Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
San Jose, California
San Jose Apartment Loans in 2026
Select Commercial specializes in San Jose 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 California apartment loans; for loans over $6 million, see San Jose multifamily loans. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in San Jose
San Jose apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See California apartment loans.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
San Jose 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 San Jose Apartment Loan Programs
As a broker, we compare every program to find your best-fit San Jose 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 San Jose multifamily loans.
2026 San Jose Apartment Loan Market: Historically Low Vacancy and a Delivery Plunge Support Top Tier Rent Growth
San Jose enters 2026 with one of the tightest apartment backdrops in the country, supported by limited land availability, high home prices, and a sharp drop in new deliveries. For borrowers comparing apartment building loans, the fundamentals behind a strong San Jose apartment loan remain the focus: employment trends, the pace of new supply, vacancy direction, and rent momentum across Silicon Valley.
Employment
Despite a fourth straight year of white-collar job losses, the expected 2026 employment decline is small. San Jose is projected to shed only about 2,000 jobs on net, roughly -0.2%, which helps keep renter demand from breaking down even if office-using hiring stays uneven.
Construction and supply
New supply is expected to be extremely limited in 2026. About 500 units are projected to deliver, and inventory growth near 0.3% ranks among the lowest of all major U.S. markets. This delivery plunge provides an additional tailwind for a San Jose apartment building loan tied to stabilized assets.
Vacancy
Vacancy is projected to improve by about 20 bps in 2026, ending near 3.5%. That would be the second lowest level the metro has seen in 20 years, just 10 basis points above the 2021 trough. Tight occupancy supports conservative vacancy assumptions for San Jose apartment loans.
Rent trend
Average monthly rent is projected to climb to about $3,438 in 2026, the highest level in the nation. Rent growth is projected near +4.4%, leading all major U.S. markets and substantially outpacing the national pace. For borrowers sizing a San Jose apartment loan, this supports stronger income assumptions in a market with limited new supply.
2026 San Jose forecast at a glance:
- Employment: About -2,000 jobs projected in 2026 (approximately -0.2%).
- Construction: About 500 units projected for delivery, with inventory growth near 0.3%.
- Vacancy: Vacancy projected near 3.5%, improving by roughly 20 bps.
- Rent: Average monthly rent projected near $3,438, up about 4.4%.
San Jose Multifamily Loans (Over $6 Million)
For larger San Jose 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 San Jose 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.
San Jose Apartment Loan Types We Serve
Whether you are purchasing or refinancing a San Jose 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 San Jose
As a full-service commercial mortgage broker, we arrange San Jose financing across every major property and loan type:
We consider commercial loan requests of all sizes, beginning at $1,500,000.
San Jose Neighborhoods We Serve
Select Commercial provides apartment loans throughout San Jose, California and the surrounding area, including:
- Willow Glen
- North San Jose
- East San Jose
- Silver Creek Valley
- West San Jose
- Fairgrounds
- Downtown
- Burbank
- Berryessa
- Blossom Valley
- North Valley
- Almaden Valley
- Cambrian
- Alum Rock
- Rose Garden
- Evergreen
- Edenvale
- Santa Teresa
For other cities in the state, see California apartment loans.
Nearby Apartment Loan Markets
We finance apartment buildings nationwide. Explore related markets:
Los Angeles · Sacramento · Lancaster · Stockton · Long Beach · Oakland · Pasadena · Riverside · San Bernardino · San Diego · San Francisco · Concord · Fresno · All California · Other U.S. cities
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 San Jose Apartment Loan Quote
No cost, no obligation. Written answers within 48 hours on San Jose 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