial real estate development.
  • The state of Ohio contains 200,000 multifamily properties.
  • About 275,000 of Ohio's commercial properties are currently located in Qualified Opportunity Zones with high investment upside.

Overall the Ohio apartment market ranks among the most consistent in the nation in terms of performance making Ohio a terrific place to receive commercial mortgage financing. There has been a tempered supply growth in multifamily units resulting in strong rent gains in various markets.  These trends are expected to continue as vacancy in all the Ohio’s big markets remains below 5 percent. There is a lot upside potential in the Class C sector, where a housing shortage continues across the Ohio market. Vacancy is lowest in this segment with below average rent hikes. The Cincinnati multifamily market is very hot right now. We have been witnessing Steady demand across all apartment classes. Over the past four years the demand for rental units in Cincinnati has been stable, bolstering absorption totals that outmatched supply additions. The city’s economic strength has supported the growing demand pool as people move into the region in search of new employment opportunities. The wide reach of the demand pool here bodes well for existing property performance and future development. Commercial real estate builders are doing most of their work near the core of the city, where new developments will provide residents a highly amenitized experience in proximity to work and leisure venues. Cleveland is also a very intriguing spot for commercial real estate and multifamily investment. Downtown Cleveland has remained the focal point of the city’s current real estate development. The city’s rental market has turned around recently, with heightened demand diminishing the vacancy rate by 170 basis points. Throughout this period development has remained strong with more than 2,000 multifamily units added to the local inventory.

Ohio’s average rent is typically lower than the national average. Apartments in Cleveland are the state’s most expensive, with an average rent of $1,081 per month. Cincinnati apartments rank second with an average monthly rent of about $975 followed by Columbus with average monthly rents of just under $924. Ohio’s cheapest cities to rent in are Toledo at a meager $714 per month and Dayton at just $765 per month. That being said Dayton rents are trending upwards (renters are paying $34 more per month than they did in April of last year) as the city is experiencing growing rents, with apartment prices increasing by 4.7% year over year. Behind Dayton, Cleveland apartments had the second highest rental rate increase in Ohio, with increases of 4% or $42 more expensive than the same month last year. Ohio’s slowest rising rents were in Akron with a small increase of 2.1%, and in Toledo, where rents rose by just 2.3% year over year. In terms of commercial mortgages, there are over 2 million mortgages for commercial real estate properties throughout the state of Ohio. The average value of these mortgages is just above $6 million, 14% above the United States average. This information shows that Ohio is a wonderful place to take out a commercial mortgage loan.

Ohio Apartment Loans

Select Commercial provides apartment loans and multifamily loans throughout the state of Ohio including but not limited to the areas below.

ColumbusClevelandCincinnatiToledoAkron • Dayton