Washington DC Apartment Loans and Multifamily Financing $1,000,000+

Washington DC 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
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 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

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

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.

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.

Apartment Financing with Fannie Mae (FNMA)

Fannie Mae’s multifamily lending 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).

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.

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.

Washington DC Multifamily Loan Information

Developers Add More Units to Capital Riverfront; Trade Velocity Ascends in Maryland and D.C.

Class C apartments drive rent growth as elevated completions raise vacancy. Construction cranes remain a mainstay of the District skyline as the development pipeline for the greater D.C. metro area expands to a five-year high in 2019. The focal points of construction are shifting from submarkets such as Central D.C. and Tysons Corner to others including East Alexandria and North Arlington. The number of upcoming arrivals is also accelerating along the Capital Riverfront and in downtown Silver Spring. The greater number of openings will weigh mildly on vacancy in the short term. Amazon’s expansion into Crystal City will improve demand for top-tier apartments in the submarket as the company begins to hire for its new headquarters. High-end rentals are rapidly leasing in Navy Yard as well, but in other areas with numerous completions, Class A concession use is rising. These leasing incentives will slow growth in overall effective rents this year. Above-market appreciation will occur primarily among Class C apartments, as vacancy for these rentals falls below 1 percent in some parts of D.C. and Maryland.

Investment activity continues to grow as more older properties change hands. Transaction velocity in Washington, D.C., set a new record in 2018 as sale prices began to recede from the cycle-high achieved two years earlier. Part of this dip is driven by more deals for Class B properties, particularly in Maryland neighborhoods around Joint Base Andrews. A concentrated number of Class C assets changed hands just to the northwest in Anacostia. Composed of largely older supply, new revitalization efforts and retail openings pave the way for investors to reposition assets and add value. Higher yields are an added incentive, as cap rates here range 100 basis points or more above the market’s average initial return in the low-5 percent zone. Investors interested in acquiring assets in areas where long-term rental demand is likely to rise may look around Amazon’s planned developments in Crystal and Pentagon cities as well as nearby Arlington and Alexandria.

2019 Washington DC Apartment Market Forecast

National Multifamily Index rank of 29, up 3 places.  Washington DC, inches up three slots, remaining in the bottom half of this year’s Index.

Employment in Washington DC is up 1.3%.  Metro employers will create 42,000 jobs this year, led by hiring in the professional and business services sector.

Construction of apartments in Washington DC expected to number 14,400.  Deliveries will reach a five-year high in 2019 as construction expands in key submarkets across the market. Arrivals are picking up the most in Silver Spring, an affordable alternative to the District.

Vacancy in Washington DC multifamily is up 20 basis points.  Elevated construction activity will nudge the metro-wide vacancy rate up to 4.6 percent. Last year vacancy fell 60 basis points.

Washington DC apartment rents up 1.9%.  The average effective rent will advance to $1,760 per month following a 3.0 percent growth rate in 2018.

Investment in Washington DC apartments is good.  Investors in the $20 million and above tranche are predominantly acquiring assets in northern Virginia and Maryland, where entry costs are lower and yields are higher than in D.C.

Data provided by Marcus & Millichap

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