Apartment Loan in

San Jose

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Apartment Loan in San Jose:

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. Call for great rates for an apartment loan in San Jose. Caffrey & Company LLC has a special focus on San Jose apartment loans.  The most attractive, non-recourse loan 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 the value (Over $7 million leverage up to 85% is available) you are at the right place.  These specialized apartment loan products are available in San Jose suburbs including Sunnyvale and Santa Clara.

Let’s take a look at the demand for San Jose’s multifamily market as of the second quater of 2024.  All indications show positive signs for the apartment market in San Jose, California.

  1. The tech sector in San Jose experienced layoffs, but employment growth in healthcare, entertainment, and local government sectors is supporting household formation and rental demand.
  2. Vacancy rates fell in Santa Clara and North Sunnyvale, indicating positive momentum for the 3,900 apartments currently under construction in these areas.
  3. Limited construction in Central San Jose and South Sunnyvale is expected to improve property performance in these submarkets.
  4. Vacancy rates in South Sunnyvale-Cupertino and Central San Jose are stabilizing, directing renters to existing units in these areas.
  5. The Mountain View-Palo Alto-Los Altos area may benefit from less new supply pressure, although vacancy rates have increased over the past year.
  6. The mean number of apartment completions per year from 2014-2019 was 3,200 rentals, and this year’s overall deliveries are expected to pick up.
  7. The metro-wide vacancy rate is projected to advance to 4.8 percent by December, with net absorption improving and rent growth expected to resume.
  8. Employment in the metro is set to increase modestly in 2024, with the employment base already up by 0.3 percent in the first three months of the year.
  9. The average effective rent is forecasted to rise modestly to $3,036 per month by year-end.

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 apartment building loans in San Jose.  Therefore, this will help to achieve the best pricing and loan terms for your multifamily building or commercial real estate investment.

Free Loan Quote for Multifamily Loan in San Jose:

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 San Jose 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.

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 San Jose.  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 California 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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