Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Philadelphia, Pennsylvania
Philadelphia Apartment Loans in 2026
Select Commercial specializes in Philadelphia apartment loan solutions for local investors, plus apartment building financing for larger properties and portfolios, with rates as low as 6.07% and up to 80% LTV. For properties elsewhere in the state, see our Pennsylvania apartment loans; for loans over $6 million, see Philadelphia multifamily loans. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in Philadelphia
Philadelphia apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See Pennsylvania apartment loans.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
Philadelphia Apartment Loan Rates (Under $6 Million)
| Loan Type | Rate* | Max LTV |
|---|---|---|
| Apartment 5 Year Fixed | 6.11% | Up to 80% |
| Apartment 7 Year Fixed | 6.09% | Up to 80% |
| Apartment 10 Year Fixed | 6.07% | Up to 80% |
- Rates as low as 6.07% on Philadelphia apartment loans
- Up to 80% LTV on apartment financing
- Terms and amortizations up to 30 years
- Purchase and refinance, including cash-out
- No upfront application or processing fees
- 48-hour written pre-approvals, no cost or obligation
Rates last updated August 2026. They apply to typical apartment loans under $6 million; your rate, LTV and amortization are set by underwriting.
Compare Philadelphia Apartment Loan Programs
As a broker, we compare every program to find your best-fit Philadelphia apartment financing. Typical starting points for properties under $6 million:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Fannie Mae Small Loan | 6.07% | Up to 80% | Non-recourse, fixed to 30 yrs |
| Freddie Mac SBL | 6.09% | Up to 80% | $1M to $7.5M small balance |
| FHA / HUD | 6.11% | Up to 85% | Highest leverage, longest term |
| Bank / portfolio | 6.77% | Up to 75% | Flexible, value-add |
| Bridge | 9.00% | Up to 80% LTC | Reposition, lease-up |
Most apartment lenders look for a debt-service-coverage ratio (DSCR) of at least 1.25x. For properties over $6 million, see our Philadelphia multifamily loans.
2026 Philadelphia Apartment Loan Market: Resilient Hiring and Tight Vacancy Keep Fundamentals Firm
Philadelphia enters 2026 with a sturdy leasing backdrop supported by a healthier job pipeline and vacancy that remains among the tightest in the country. For investors evaluating apartment building loans, the core story behind a competitive Philadelphia apartment loan is still the same: employment growth, the pace of deliveries, vacancy direction, and rent momentum across major submarkets.
Employment
Philadelphia's job market held up better than many metros late in 2025, positioning the region to add about 26,000 jobs in 2026. Healthcare and professional and business services continue to lead hiring, helping support renter demand in areas tied to hospitals, medical offices, and major employment nodes.
Construction and supply
Construction pressure eases, with about 5,500 units expected to deliver in 2026 and apartment stock projected to rise about 1.3%. Even with the pullback, that supply growth rate remains one of the strongest among major mid-Atlantic markets, which makes submarket selection important.
Vacancy
Vacancy is projected to improve by roughly 20 bps in 2026, landing near 3.0%. That keeps Philadelphia in the top tier nationally for tightness, even with above-average deliveries, and supports more durable cash flow assumptions for well-located properties.
Rent trend
A prolonged stretch of vacancy around the low-3% range is expected to keep pricing power intact. Average effective rent is projected to rise to about $1,966 per month in 2026, with rent growth running above many peer metros.
2026 Philadelphia forecast at a glance:
- Employment: about 26,000 jobs added in 2026 (approximately +0.8%)
- Construction: about 5,500 units projected, with inventory growth near 1.3%
- Vacancy: projected near 3.0%, improving by roughly 20 bps
- Rent: average effective rent projected near $1,966 per month
Philadelphia Multifamily Loans (Over $6 Million)
For larger Philadelphia apartment properties, we arrange multifamily loans over $6 million through Fannie Mae DUS, Freddie Mac, FHA/HUD and CMBS. These institutional programs offer non-recourse financing, up to 80% LTV and fixed terms up to 30 years, with even longer fully amortizing options through HUD.
See our Philadelphia multifamily loans page for over-$6 million financing, or explore Fannie Mae and Freddie Mac agency programs.
Recent Apartment Loan Closings
A sample of apartment and multifamily loans we have arranged for investors nationwide.
Philadelphia Apartment Loan Types We Serve
Whether you are purchasing or refinancing a Philadelphia apartment building, we arrange financing for:
- Large urban high-rise apartment buildings
- Suburban garden apartment complexes
- Small apartment buildings with 5+ units
- Underlying cooperative apartment loans
- Portfolios of small apartment and single-family rental properties
- Other multifamily and mixed-use properties
We consider apartment loan requests of all sizes, beginning at $1,500,000.
Other Property & Loan Types We Finance in Philadelphia
As a full-service commercial mortgage broker, we arrange Philadelphia financing across every major property and loan type:
We consider commercial loan requests of all sizes, beginning at $1,500,000.
Philadelphia Neighborhoods We Serve
Select Commercial provides apartment loans throughout Philadelphia, Pennsylvania and the surrounding area, including:
- Center City
- Northern Liberties
- Fishtown
- Old City
- Society Hill
- Rittenhouse Square
- Fairmount
- Graduate Hospital
- University City
- Manayunk
- Roxborough
- Queen Village
- Bella Vista
- Point Breeze
- Brewerytown
- Kensington
- Passyunk Square
- Germantown
- Chestnut Hill
- Mount Airy
For other cities in the state, see Pennsylvania apartment loans.
Nearby Apartment Loan Markets
We finance apartment buildings nationwide. Explore related markets:
What Our Clients Say
“I am a veterinarian who purchased an existing practice. I was surprised to find a company that offered 100% financing at a good rate, with great terms and rates for medical office financing.”
Carol K. · Chicago, IL“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MAGet Your Philadelphia Apartment Loan Quote
No cost, no obligation. Written answers within 48 hours on Philadelphia apartment loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up