Virginia Apartment Loans and Multifamily Financing $1,000,000+

Virginia Apartment Loan Rates - Rates updated February 17th, 2020

Multifamily Loan Product Rates (start as low as) LTV Amortization
5 Year Fixed 3.52% Up to 80% Up to 30 years
7 Year Fixed 3.68% Up to 80% Up to 30 years
10 Year Fixed 3.84% Up to 80% Up to 30 years

Select Commercial has excellent apartment building loan and multifamily loan products and options available for owners and purchasers of multi-family and apartment properties throughout the state of Virginia. 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. Virginia is one of the states that we consider to be a premium market for apartment building loans 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 VA 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.

Virginia Apartment Loan Benefits

Virginia Apartment loan rates start as low as 3.52% (as of February 17th, 2020)
• No upfront application or processing fees 
• Simplified application process 
• Up to 80% LTV on apartment financing 
• Terms and amortizations up to 30 years 
• Loans for purchase and refinance, including cash-out 
• 24 hour written pre-approvals with no cost and no obligation

Virginia Apartment Loan Types We Serve

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

Multifamily Loan Outlook - 2020

Across the country, experts predict that the multifamily market should continue with its strong performance into 2020. There are several crucial factors that support this favorable prediction, a few of which are delineated below. While there are also a variety of political and financial conditions present that combine to add a level of uncertainty to the market, the positives are anticipated to outweigh the negatives for investors in the multifamily sector in 2020. Firstly, healthy and viable labor markets are expected to continue to drive the demand for multifamily housing. Continued growth in employment rates is expected to fuel new multifamily household creation. In 2019, employers were on pace to create over 2 million net new jobs, making it the ninth straight year where employment growth came in at or above 2 million jobs. Secondly, apartment rents have been rising incredibly fast over the past several years. Late in 2019, California passed rent control legislation. However, as the law allows for annual rent increases of about five percent, rent is still expected to increase significantly. Some of the realities driving rents higher in top markets include increases demand for multifamily housing, rising land and construction costs and an influx of higher-end, luxury projects coming to the market. With these conditions in place, landlords are going to find themselves making more in rental income in 2020.

Experts further predict that buying and developing in the suburbs will remain the best bet for multifamily investors in 2020. They expect suburban multifamily growth to outperform urban as it maintains lower vacancy rates and achieves higher rent growth. According to CBRE Research, the top four markets for multifamily performance in the coming year are Phoenix, Atlanta, Austin and Boston. These four metros are very high-growth cities when considering metrics such as multifamily demand, population and employment. Additionally, construction and development are very active in these markets. Smaller metros and cities should also maintain prominence in the considerations of investors and developers. While the risk of overbuilding may be higher in smaller markets, there are several markets that appear to be primed for exceptional multifamily performance. Many smaller metros are undergoing a significant development of their urban centers, thereby improving quality of life and helping them to retain their employment base. Of these smaller markets, seven metros had 4% or higher rent growth as of the third quarter of 2019 and are incredibly likely candidates for outperformance in 2020: Albuquerque, Birmingham, Colorado Springs, Dayton, Greensboro, Memphis, and Tucson.

Virginia 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.

Virginia Apartment Financing with Fannie Mae (FNMA)

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 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).

Virginia Apartment Mortgages with Freddie Mac (FHLMC)

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 market. Freddie Mac has a very aggressive program for small balance 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.

Virginia 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:

  • 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 loan requests of all sizes, beginning at $1,000,000. Click here to get started with a free loan quote.

Virginia Multifamily Loan Information and Economic Overview

Investors looking for a potential big return on their money would benefit by looking into procuring commercial mortgage financing in Virginia. The average value of commercial real estate properties in the state of Virginia is about $785,000 with a median sale prices of above $271,000. Over the last two years there have been about 53,000 commercial sales; slightly more than 28,000 of them have sold for greater than $250,000, about 6,300 sales valued at over $1,000,000, and 1,000 sales were appraised at over $10,000,000. The average price per square foot of commercial real estate properties in the state is $13 while the average lot size of Virginia is 38,930 square feet (45% above the United States average). There are about 901,000 commercial real estate properties in Virginia, 193% below the country’s average, with a total acreage of about 7.5 million acres. In terms of commercial mortgage financing, there are about 443,000 mortgages for commercial real estate properties throughout the state of Virginia. The average value of these commercial mortgages is about $6 million, 14% above the United States average.

The Richmond multifamily market seems very strong in 2019 and looks like a great place for investors to look into receiving an apartment loan. Although employment gains in Richmond–Tidewater started to decline in the middle of last year, the multifamily market was not really negatively impacted. Rents outperformed the national average, increasing 3.4 percent year-over-year as of March and occupancy in stabilized properties actually inched up 10 basis points, to 95 percent, over 12 months. While the market is still growing productively, with 4,315 new multifamily units underway as of March and 2,520, supply is bound to partially diminish rent growth. The average Richmond rent is estimated to advance 2.3 percent this year. Similar to the recent increase of multifamily complexes being built in Richmond, Chesterfield is having a boom of its own. A bunch of new multifamily developments are under construction and in planning. Many of these new complexes are gathered on the western end of the county and are part of or next to larger mixed-use buildings. The Richmond Times-Dispatch has reported that a two-level penthouse at The Jane at Moore’s Lake apartments in Chesterfield County has been leased for more than $3,000 a month. This apartment complex is located in Chester which is just south of Richmond. Those looking to invest in this lucrative market should most certainly look into procuring an apartment loan to help make a purchase.

In Northern Virginia, there are an influx of investors looking for commercial mortgage loans in order to break into the market. Property listings that had been sitting on the market with little interest are suddenly being fought over by multiple buyers. Much of this buzz has been caused by west coast tech companies such as Amazon and Apple, who both announced that they are in the process of setting up east coast headquarters in Virginia. These developments will significantly increase the number of jobs, as 50,000 new high paying jobs are estimated to be added over in the next few years. It has already been announced that Amazon HQ2 will be coming to Crystal City. With this new increase in demand for both housing and commercial space, prices are anticipated to rise steeply this year. The day that Amazon announced HQ2 two luxurious condo listings immediately increased their list price by 30 thousand dollars. In fact, with this anticipation of much higher demand in the area many experts think that we might see record breaking price increases in 2019 in Virginia commercial real estate. Thus, smart investors may find Northern Virginia a terrific place to look into commercial mortgage financing and apartment loans.

Virginia Apartment Loans

Select Commercial provides apartment loans and multifamily loans throughout the state of Virginia including but not limited to the areas below.

Virginia Beach • NEast Hampton • Norfolk • Alexandria • Chesapeake • Hampton • Arlington • Richmond • Newport News