San Bernardino Apartment Loans

Loans from $1 Million to $25 Million+

San Bernardino Apartment Loan Rates - Rates updated January 30th, 2023

San Bernardino Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 4.97% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 4.77% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 4.70% Up to 80% Get Free Quote
San Bernardino Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 5.21% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 4.87% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 4.80% Up to 80% Get Free Quote

San Bernardino Apartment Loan FAQs

There are many different types of lenders offering a myriad of different loan products to finance the acquisition or refinance of apartment properties nationwide. These lenders include agency lenders (Fannie Mae and Freddie Mac), local and national banks, insurance companies, credit unions and private lenders.

Most lenders write apartment loans for five, seven or ten years (fixed) with a 30 year amortization. It is also possible to obtain loans that are fixed for up to 30 years, although this is not the norm. Rates are typically based on a margin over the corresponding US Treasury rate.

Lenders offer non-recourse to strong borrowers and solid properties. The borrower will be expected to have strong credit, good net worth and liquidity, and experience owning and managing similar properties. The property will be expected to demonstrate solid long term positive cash flow, be in good to excellent condition, and be located in a strong market with low vacancy rates.

Apartment loans are typically screened and pre-approved in 2-3 days. Since lenders require appraisals, environmental and property condition reports, and title, closings will usually take 45-60 days from application.

How do we help our San Bernardino apartment loan clients get the best rate and terms?

San Bernardino Apartment Building San Bernardino
Apartment Loan

Select Commercial has excellent San Bernardino apartment loan products and options available for owners and purchasers in need of multifamily properties throughout the city of San Bernardino. Whether you need an apartment lender to finance a small apartment property, a complex with hundreds of units, or a co-operative, we can help you find the optimal apartment loan solution to meet your apartment 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 Bernardino is one of the cities that we consider to be a premium market and we actively look to originate good quality apartment loans here for our clients. We have a diverse array of many available loan products to help qualified San Bernardino CA 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 Bernardino Apartment Loan Benefits

San Bernardino Apartment Loan rates start as low as 4.70% (as of January 30th, 2023)
• 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

Recent TRUSTPILOT Reviews

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!"


Apartment Loan Basics

San Bernardino Apartment Loan Types We Serve

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

 

Apartment Loans - Lending Options

San Bernardino Apartment Loan Helpful Articles

How 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
Uncomplicated Underwriting
How to Qualify for a Great Rate When Refinancing Your Apartment Building

Apartment Loans - Recent Closings

What are the market conditions expected for San Bernardino Apartment Loans in 2023?

Experts anticipate above average performance for the multifamily sector in 2023. Occupancy rates are expected to remain above 95% and rental rates are expected to grow by 4%. These figures are not as robust as the past couple of years, however, which saw vacancy rates under 3% and rent growth in the double digits. During the second and third quarters of 2022, leasing activity for apartment buildings was slow. This coincided with a solid pace of new multifamily deliveries to the market. The combination of slower leasing activity and heightened supply caused the overall vacancy rate to increase by 150 basis points in the middle portion of 2022. Throughout 2023, vacancy rates will likely continue to rise at a slower pace and move toward the 20-year average of 5%.


The overall multifamily housing demand is expected to remain strong in 2023. With inflation continuing to impact consumer spending, more and more renters are determining whether to renew their leases. While new leasing activity stalled throughout the middle portion of 2022, the overall multifamily demand remained pretty strong. The rise in home prices and residential mortgage rates is also helping to increase multifamily demand. Monthly payments for homes purchased in the third quarter of 2022 were, on average, 57% more than monthly apartment rents. That difference is the widest gap on record. Even if home values and mortgage rates decrease in 2023, the relatively lower cost of renting will support multifamily demand.


Rapidly rising interest rates on multifamily loans caused multifamily investment activity to slow down in the second half of 2022. Many buyers not willing to pay higher rates for apartment loans stepped out of the market. As apartment loan rates stabilize in 2023, many buyers will return to the market and look to finance apartment building investments with multifamily loans. The multifamily sector has historically been one of the most attractive sectors to investors. Over the past decade, the multifamily sector has seen average annual total returns of 9.3%. Additionally, this sector offers multifamily loan options from both Fannie Mae and Freddie Mac. These apartment loan options are not available for other asset classes. As the market stabilizes in 2023, more and more investors will look to acquire apartment buildings and finance them with agency apartment loans.


One other factor that caused the multifamily sector to stall in 2022 is that buyers expected cap rates to increase commensurate with the rise in interest rates, but sellers still expected higher prices.  This caused many deals to simply not cash flow. Cap rates are expected to increase in 2023. With this increase, many buyers will have the option to finance acquisitions with apartment loans at more attractive prices.

San Bernardino Vacancy and Rents San Bernardino Rent and Sales Trends

San Bernardino Apartment Loan Outlook - 2022

Residents From Neighboring Cities Relocate to Southern California’s Most Affordable Housing Market

Record setting employment figures create very low vacancy rates. Residents relocating from Los Angeles County to San Bernardino in 2021 caused the highest rate of household formation in the Inland Empire in the last 15 years. This population growth created strong rental demand that lowered apartment vacancy rates below 2% throughout the housing market and caused double-digit rent increases in all areas. Despite strong apartment rent increases, the area’s average effective apartment rent was $500 per month lower than Los Angeles’ average as we began 2022. Lower apartment rents and growth of the Inland Empire’s largest employment sectors are expected to continue to attract more relocations to the area in 2022. Known as a major industrial hub, the area is projected to add new transportation and warehousing-related jobs at a healthy pace as new facilities are completed. In addition, the number of education and health services jobs is expected to hit record setting levels. The continued growth of these two market sectors pushes overall employment growth and rental apartment demand, causing the area to continue to be one the country’s tightest apartment markets.

A plethora of investment opportunities attracts a diverse group of investors. The market boasts some of the lowest Class B and C apartment vacancy rates in the country and rampant double-digit rent growth in San Bernardino is drawing the attention of many California-based investors. The wide variety of available apartments for purchase has produced many willing buyers. Private investors seeking $1 million to $5 million apartments at regionally lower prices are active in Coachella Valley and the high desert cities of San Bernardino County. In these areas, apartment properties with fewer than 30 units are available for less than $150,000 per unit. Similar apartment properties sell in Riverside-Corona and San Bernardino; however, these areas also provide institutional investors with properties selling for more than $15 million. These sales are typically Class A and B apartment properties with more than 200 apartment units. Minimum initial investment returns for these areas now are in the 3% range.

2022 Apartment Market Forecast and San Bernardino Apartment Loan Economics

San Bernardino has a National Multifamily Index ranking of 14. San Bernardino holds the highest ranking in California due to very low vacancy and low rates of new construction.

Employment is up 2.3%. Employment levels near a pre-Covid level as employers add 35,000 new jobs, on top of the 55,000 new jobs created in 2021.

New construction to add 1,600 units. Apartment inventory grows by less than 1% for a third straight year. Large projects in Rancho Cucamonga and Ontario account for most of the units added in 2022.

Vacancy rates are up 20 basis points. Despite two straight years of rapid rent growth, the Inland Empire continues to be a lower cost market in the region, keeping apartment demand active. This allows vacancy to continue to stay below 2%.

Apartment rents are up 5.1%. Low vacancy rates in all property classes creates a rate of rent growth that exceeds the long-term average, increasing the average apartment rental rate to $2,075 per month in 2022.

Investment in San Bernardino apartments. Class A apartment rents jumped by roughly $500 in 2021 as conditions tightened. This and the market’s low rate of new construction are creating competition for available high-end listings.

San Bernardino apartment loan rates will start to increase in 2022 as the Federal Reserve starts raising rates to slow the rate of inflation. We will be watching to see if the San Bernardino apartment loan rate increases will affect market activity in 2022.

All data provided by Marcus and Millichap

San Bernardino Apartment Market and Trends - 2021

The Riverside-San Bernardino multifamily market outperformed almost every major apartment market during the COVID-19 pandemic. During the 12 months ending in June 2021, the vacancy rate decreased 200 basis points to below 2 percent and the market posted the nation’s second fastest increase in rent. This strong performance was bolstered by the formation of about 26,300 households in the area. More people sought lower housing costs in the region during the pandemic further increasing household formation. Additionally, it is much more difficult to become a homeowner in the Riverside- San Bernardino market in 2021. The median home price has rapidly increased by 32 percent in the past year leading many people to seek rental units. While the Inland Empire is unlikely to sustain the downward vacancy trajectory from the past year, the limited number of available rentals will position the metro to end this year as the nation’s tightest apartment market.

Employment is up in the Riverside- San Bernardino market in 2021. About 65,000 jobs have been created this year. This amounts to a gain of about 4.4 percent jobs in 2021 and a recapturing of about 70 percent of 90,800 jobs lost during the pandemic. Construction of new apartment units is down in the market in 2021. Only around 1,400 new units will be completed this year. This trails the prior five-year average by about 200 units. Vacancy is down in the Riverside- San Bernardino in 2021. The vacancy rate is expected to decrease 30 basis points. Rents are up in 2021. Rents are expected to increase 11.4 percent to an average effective rent of $1,910 in 2021.

Apartment Loan Outlook - 2021

  • 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. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.

    San Bernardino Freddie Mac Apartment loans

    San Bernardino 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.

    Freddie Mac Loan and Rate Information


    San Bernardino Fannie Mae Apartment loans

    The San Bernardino Fannie Mae multifamily loan platform is one the leading sources of capital for San Bernardino 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).

    Fannie Mae Loan and Rate Information


    San Bernardino FHA Multifamily Loans

    FHA 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 FHA will underwrite the loan in order to provide the insurance. There are two primary types of FHA insured loans that multifamily investors can take advantage of.

    Learn More About FHA Multifamily Loans


    San Bernardino HUD Multifamily Loans

    HUD 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.

    Learn More About HUD Multifamily Loans


    San Bernardino Apartment Loans 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 Bernardino 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 Bernardino Apartment Loans

    Select Commercial provides apartment loans throughout San Bernardino, California including, but not limited to, the areas below.


    Del Rosa, Delmann Heights, Devore, Garden Park, Muscoy, North Loma Linda, North Norton, Northpark, Rana, Rialto Bench, University Heights, Valencia, Valley Gardens, Verdemont, Ward 1, Ward 2, Ward 3, Ward 4, Ward 5, Ward 6, Ward 7, Warm Springs, West Side.