San Antonio Apartment Loans
Loans from $1 Million to $25 Million+
|San Antonio Apartment Loan Rates Over $6,000,000||Rates (start as low as)||LTV|
|Apartment 5 Year Fixed Loan Rates||4.33%||Up to 80%||Get Free Quote|
|Apartment 7 Year Fixed Loan Rates||4.39%||Up to 80%||Get Free Quote|
|Apartment 10 Year Fixed Loan Rates||4.49%||Up to 80%||Get Free Quote|
|San Antonio Apartment Loan Rates Under $6,000,000||Rates (start as low as)||LTV|
|Apartment 5 Year Fixed Loan Rates||4.46%||Up to 80%||Get Free Quote|
|Apartment 7 Year Fixed Loan Rates||4.52%||Up to 80%||Get Free Quote|
|Apartment 10 Year Fixed Loan Rates||4.62%||Up to 80%||Get Free Quote|
Select Commercial has excellent San Antonio Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of San Antonio. 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. San Antonio is one of the cities that we consider to be a premium market 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 San Antonio TX 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.
San Antonio Apartment Loan Benefits
San Antonio Apartment Loan rates start as low as 4.33% (as of May 16th, 2022)
• 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
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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!"
San Antonio Apartment Loan Types We Serve
If you are looking to purchase or refinance a San Antonio apartment building, don't hesitate to contact us. We arrange financing in the city of San Antonio 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
San Antonio Apartment Loan Helpful ArticlesHow 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
How to Qualify for a Great Rate When Refinancing Your Apartment Building
2021 San Antonio Apartment Market and Trends
Many people in San Antonio moved to the suburbs during the pandemic, as remote work allowed people to move away from the city. This trend is continuing even as some companies begin to bring employees back into the office. Household formation is particularly strong in the New Braunfels-Schertz-Universal City submarket, spanning the I-35 corridor between the rapidly expanding cities of Austin and San Antonio. Vacancy in this submarket declined 210 basis points to 3.9 percent in the 12 months ending in June 2021. Other factors benefiting the San Antonio multifamily market in 2021 are rising home prices and limited for-sale inventory. Class A vacancy dropped 290 basis points to 3.6 percent and Class B availability eased 200 basis points to 3.7 percent in 2021. However, there is a lot of competition on the horizon in San Antonio. The 1,900-acre Mayfair project will create 6,000 housing units in New Braunfels over the next 15 years, with the first houses finalizing in 2023.
Employment is up in the San Antonio market in 2021. About 47,000 jobs are expected to be created this year. This amounts to a gain of about 4.5 percent jobs in 2021. About 42,000 jobs were lost during COVID-19. By the end of 2021 there should be more jobs in San Antonio than there were before the pandemic. Construction of new apartment units is down in the market in 2021. About 4,000 new units will be completed this year. This year’s delivery volume will drop to a decade low as market inventory increases by less than 2 percent in 2021. Vacancy is down in the San Antonio market in 2021. The vacancy rate is expected to decrease 50 basis points. Rents are up in 2021. Rents are expected to increase 6.2 percent to an average effective rent of $1,070 in 2021.
2021 Multifamily Outlook
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.
What Happened with Apartment Loans in 2020
San Antonio Apartment Performance Gains Momentum As Wave of Supply Abates
Workforce fueling strong lease-up performance. Six consecutive years of at least 5,000 multifamily units delivered annually ended in 2019, and this abatement will continue in 2020. No longer facing profound supply headwinds, lease-ups will overshadow apartment deliveries and contract vacancy into the mid-5 percent range after hovering near the high-6 percent area for the majority of this decade. Demand is buoyed by consistent employment growth, primarily within working-class fields. Wholesale and retail trade jobs are being created at a faster rate than the national average, as corporations establish strategic logistical facilities inland from Gulf of Mexico ports and within the NAFTA corridor. Additionally, the inflow of retirees is boosting the need for leisure and healthcare workers. The working-class population segment will remain a tailwind for budget-friendly rentals, holding vacancies in the mid-5 percent range for Class B/C apartment properties, helping maintain the positive growth trajectory of multifamily rental costs. Investors looking to purchase multifamily property in the San Antonio market should definitely look into taking out an apartment loan to finance their acquisition.
Promising outlook ramps up competition for a variety of multifamily assets. Investors are taking notice of San Antonio’s improving market performance as the two years feeding into 2020 featured a compounded 100-basis-point vacancy reduction and 10.9 percent growth to average effective rent. An unsaturated construction pipeline allows tightening conditions to persist this year, and competition for assets will intensify. The corridor between Interstate 10 and the I-410 loop on the west side of the core will appeal to apartment investors seeking value-add multifamily assets. While demand is receding apartment availability and pushing up rent here, Class C multifamily properties often trade for less than $5 million with first-year returns in the 6 to 7 percent range. Institutional investors will deploy capital for newly built luxury assets near the University of Texas-San Antonio, where per apartment unit prices of $150,000 or higher and cap rates in the low-4 to mid-4 percent area materialized during 2019. San Antonio is a great market for investors to finance their next apartment purchase with a multifamily loan.
2020 San Antonio Apartment Market Forecast
The San Antonio National Multifamily Index Rank is at 35, up 3 places. Elevated rent gains and moderated development improve San Antonio standing in the 2020 Index.
Employment in San Antonio is up 1.6%. Following 2.4 percent growth logged in 2019, job creation slows as the unemployment rate nears 3 percent.
Construction in San Antonio is expected to exceed 3,700 units. Developers bring fewer than 4,000 rentals to market for the second consecutive year. Last year 3,400 units were finalized.
Vacancy in San Antonio is down 20 bps. Net absorption again outpaces deliveries and the 80-basis- point contraction recorded each of the two previous years is underscored in 2020 as vacancy ticks down to 5.6 percent.
Rent in San Antonio is up 5.7%. Tightening conditions escalate rent growth from the 5 percent advance posted in 2019. The average effective rent will reach $1,075 this year.
Investment opportunities in San Antonio remain strong for those looking to finance their next purchase with an apartment loan. Investors previously targeting other Texas markets will be lured into San Antonio, where the average cap rate remains higher and rent growth is stronger in comparison. We highly recommend any investors looking to buy in the San Antonio market to reach out to us regarding a multifamily loan.
Data provided by Marcus & Millichap.
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.
San Antonio Apartment Loan Options
San Antonio Freddie Mac Apartment loans
San Antonio 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.
San Antonio Fannie Mae Apartment loans
The San Antonio Fannie Mae multifamily loan platform is one the leading sources of capital for San Antonio 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).
San Antonio FHA HUD Multifamily Loans
HUD (Department of Housing and Urban Development) and FHA (Federal Housing Administration) insured 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.
San Antonio Apartment Lending 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:
- San Antonio 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.
San Antonio Apartment Building Loans
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