Apartment Loan

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Loans for Apartments:

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 commercial and multifamily loans.  Caffrey & Company LLC has a special focus in providing a Detroit apartment loan.  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 value (Over $5 million leverage up to 83% to 85% is available) you are at the right place.

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 a Detroit apartment loan.  Therefore, this will help to achieve the best pricing and loan terms for commercial real estate investment.  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, 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 for 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.

Detroit Multifamily Market Rebound:

The Detroit-Warren metro area’s apartment market performed admirably amid a 25.5% dive in employment from January to May 2020 and the subsequent 17.7% rebound in payrolls by  December 2020. In this environment, apartment operators managed to lift average monthly effective rent 0.9% year over year to $1,024 in the fourth quarter. The elevated number of deliveries in 2020 dominated leasing activity, however, resulting in a 30-basis-point annual reduction in occupancy to a still-healthy 96.4% by year-end. The mass exodus of renters from some inner cities across the U.S. was not present in Detroit’s urban core. Occupancy in the Downtown/Midtown/Rivertown submarket dipped only 20 basis points since the beginning of 2020. In 2021, inner-core apartment communities will face competition, however, from the addition of more than 950 new apartments nearby, over 900 new units delivered in the desirable, lower-rent Troy/Rochester Hills submarket, and from the perennial alternatives of single-family renting and homeownership in the suburbs. Meanwhile, continued economic recovery is anticipated in the metro area. Over
the near term and beyond, Ford Motor Company plans to hire thousands of new employees at its expanded Dearborn campus and its Innovation Campus in Corktown. At Fiat Chrysler  Automobiles, more than 6,300 new jobs will be created among its Detroit Mack Facility and its Warren Truck Assembly Plant. These and other economic developments are expected to lift  metrowide apartment demand, and by extension, occupancy to 96.5% by December 2021. Average monthly effective rent is projected to reach $1,060, a 3.5% annual increase

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:   Apartment Loan Interest Rates.

Keep Caffrey & Company in mind when searching for a Michigan 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:, 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
[email protected]