Pennsylvania Apartment Loans

$1,000,000 Minimum

Pennsylvania Apartment Loan Rates - Rates updated September 26th, 2021

Pennsylvania Apartment Loan Programs Over $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 2.58% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 2.69% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 2.90% Up to 80% Get Free Quote
Pennsylvania Apartment Loan Programs Under $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 3.22% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 3.23% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 3.25% Up to 80% Get Free Quote
Pennsylvania Apartment Building Pennsylvania
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 Pennsylvania. 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. Pennsylvania 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 PA 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.

Pennsylvania Apartment Loan Benefits

Pennsylvania Apartment Loan rates start as low as 2.58% (as of September 26th, 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!"


Pennsylvania Apartment Loan Types We Serve

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

    Pennsylvania Multifamily Loan Information and Economic Overview

    Philadelphia Economic Trends Philadelphia Economic Trends

    Pennsylvania ranks sixth in the United States with gross state product of $803 billion. As an independent country, Pennsylvania’s economy would rank as the 19th-largest in the world based on GDP. On a per-capita basis, Pennsylvania's GSP of $50,666 ranks 22nd in the country. In terms of commercial mortgages, there are over 1.8 million mortgages for properties throughout the state of Pennsylvania. The average value of these commercial mortgages is over $7.3 million, 34% above the United States average. This data demonstrates that Pennsylvania is a terrific place to obtain a commercial mortgage loan.

    Philadelphia is one of the best cities in Pennsylvania to obtain commercial mortgage financing. Philadelphia’s economic growth led by its growing technology market, continues to attract commercial real estate investors and developers. Multifamily and apartment buildings are coveted commercial real estate investments in Philadelphia. The Philadelphia metropolitan locale is set to deliver over 6,000 new rental apartments by the end of the year, which would be the biggest single year in over twenty years. Over the past few years we have witnessed a steady stream of multifamily and apartment deliveries unlike anything we have ever seen, leading many experts to predict that deliveries would fall off in 2019 due to short term rise in vacancy rates. While it is rational to assume that a brief halt would be necessary so that the new apartment units could be absorbed, that simply has not happened. Increases in various factors such as income, employment and population growth have probably contributed to this surprising absorption rate of multifamily units. Aside from Center City, the Greater Norristown submarket has been the strongest with regards to new construction in 2019 with almost 1,200 new apartment and units expected to deliver this year. Absorption has been positive over the past year even with the influx of new apartments and multifamily buildings.

    Commercial real estate investors looking to invest in the Philadelphia market can also look towards office buildings as a solid choice. Propelled by robust job growth, Philadelphia recorded healthy fundamentals throughout the past year. Infusion of talent in the city has successfully led to a big increase in the number of tech and life sciences startups. With a need for office space, these companies have sought commercial real estate in Philadelphia. Yardi Matrix’s office report shows that Philadelphia posted the second most rapid office rent growth in the nation from December 2018 through February of this year. Additionally, the Yardi Matrix report shows that there are many units under development with almost 2.5 million square feet of office space under construction as of March. The completion of Philadelphia’s tallest skyscraper, Comcast Center, has led to further commercial real estate development in the urban areas, as well as redevelopment in the suburban markets. 

    Commercial real estate investors can also find much opportunity in the multifamily and apartment market of Pittsburgh. Since 2011 upwards of 10,000 millennials have moved into the Pittsburgh locale. Employment gains in the region are now surpassing the national rate at 1.6% year-over-year. This combination is promoting a rise in multifamily development and much potential in the apartment building market. Until recently, Pittsburgh was very undersupplied in terms of new apartments. The average age of an urban apartment building in Pittsburgh was about 70 years old until just a few years ago. More apartment units have been developed in the past three years than in the previous decade and a half. Nearly 1,000 new units were delivered three years ago, and over 2,370 apartment units are expected to have been delivered over the past two years. Thus, Pennsylvania is a great place for investors to look into commercial mortgage financing.

    2020 Philadelphia Apartment Market Forecast

    Philadelphia Completions vs. Absorption Philadelphia Completions vs. Absorption

    The Philadelphia National Multifamily Index Rank is at 24, up 1 place. Tightening vacancy and climbing rent boost Philadelphia’s placing in this year’s NMI.

    Employment in Philadelphia is up 0.7%. About 20,000 jobs will be created in 2020 as a low-4 percent unemployment rate constrains hiring compared with last year.

    Construction in Philadelphia is expected to exceed 5,600 units. Roughly 100 more units will arrive this year compared with 2016 when a then-record 5,500 apartments were completed. Last year approximately 5,200 rentals opened.

    Vacancy in Philadelphia is down 20 bps. An above-average number of apartments being absorbed will help reduce the metro-wide vacancy rate to 3.2 percent in 2020, its lowest year-end value since 2000.

    Rent in Philadelphia is up 4.7%. The average effective rent will rise to $1,450 per month this year following a 5.2 percent rate of improvement in 2019.

    Investment opportunities in Philadelphia remain strong for those looking to finance their next purchase with an apartment loan. Upcoming large-scale office developments in Conshohocken and Newton Square may drive increased multifamily investment into these areas in expectation of higher renter demand. We highly recommend any investors looking to buy in the Philadelphia market to reach out to us regarding a multifamily loan.

    Data provided by Marcus & Millichap.

    Philadelphia Vacancy and Rents Philadelphia 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.

    Pennsylvania 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.

    Pennsylvania 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.

    Pennsylvania Multifamily Loan Information and Economic Overview

    Pennsylvania ranks sixth in the United States with gross state product of $803 billion. As an independent country, Pennsylvania’s economy would rank as the 19th-largest in the world based on GDP. On a per-capita basis, Pennsylvania's GSP of $50,666 ranks 22nd in the country. In terms of commercial mortgages, there are over 1.8 million mortgages for properties throughout the state of Pennsylvania. The average value of these commercial mortgages is over $7.3 million, 34% above the United States average. This data demonstrates that Pennsylvania is a terrific place to obtain a commercial mortgage loan.

    Philadelphia is one of the best cities in Pennsylvania to obtain commercial mortgage financing. Philadelphia’s economic growth led by its growing technology market, continues to attract commercial real estate investors and developers. Multifamily and apartment buildings are coveted commercial real estate investments in Philadelphia. The Philadelphia metropolitan locale is set to deliver over 6,000 new rental apartments by the end of the year, which would be the biggest single year in over twenty years. Over the past few years we have witnessed a steady stream of multifamily and apartment deliveries unlike anything we have ever seen, leading many experts to predict that deliveries would fall off in 2019 due to short term rise in vacancy rates. While it is rational to assume that a brief halt would be necessary so that the new apartment units could be absorbed, that simply has not happened. Increases in various factors such as income, employment and population growth have probably contributed to this surprising absorption rate of multifamily units. Aside from Center City, the Greater Norristown submarket has been the strongest with regards to new construction in 2019 with almost 1,200 new apartment and units expected to deliver this year. Absorption has been positive over the past year even with the influx of new apartments and multifamily buildings.

    Commercial real estate investors looking to invest in the Philadelphia market can also look towards office buildings as a solid choice. Propelled by robust job growth, Philadelphia recorded healthy fundamentals throughout the past year. Infusion of talent in the city has successfully led to a big increase in the number of tech and life sciences startups. With a need for office space, these companies have sought commercial real estate in Philadelphia. Yardi Matrix’s office report shows that Philadelphia posted the second most rapid office rent growth in the nation from December 2018 through February of this year. Additionally, the Yardi Matrix report shows that there are many units under development with almost 2.5 million square feet of office space under construction as of March. The completion of Philadelphia’s tallest skyscraper, Comcast Center, has led to further commercial real estate development in the urban areas, as well as redevelopment in the suburban markets. 

    Commercial real estate investors can also find much opportunity in the multifamily and apartment market of Pittsburgh. Since 2011 upwards of 10,000 millennials have moved into the Pittsburgh locale. Employment gains in the region are now surpassing the national rate at 1.6% year-over-year. This combination is promoting a rise in multifamily development and much potential in the apartment building market. Until recently, Pittsburgh was very undersupplied in terms of new apartments. The average age of an urban apartment building in Pittsburgh was about 70 years old until just a few years ago. More apartment units have been developed in the past three years than in the previous decade and a half. Nearly 1,000 new units were delivered three years ago, and over 2,370 apartment units are expected to have been delivered over the past two years. Thus, Pennsylvania is a great place for investors to look into commercial mortgage financing.

    Pennsylvania Apartment Loans

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


    PhiladelphiaPittsburgh • Allentown • Lancaster • Erie