San Francisco Apartment Loans
$1,000,000 Minimum

San Francisco Apartment Loan Rates - Rates updated March 8th, 2021

San Francisco Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
5 Year Fixed Rates 2.68% Up to 80% Get Free Quote
7 Year Fixed Rates 2.78% Up to 80% Get Free Quote
10 Year Fixed Rates 2.94% Up to 80% Get Free Quote
San Francisco Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
5 Year Fixed Rates 3.35% Up to 80% Get Free Quote
7 Year Fixed Rates 3.36% Up to 80% Get Free Quote
10 Year Fixed Rates 3.37% Up to 80% Get Free Quote
San Francisco Apartment Building San Francisco
Apartment Loan

Select Commercial has excellent San Francisco apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of San Francisco. 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 Francisco 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 Francisco 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.

San Francisco Apartment Loan Benefits

San Francisco Apartment loan rates start as low as 2.94% (as of March 8th, 2021)
• No upfront application or processing fees 
• Simplified application process 
• Up to 80% LTV on apartment financing 
• Terms and amortizations up to 30 years 
• Apartment 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!"


San Francisco Apartment Loan Types We Serve

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

San Francisco Multifamily Loan Information

San Francisco Economic Trends San Francisco Economic Trends

Household Income Growth Powering Class A Apartment Segment; Steady Supply Additions Outpacing Rental Demand

Builders stay active, keeping pace of multifamily development far above last cycle. Apartment construction in San Francisco will remain historically elevated in 2020 as 3,600 multifamily units are set for delivery, with developers focusing heavily on the Mission District and SoMa areas. This cycle’s annual average completions are nearly 4,000 apartment units, more than double that of the previous cycle as builders capitalize on the area’s growing renter pool and exceptional economic growth. San Francisco will lead the nation in household income growth this year, rising 5.4 percent to $132,300, fueled by the unwavering creation of high-wage jobs. Residents taking these jobs will continue to help fill the influx of new luxury apartments, where the average effective rent hovers around $4,000 per month. Over the past five years, Class A multifamily assets have led the market in rent growth, climbing 21 percent, while the Class B and C apartment segments posted 14 percent and 18 percent gains, respectively. Investors looking to purchase multifamily property in the San Francisco market should definitely look into taking out an apartment loan to finance their acquisition.

Buyers find high-yield opportunities in core pockets. Apartment investment in San Francisco remains strong as dollar volume totaled $3.7 billion during the past 12 months, up 75 percent from the previous period. Multifamily assets near major transit routes throughout Burlingame, Millbrae and San Bruno continue to attract a variety of local buyers, netting cap rates in the upper-3 percent band and purchasing apartment units for roughly $480,000 each — both aligned with market averages. Investors seeking higher returns scoured the Civic Center and Tenderloin neighborhoods, where yields can reach the mid-4 percent range. Similar cap rates may be found in the Mission District area as many investors home in on value-add multifamily properties, seeking to renovate them to more closely compete with nearby luxury rentals. While investor interest in San Francisco remains robust, the recently implemented rent-control bill could impact deal flow in the coming months as it puts ceilings on rent growth, potentially affecting some apartment properties. San Francisco is a great market for investors to finance their next apartment purchase with a multifamily loan.

2020 San Francisco Apartment Market Forecast

San Francisco Completions vs. Absorption San Francisco Completions vs. Absorption

The San Francisco National Multifamily Index Rank is at18, down 3 places. Rising vacancy and constrained rent growth placed downward pressure on San Francisco in the 2020 NMI.

Employment in San Francisco is up 2.5%. Hiring activity will be restrained this year as the market’s unemployment rate hovers around 2 percent. Just 30,000 jobs will be created this year, after the addition of 40,000 in 2019.

Construction in San Francisco is expected to exceed 3,600 apartment units. Deliveries will decrease by 700 units relative to 2019, but they will remain near alignment with this cycle’s annual average.

Vacancy in San Francisco is up 60 bps. Net absorption of just 2,100 apartments will support a substantial vacancy increase, driving the rate up to 4.5 percent.

Rent in San Francisco is up 3.2%. Rent growth will sustain its steady clip in 2020 as the average effective rent climbs to $3,027 per month. Last year, the market witnessed a 3.8 percent boost.

Investment opportunities in San Francisco remain strong for those looking to finance their next purchase with an apartment loan. Buyers will continue to invest in San Francisco’s transitioning neighborhoods located near large employers, where cap rates up to 50 basis points above the market average can be found. We highly recommend any investors looking to buy in the San Francisco market to reach out to us regarding a multifamily loan.

Data provided by Marcus & Millichap.

Apartment Loan Trends in 2020

San Francisco Vacancy and Rents San Francisco Vacancy and Rents

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.

What Happened with Apartment Loans in 2019

San Francisco Sales Trends San Francisco Sales Trends

The multifamily market ended the 2019 year on a high note. Despite increased levels of new units entering the market, the apartment sector maintained strong and steady growth throughout the year. Vacancy rates throughout the country remained fairly stable, easing investors’ concerns of a significant decline in occupancy due to the high sum of multifamily units delivered. Furthermore, rent growth on the national and metropolitan levels remained healthy throughout the year. While 2019 rent growth was more modest than 2018, it was in line with 2016 and 2017 levels and remained above the national historic average of 3.4%. Based on data provided by the U.S. Census Bureau, multifamily completions increased slightly in 2019 when compared with 2018. The data also show that reported permit growth has increased 3% and starts are up 2%. Although 2019 data is not yet fully complete, these metrics suggest that the supply will remain elevated over the next few years. In terms of multifamily mortgage origination, the most up to date information has surpassed expectations. Mortgage Bankers Association reported that the 2018 mortgage volume came in at about $339 billion, an increase of 18.9% from 2017. While the actual 2019 numbers will not be available until later this year, experts estimate that due to solid fundamentals, low interest rates and heightened demand for multifamily investments, the total origination volume last year was about $369 billion.

The 2019 economy thrived overall. Throughout the year 2.1 million jobs were added which were in line with 2017 number (although it fell short of the 2018 total of 2.7 million). The unemployment rate also continued to decrease in 2019 as it went down 50 basis points to 3.5% at the end of the year. This number matched the lowest unemployment rate in fifty years. The labor market heavily supported increased salaries, as indicated by the 2.8% annual growth in the Employment Cost Index as of September of 2019. While these gains were below the expected amount for a market with such a low unemployment rate they were above the average for the past decade. At the beginning of the year many investors were concerned due to expectations of a recession. There were many indicators that supported this concern such as inverted two and ten year yield curves, an unanticipated rise in the June unemployment rate of ten basis points, an unstable stock market and slowed job growth. However, during the third and fourth quarters of 2019, the economy improved as job growth rose, the unemployment rate fell. This economic improvement has had a clear impact on the multifamily market as more investors are feeling bullish on putting their money into this asset class.

San Francisco 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 Apartment Loan (Small)

Fannie Mae Apartment Loan (Large)

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 Apartment Loan

Freddie Mac is another government agency that provides 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.

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:

  • 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 Francisco Apartment Building Loans

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


Sea Cliff • Miraloma Park • Fort Mason • Russian Hill • Presidio Heights • Merced Heights • Golden Gate Park • Inner Sunset • Ocean Beach • Chinatown • Laurel Heights • Monterey Heights • Saint Francis Wood • Buena Vista • Downtown • Presidio • Fort Mason • Embarcadero • Cow Hollow • North Beach