Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Phoenix, Arizona
Phoenix Apartment Loans in 2026
Select Commercial specializes in Phoenix apartment loan solutions for local investors, plus apartment building financing for larger properties and portfolios, with rates as low as 5.68% and up to 80% LTV. For properties elsewhere in the state, see our Arizona apartment loans; for loans over $6 million, see Phoenix multifamily loans. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in Phoenix
Phoenix apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See Arizona apartment loans.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
Phoenix Apartment Loan Rates
Rates updated as of August 21, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.08% | Up to 80% |
| 7 Year Fixed | 6.19% | Up to 80% |
| 10 Year Fixed | 6.28% | Up to 80% |
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 5.68% | Up to 75% |
| 7 Year Fixed | 5.79% | Up to 75% |
| 10 Year Fixed | 5.88% | Up to 75% |
- Streamlined underwriting for institutional multifamily
- Cash-out refinances are acceptable
- Interest-only and non-recourse options
- Minimum 1.25x debt-service-coverage ratio
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Compare Phoenix Apartment Loan Programs
As a broker, we compare every program to find your best-fit Phoenix apartment financing. Typical starting points for properties under $6 million:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Fannie Mae Small Loan | 6.08% | Up to 80% | Non-recourse, fixed to 30 yrs |
| Freddie Mac SBL | 6.15% | Up to 80% | $2M to $10M small balance |
| FHA / HUD | 6.12% | Up to 85% | Highest leverage, longest term |
| Bank / portfolio | 6.25% | 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 Phoenix multifamily loans.
2026 Phoenix Apartment Loan Market: East Valley Strengthens as Construction Pullback Reduces Supply Pressure
Phoenix heads into 2026 with a much more favorable supply backdrop as completions cool from the record delivery waves of the prior two years. For Phoenix investors pursuing apartment building loans, the same fundamentals that support a strong Phoenix apartment loan remain the focus, including employment growth, new supply, vacancy direction, and rent momentum across key corridors.
Employment
Hiring is expected to moderate in 2026, with about 17,000 new roles added. Even with the slowdown, Phoenix's job growth rate is projected to remain more than twice the U.S. average and the fastest among major Mountain West metros, supporting renter demand.
Construction and supply
Completions in 2026 are expected to fall by nearly 50% from the record delivery waves of the previous two years, with about 13,000 units delivering. Even after the pullback, Phoenix inventory growth is still projected to rank among the fastest of major U.S. markets, so underwriting should still account for submarket level supply differences.
Vacancy
Phoenix vacancy is expected to improve slightly as deliveries slow, ending near 5.9% after about a 10 bps decline. That rate remains roughly 70 bps above the metro's 10-year average, with performance split by corridor as the East Valley and North Phoenix-Scottsdale areas trend down while parts of the West Valley lag.
Rent trend
Rents are expected to firm as supply pressures ease. The average effective rent is projected to reach about $1,540 per month in 2026, up roughly 2.6%. Phoenix rents remain about 20% below the U.S. average, which can help sustain renter appeal for households relocating from higher-cost markets.
2026 Phoenix forecast at a glance:
- Employment: about 17,000 jobs added in 2026 (approximately +0.7%)
- Construction: about 13,000 units projected for delivery, down sharply from the prior two years
- Vacancy: projected near 5.9%, improving by roughly 10 bps
- Rent: average effective rent projected near $1,540 per month, up about 2.6%
Phoenix Multifamily Loans (Over $6 Million)
For larger Phoenix 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 Phoenix 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.
Phoenix Apartment Loan Types We Serve
Whether you are purchasing or refinancing a Phoenix 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 Phoenix
As a full-service commercial mortgage broker, we arrange Phoenix financing across every major property and loan type:
We consider commercial loan requests of all sizes, beginning at $1,500,000.
Phoenix Neighborhoods We Serve
Select Commercial provides apartment loans throughout Phoenix, Arizona and the surrounding area, including:
- Ahwatukee Foothills
- Alhambra
- Camelback East
- Camelback Corridor
- Central City
- Central Phoenix
- Cooper Square
- Deer Valley
- Desert View
- Downtown
- Encanto
- Estrella
- Maryvale
- Metrocenter
- Moon Valley
- North Mountain
- North Phoenix
- Paradise Valley
- Roosevelt
- South Mountain
- South Phoenix
- Sunnyslope
For other cities in the state, see Arizona 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 Phoenix Apartment Loan Quote
No cost, no obligation. Written answers within 48 hours on Phoenix apartment loans from $1,500,000.
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- For 5+ unit and commercial properties, $1.5M and up