Apartment Loan in

Austin

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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.

Is the Austin Apartment Market is good shape?

Austin has seen a massive influx of new residents in the last decade, leading to a surge in demand for housing, especially among the 20 to 34 age bracket, which tends to rent. This has prompted a heightened construction of new apartments, with 6 percent of all new completions in the U.S. expected to be in Austin this year. However, this increase in supply has caused a short-term decrease in rents and high vacancy rates in the first quarter of 2024. Despite this, rents are expected to start recovering, and the number of occupied multifamily units is anticipated to reach a record high by the end of the year.

The development in Austin is largely aligning with its population growth, with around 2,200 new units expected to be added to downtown Austin in 2024. Additionally, the suburbs, particularly areas like Round Rock-Georgetown, are experiencing high construction activity in preparation for sustained population growth. Amazon’s plan to build a second delivery station in Round Rock this year is a clear indicator of this trend.

Looking ahead, Austin is expected to have the largest increase in local inventory this year of any major metro, at 8.5 percent. Despite this, net absorption has not kept up with construction, leading to an expected vacancy rate of 8.4 percent by the end of 2024. However, the average effective rent is forecasted to regain upward momentum, reaching $1,602 per month by December, which is significantly higher than nearby cities like San Antonio and Houston.

In terms of employment, Austin is projected to have one of the top five fastest-growing employment bases in 2024. Total employment is expected to expand by 2.3 percent, driven by 13,500 new positions in traditional office-using sectors.

Overall, Austin’s multifamily housing market is experiencing substantial changes due to the city’s rapid population growth. While short-term challenges exist, the long-term outlook for the market appears promising, with the potential for a strong recovery in rents and continued development to accommodate the growing demand for housing.

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.

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: [email protected]


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
[email protected]
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