Multifamily Construction Loan Rates - Lowest to Highest
Loan Rates as of 01/21/2026| Loan Type | Rates |
|---|---|
FHA Commercial Construction Loan (Multifamily) Based on the 10 year US Treasury Rate. Rate is fixed for the life of the construction loan and also for the full 40 years for the permanent loan. |
6.19% |
Regional Bank Commercial Construction Loan Based on the 30 day SOFR rate. Rate changes monthly |
6.25 – 6.75% |
National Bank Commercial Construction Loan Based on the 30 day SOFR rate. Rate changes monthly |
6.50 - 7.00% |
Life Company Commercial Construction Loan Based on the 30 day SOFR rate. Rate changes monthly |
6.75 – 7.25% |
Community Bank Commercial Construction Loan Based on Prime Rate.Rate changes has prime rate changes |
8.00 – 8.50% |
Private Debt Fund Construction Loan |
8.25 – 8.75% |
Hard Money Commercial Construction Loan |
9.99 - 12.00% |
7 Top Multifamily/Apartment Construction Loans
1. HUD/FHA lenders have the best program because they lend the most at 87% Loan to Cost (LTC) are non-recouse loans and have the lowest rates tied to the 10-year treasury. They require experience, but are negotiable on borrower financial strength. (Program Details) Install a button on list of bullet points
2. Life Company Lenders have non-recourse loans and are excellent for borrowers with strong experience and a net worth more than twice the loan size and liquidity equal to more than the loan. They have very low rates tied to SOFR, and many options for large markets. They only lend 70 -75% LTC.
3. National Bank Lenders have the next best rates tied to SOFR, can offer flexible terms, and go up to 75% LTC. They require borrowers to have a net worth of twice the size of the loan, strong experience and liquidity equal to the size of the loan. They prefer large and medium-sized markets unless they have a branch in your town.
4. Regional Bank Lenders lend more than National Banks at 80% LTC, and require a net worth equal to the size of the loan and liquidity equal to half the size of the loan amount. They can usually lend in neighboring states to a branch of theirs. They have higher but decent rates tied to SOFR.
5. Community Bank Lenders are the best for low experience, net worth, and liquidity. Borrowers must have excellent credit and income.
6. Credit Union Lenders require borrowers that have excellent credit and are stronger financially than community banks. They can lend up to 75% LTC, and have lower rates tied to the 10-year treasury than community banks. Some experience is needed.
7. Private Debt Fund Lenders are bridge loan lenders that come in handy if you need to close fast and have less than perfect credit. They lend up to 80% of the completed stabilized value and are negotiable on financial strength. They do however require experience of a similar size and scope development and have high rates tied to SOFR.
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FAQs About Multifamily Construction Loans
Q1: Can I use a multifamily construction loan program for 2 – 4 unit apartment projects? (click for answer)▼
Q4: Do I need experience as a developer to get multifamily construction loan financing? (click for answer)▼
Q7: Do I need to have cash left over after the closing of my multifamily construction loan? (click for answer)▼
Q8: What reports such as an appraisal do I need for multifamily construction financing? (click for answer)▼
Q9: What can I do if I do not have the experience or financial strength to get the multifamily construction loan I want: (click for answer)▼
Q10: Can I be the developer and general contractor on my multifamily construction loan? (click for answer)▼
Multifamily Construction Loan Submission List
- Executive summary highlighting the scope of the project, what you are actually building, supportive data showing your project is needed, and the experience of you and your team.
- Construction costs including hard costs, soft costs, and land value. It’s better to have a line by line itemized budget than an estimate based on square footage.
- Land value – what you paid for it and when, what you owe on it and what its current value is.
- Zoning of the land and how far you are with obtaining entitlements
- Site plan, floor plans and elevation drawings
- Conceptual Design drawing if you have one
- A brochure or website for your general contractor and architect, highlighting the projects they have built and their qualifications
- A brochure or website for your property management company
- Bio’s or resumes for yourself and other key principals showing multifamily ownership and construction experience.
- You and your partner’s personal financial statements 4 Year Pro-forma showing the projected net operating income from day one of lease up through the first 4 years of operations Pro-forma rent roll
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HUD Loans are one of the best options with the current level of interest rates. For a complete guide to HUD Multifamily Loans please go here: