Apartment Loan Rates and Financing Options

When it comes to financing an apartment investment, there are a variety of options. Some of the most popular options include bank, agency, and HUD/FHA loans. Others include life companies, conduit lenders, and hard money lenders.


Apartment loan rates are higher than they’ve been in years, and will likely continue to rise. But there are still a few good deals out there.

Fannie Mae

Fannie Mae is a government-sponsored enterprise that helps expand liquidity in the mortgage markets. Its mission is to provide stable access to funds for thousands of banks, savings and loans, and mortgage companies. It also provides the necessary funding to help home buyers. Its role is vital to the nation’s housing finance system.

In its heyday in the 1980s, the organization was an enormous publicly-traded company that listed on the New York Stock Exchange. But, the financial crisis of 2008 brought about a collapse in its balance sheet that led to its delisting from the NYSE and its subsequent conservatorship by the Federal Housing Finance Agency.

The current status of Fannie Mae is still in flux. It is in the process of regaining its footing and repairing its finances. However, the agency is still under the watchful eye of the FHFA. Its conservatorship is expected to end in 2026 or sooner.

Apartment loan rates for multifamily properties backed by Fannie Mae are among the lowest in America. These rates are typically fixed from 5 to 30 years. They depend on the borrower’s DCSR and other underwriting factors, including location and experience. However, Fannie Mae is not immune to the impact of unethical lending practices that contributed to the subprime mortgage crisis. This is why it’s important to understand the fundamentals of Fannie Mae before investing in these loans.

Freddie Mac

The Federal Housing Loan Mortgage Corporation (FHLMC) is a government-sponsored enterprise that works to reduce the cost of mortgage financing for American homeowners and commercial property investors. Freddie Mac and Fannie Mae are the largest providers of multifamily financing in the United States. These two companies buy mortgages from lenders, either holding them in their own portfolios or packaging them into mortgage-backed securities that can be sold to investors. In this way, they ensure that there is a continuous flow of mortgage capital for homebuyers and real estate investors.

Freddie Mac has a number of different lending programs for multiple asset classes, including affordable and market-rate multifamily properties. These loans offer LTVs up to 80%, are non-recourse, and have flexible terms and amortizations. They also offer the opportunity to finance value add renovations. In addition, Freddie Mac offers several programs for specific asset classes such as student housing, seniors housing, and manufactured homes.

Despite the fact that many Americans may not know what Freddie Mac is or what it does, it has a significant impact on the country’s housing markets. Prior to the creation of Freddie Mac and Fannie Mae, there was very little regulation or specific stimuli working to maintain liquidity and stability within the retail housing sector. These GSEs have played a critical role in the ongoing development of the national economy.


While FHA was founded separately from HUD, they share some of the same objectives. The FHA primarily deals with residential lending for primary residences, while HUD oversees multifamily housing programs. They both set guidelines and provide insurance for apartment loans of five units or more.

The benefits of HUD/FHA loan rates include lower interest rates and less strict borrower requirements. Typically, these loans require a smaller down payment and credit score than other loan options, and they allow for co-borrowers and gift funds to be used to qualify. They also have shorter amortization periods than other commercial mortgages. In addition, these loans are assumable with FHA and lender approval. This feature allows borrowers to sell their property and transfer the remaining balance of their loan without incurring prepayment penalties or having to pay their mortgage.

However, a few hurdles must be overcome when working with a HUD/FHA lender. One of the most significant is that HUD requires annual financial audits, which can add to operating expenses and slow down the origination process. This can be a big deal for investors who are trying to get the best apartment loan rates. Another issue is that HUD 223f and 221d4 loans may take longer to close than other financing options, especially in the case of new construction or substantial rehabilitation.


Blake Janover is an entrepreneur with over 15 years of experience in real estate capital markets. He has overseen the underwriting and origination of billions in multifamily and commercial real estate loans. He is also the Founder and CEO of Janover Ventures, a commercial loan marketplace that connects real estate investors with lenders. His company specializes in connecting multifamily, commercial real estate, and construction loans.

Blake noticed that borrowers in the multifamily and CRE space didn’t know about their financing options, which could limit their financial growth. He believed that Janover Ventures could solve this problem by educating borrowers about their options and matching them with the right lender. He started by buying relevant domains and building websites with a focus on search engine optimization. These sites now have high ranking organic traffic.

The company’s suite of websites includes sites for multifamily loans, commercial property loans, CMBS loans, and HUD loans. The sites also offer educational content and a proprietary technology system that matches borrowers and lenders based on scoring/distribution algorithms. The site has more than 1 million unique website visitors per month, which is mostly organic traffic.

The company is a member of Forbes Real Estate Council, an On Deck Proptech and Scale Fellow and is enrolled in Harvard Business School’s Owner/President Management Program (OPM) 60 cohort. Its clients include a variety of public and private companies across the country.