Washington DC Apartment Loans
$1,000,000 Minimum

Washington DC Apartment Loan Rates - Rates updated September 26th, 2021

Washington DC Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 2.58% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 2.69% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 2.90% Up to 80% Get Free Quote
Washington DC Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 3.22% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 3.23% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 3.25% Up to 80% Get Free Quote
Washington DC Apartment Building Washington DC
Apartment Building

Select Commercial has excellent apartment and multifamily loan products and options available for owners and purchasers of multi-family and apartment properties throughout Washington DC. 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. Washington DC 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 Washington DC 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.

Apartment Loan Benefits

Washington DC Apartment building loan rates start as low as 2.58% (as of September 26th, 2021)
• 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

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!"


Washington DC Apartment Loan Types We Serve

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

2021 Multifamily Outlook

  • 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.

    Washington DC Multifamily Loan Information

    Washington DC Economic Trends Washington DC Economic Trends

    Multifamily Development Nudges Higher As Vacancy Reaches Cycle Low

    Elevated renter demand in Navy Yard filling newly delivered apartments. After two years of declines, Washington, D.C.’s multifamily development pipeline will expand in 2020. The focal point of apartment construction is in the Navy Yard and along the Capital South Waterfront, where more than 4,000 apartments will be completed by year end. New entertainment options, including the opening of Audi Field in 2018, have bolstered renter demand in the area. Multifamily deliveries will also rise in multiple Arlington submarkets, encouraged by the establishment in National Landing of Amazon’s second headquarters. Housing needs are expected to increase in surrounding areas moving forward, as hiring at the e-commerce giant’s new offices ramps up this year. The number of upcoming arrivals, particularly in the Navy Yard, will weigh on local vacancy in the short term, but fewer apartment additions in other parts of the market, such as Central D.C. and Downtown Silver Spring, will support an overall drop in apartment availability in 2020. Tighter vacancy is in turn sustaining rent growth, particularly among Class B multifamily units. Investors looking to purchase multifamily property in the Washington D.C market should definitely look into taking out an apartment loan to finance their acquisition.

    Investment activity expands outside the District. More multifamily properties changed hands in 2019 than during any other year so far this business cycle. Transaction velocity advanced in Northern Virginia and Suburban Maryland but moderated within the District. New corporate investment into the Pentagon/Crystal City and Potomac Yards areas likely prompted greater sales activity in nearby Arlington County and Alexandria. Apartment investors seeking higher returns at lower entry costs found opportunities in Hyattsville and Frederick County, Maryland, among other locations. Within the District of Columbia, buyers with less than $10 million in available capital continued to target potential value-add multifamily opportunities in Anacostia, where revitalization efforts are underway. Competition for apartment listings is expected to bolster the average per multifamily unit sale price further while the year begins with cap rates in the low-5 percent zone. Washington D.C is a great market for investors to finance their next apartment purchase with a multifamily loan.

    2020 Washington DC Apartment Market Forecast

    Washington DC Completions vs. Absorption Washington DC Completions vs. Absorption

    The Washington D.C National Multifamily Index Rank is 33, down 4 places. Moderated rent gains and flattened appreciation slide Washington, D.C., back in this year’s NMI.

    Employment in Washington D.C is up 1%. Employers will create 35,000 jobs this year, led by law, accounting, engineering, and administrative firms.

    Construction in Washington D.C is expected to exceed 11,600 apartment units. Deliveries will reach a three-year high in 2020 as construction expands in key submarkets across the market. Arrivals are picking up substantially in multiple Northern Virginia submarkets.

    Vacancy in Washington D.C is down 30 bps. Despite elevated construction activity, the metro wide vacancy rate will dip to 3.3 percent, its lowest value since 2005.

    Rent in Washington D.C is up 2.9%. The average effective rent will advance to $1,850 per month following a 3.4 percent growth rate in 2019.

    Investment opportunities in Washington D.C remain strong for those looking to finance their next purchase with an apartment loan. Ongoing public transit development, including an extension to the Silver Line and the planned Purple Line, may direct more investment to areas along those paths as population growth pushes residents beyond the metro core. We highly recommend any investors looking to buy in the Washington D.C market to reach out to us regarding a multifamily loan.

    Data provided by Marcus & Millichap.

    Apartment Loan Trends in 2020

    Washington DC Vacancy and Rents Washington DC 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.

    Washington DC 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 Loan and Rate Information


    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 Loan and Rate Information

    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 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.

    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. Get started with a Free Commercial Mortgage Loan Quote.

    Washington DC Multifamily Loan Information

    Multifamily Development Nudges Higher As Vacancy Reaches Cycle Low

    Elevated renter demand in Navy Yard filling newly delivered apartments. After two years of declines, Washington, D.C.’s multifamily development pipeline will expand in 2020. The focal point of apartment construction is in the Navy Yard and along the Capital South Waterfront, where more than 4,000 apartments will be completed by year end. New entertainment options, including the opening of Audi Field in 2018, have bolstered renter demand in the area. Multifamily deliveries will also rise in multiple Arlington submarkets, encouraged by the establishment in National Landing of Amazon’s second headquarters. Housing needs are expected to increase in surrounding areas moving forward, as hiring at the e-commerce giant’s new offices ramps up this year. The number of upcoming arrivals, particularly in the Navy Yard, will weigh on local vacancy in the short term, but fewer apartment additions in other parts of the market, such as Central D.C. and Downtown Silver Spring, will support an overall drop in apartment availability in 2020. Tighter vacancy is in turn sustaining rent growth, particularly among Class B multifamily units. Investors looking to purchase multifamily property in the Washington D.C market should definitely look into taking out an apartment loan to finance their acquisition.

    Investment activity expands outside the District. More multifamily properties changed hands in 2019 than during any other year so far this business cycle. Transaction velocity advanced in Northern Virginia and Suburban Maryland but moderated within the District. New corporate investment into the Pentagon/Crystal City and Potomac Yards areas likely prompted greater sales activity in nearby Arlington County and Alexandria. Apartment investors seeking higher returns at lower entry costs found opportunities in Hyattsville and Frederick County, Maryland, among other locations. Within the District of Columbia, buyers with less than $10 million in available capital continued to target potential value-add multifamily opportunities in Anacostia, where revitalization efforts are underway. Competition for apartment listings is expected to bolster the average per multifamily unit sale price further while the year begins with cap rates in the low-5 percent zone. Washington D.C is a great market for investors to finance their next apartment purchase with a multifamily loan.

    Washington DC Apartment Building Loans

    Select Commercial provides apartment loans and multifamily loans throughout Washington DC including but not limited to the areas below.


    • Adams Morgan • Fairlawn • Near Northeast • American University Park • Fairlawn • North Cleveland Park • Anacostia • Federal Triangle • North Michigan Park • Arboretum • Foggy Bottom • Observatory Circle • Barnaby Woods • Forest Hills • Park View • Barney Circle • Fort Davis • Penn Branch • Barry Farm • Fort Dupont • Penn Quarter • Bellevue • Fort Lincoln • Petworth • Benning • Fort Totten • Pleasant Hill • Benning Heights • Fort Totten • Pleasant Plains • Benning Ridge • Foxhall • Potomac Heights • Berkley • Friendship Heights • Queens Chapel • Bloomingdale • Garfield Heights • Randle Highlands • Brentwood • Gateway • Riggs Park • Brightwood • Georgetown • Riggs Park • Brightwood Park • Glover Park • River Terrace • Brookland • Good Hope • Shaw • Buena Vista • Greenway • Shaw • Burleith • Hawthorne • Shepherd Park • Burrville • Hillbrook • Sheridan Kalorama • Capitol Hill • Hillcrest • Shipley Terrace • Capitol View • Howard University • Sixteenth Street Heights • Carver Langston • Ivy City • Skyland • Cathedral Heights • Judiciary Square • Southwest Federal Center • Central Northeast • Kalorama • Southwest Waterfront • Chevy Chase • Kenilworth • Spring Valley • Chevy Chase • Kent • Stronghold • Chinatown • Kingman Park • Sursum Corda • Civic Betterment • Kingman Park • Swampoodle • Cleveland Park • Knox Hill • Takoma • Colonial Village • Langdon • Tenleytown • Colony Hill • LeDroit Park • The Palisades • Columbia Heights • Lincoln Heights • Trinidad • Congress Heights • Logan Circle • Truxton Circle • Crestwood • Manor Park • Twining • Deanwood • Marshall Heights • Wakefield • Douglass • Massachusetts Heights • Washington Highlands • Downtown • Mayfair • Wesley Heights • Dupont Circle • McLean Gardens • West End • Dupont Park • Michigan Park • Woodland • Eastland Gardens • Mount Pleasant • Woodland-Normanstone Terrace • Eckington • Mount Vernon Square • Woodley Park • Edgewood • Navy Yard • Woodridge • Fairfax Village • Naylor Gardens