Apartment Loan

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Apartment Loan in Austin, Texas:

Since April of 2000 Caffrey & Company LLC has been helping real estate investors nationwide find the best loan product for commercial real estate investment properties in Austin.  Caffrey & Company LLC has a special focus in providing an Austin apartment loan.  The most attractive, non-recourse loan terms start at $1,000,000 for multifamily property loans.  Therefore, if you are looking for low interest rates, a non-recourse loan up to 80% (Over $5 million leverage up to 83% to 85% is available) for you Apartment Building Loan you are at the right place.

Loan Underwriting for the best interest rate:

Each Apartment loan product has unique underwriting requirements.  Above all, how the loan data is presented to the lenders can have a negative or positive effect on pricing and loan proceeds.  We offer this expert loan underwriting for Austin Apartment Building Loans Properties to help achieve the best pricing and loan terms for you.  Therefore, 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).
  • 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, reposition the property (renovations).

Next we will need to know your objective, 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 loan request.

We understand the financing of an apartment complex is a very important component of the 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.

Fixed Rate Loan Terms are Available Multifamily Properties:

Loan terms are available from 3-years up to 35-years (40-years for new construction on loans over $5 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 the loan.  Closing costs vary between loan products.  Before you put any funds out 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.

1Q2021 Austin Multifamily Market Report:

In 2020, 45 companies announced plans to relocate to the Austin market, with 100 companies already located in Austin expressing plans to expand.  The most significant of those companies being Tesla that has their Gigafactory that will employ 5,000 people set to be finished in 2021.  However, Austin was not immune to the pandemic.  Entering 2020, the metro witnessed an unemployment rate of 2.6 percent which rose to 12.6 percent at the height of the pandemic.  Due to the state’s relatively short lockdown period, Austin was able to recover quickly with the financial, business and professional service sectors seeing growth before the end of 2020.  Contrary to the employment, which was able to recover quickly, apartment vacancy levels struggled to recover particularly in the downtown and University submarkets.  This is a result from the University of Texas and employers allowing remote work, this resulted in a vacancy of 7.2 percent at the end of the third quarter of 2020.  With the vaccine rollout in 2021 and the tremendous growth in the various business sectors, the vacancy levels are expected to drop significantly in 2021.  The opening of the Tesla factory and other companies expanding into the Austin market is expected to fuel Class A and B asset classes as many well paid employees are anticipated renting in the area.  During 2021, the economy should return to levels higher than before the shutdown, which undoubtfully benefit the apartment vacancy levels and ability of people to pay higher rents.  While the demand is increasing throughout 2021, the amount of units delivered is still set to outpace demand, so there is still concern of vacancy throughout the metro especially in the Eastern submarkets.

By the numbers:   

In 2021, employment is expected to expand by 3.9% as 44,000 new jobs are anticipated to be created.  Apartment inventory is set to increase by an astonishing 5 percent with 12,980 new units to be completed.  Due to supply outpacing demand, vacancy is set to increase by 90 basis points as it is set to reach 7.1% in 2021.  With the high vacancy levels, the effective rent is expected to decline by 2.1% pushing the effective rent per month to $1,232.  Transaction velocity declined by 35 percent in 2020 as average sale price increase by 4 percent and average cap rate decreased by 20 basis points to around 5 percent.

In conclusion can read about specific loan products. 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:   Commercial 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:

On our web site you can read about specific 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:

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