Apartment Loan in


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Apartment Loan in Austin:

Since April of 2000 Caffrey & Company LLC has been helping real estate investor’s nationwide find the best loan product for commercial real estate investment properties. Call for great rates for an apartment loan in Austin. Caffrey & Company LLC has a special focus in Austin apartment loans.  The most attractive, non-recourse loans terms start at $1,000,000 for multifamily properties.  Therefore, if you are looking for low interest rates, a non-recourse loan up to 80% of value (Over $7 million leverage up to 85% is available) you are at the right place.  These specialized apartment loan products are available in Austin suburbs including Round Rock and Georgetown, Texas.

Multifamily Loan Underwriting:

Each loan product has unique underwriting requirements.  Above all, how the loan data is presented to the lenders can have a negative or positive impact on pricing and loan proceeds.  We offer this expert loan underwriting for an apartment building loans in Austin.  Therefore, this will help to achieve the best pricing and loan terms for your multifamily building or commercial real estate investment.

Free Loan Quote:

We encourage our clients to submit key property level data for a free loan underwriting review.  This initial loan underwriting normally takes less than one business day for us to respond with several apartment loan options for you to consider.  Here is a short list of property level data that would aid in providing a loan quote:

Required Underwriting information needed:

  • Last two years and Year-To-Date detailed Profit and Loss statements (in addition a trailing 12-month P&L is best if available) on the apartment complex.
  • Current Rent Roll
  • Brief narrative description of the property.
  • If available a few electronic photos. Or a copy of the real estate agent’s marketing package.
  • What is the purpose of the loan? Acquisition, Refinance, cash out, re-position the property (renovations).

Next, we will need to understand your investment objectives.  How much do you wish to borrower on the apartment complex?  Is this a long-term investment or short-term investment?  In other words outline your apartment loan in Austin loan request.

We understand the financing of an apartment complex is a very important component of your investment.  Therefore, we encourage our client to send us details on the property before finalizing the purchase and sale contract for an indication of the type of loan that might be available to a particular property.  We can review and provide some up-front loan options for a multifamily loan.

Fixed Rate Loan Terms are Available for Multifamily Properties:

Loan terms are available from 3-years up to 35-years (40-years for new construction on loans over $7 million).  The Apartment buildings can be Garden Style, High Rise, Age Restricted, Student Housing, Section 8 Tenants and subsidize properties.  There must be at least 5-units.  If you have several buildings all with five or more apartment units that you wish to place under one loan no problem, the buildings should be within 3 to 5-miles from the other properties for best loan terms.

How long will it take to close the Loan?

The closing process normally takes between 45 and 55 days to close a Multifamily loan in Austin.  Closing costs vary between loan products.  Before you reach for your checkbook we will provide a detailed estimate of the anticipated closing costs.   At this stage you will know the loan product, the loan terms, and the anticipated closing costs to allow you to make an informed decision before moving forward.

Market Data for the Austin Multifamily Sector:

Even with the effects of the pandemic, Austin remained a popular relocation destination for businesses and individuals, which helped underpin healthy apartment fundamentals. A big draw was the Silicon Hills as companies and organizations like XR Masters and QSAM Biosciences Inc. have already relocated to Austin in the last year, and Oracle and Tesla announced they will be moving. With net migration nearly reaching 34,500 new residents in 2020, apartment operators recorded positive net absorption in most submarkets. This carried over to the start of 2021, where net apartment absorption was positive metrowide in the first quarter.

Leasing Demand Out Striped Supply:

While apartment demand persisted, construction activity slowed as builders faced disruptions in the workforce and construction materials availability due to the pandemic. After more than 13,600 units came online in 2020, construction completed on 933 units in the first quarter of 2021. With leasing activity outpacing inventory growth, average apartment occupancy elevated 100 basis points from the close of 2020 to 89.3% in the first quarter of 2021. Apartment operators capitalized on the increase by elevating monthly effective rent 4.0% quarter over quarter to an average of $1,302.

Apartment Austin Demand Drivers:

Economic expansion fueled by corporate relocations. Robust population growth has bolstered labor availability, luring firms to the market as they consider the benefits of Texas’ business-friendly environment. Last year, 45 companies from out-of-state announced plans to relocate to the market alongside more than 100 locally based firms that voiced a desire to expand. The most notable commitment came from Tesla and work is already underway on a Gigafactory near the Austin-Bergstrom International Airport. This new plany will employ 5,000 people. Still, the leisure and hospitality sector remains beleaguered by the pandemic, down 27,400 positions annually at the end of last year. The vaccine rollout should help recover more of these jobs in 2021, allowing the Austin economy to accelerate into a new growth cycle. Fundamentals pressured by development pace. Construction will induce additional headwinds this year despite sturdy demand drivers. Vacant stock in the market grew by more than 4,600 units last year and this overhang will be exacerbated by a sizable pipeline. Twelve of the metro’s 13 submarkets will add at least 500 units to inventory in 2021, led by East Austin where 3,000 doors are slated to finalize. The Tesla Gigafactory should eventually underpin rental demand in the area, but East Austin faces near-term challenges after the submarket’s vacancy rate jumped 260 basis points last year to 8.0 percent. Metrowide, displacement from the winter storm damage could also push up vacancy in 2021.We see total inventory towards the end of 2019 for apartment units near 247,000 units, last year absorption topped 7,000 units with nearly 6,300 new units coming on-line.  Overall occupancy remained healthy at 95% with rent increase a little over 5% for the previous year brining average monthly rents to $1,280 +/-.

In conclusion you find details on several loan products by following these links: Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products.  Want more details and sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site:   Multifamily Loan Interest Rates.

Keep Caffrey & Company in mind when searching for a Texas lender for apartment loans. Have a question please call:  Mike Caffrey (913) 402-7077 or email: Mike@CaffreyLoans.com

On our web site you can read about specific loan products: www.caffreyloans.com/loan-products, offered by Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products. Want more details on sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site: www.caffreyloans.com/apartment-loans.

Have a question please contact
Mike Caffrey
Telephone: (913) 402-7077