Multifamily Mortgage Bankers and Brokers since 1997


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Commercial Construction Loan Rates

Rates as of: 12/07/2022
National Bank Commercial Construction Loan

Based on the 30 day libor rate. Rate changes monthly

5.95 – 6.00%
Life Company Commercial Construction Loan

Based on the 30 day libor rate.  Rate changes monthly

6.00 -6.76%
FHA Commercial Construction Loan (Multifamily)

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.

6.08 – 6.48%
Community Bank Commercial Construction Loan

Based on Prime Rate.Rate changes has prime rate changes

6.25 – 6.75%
Private Debt Fund Construction Loan
7.00 – 7.75%
Regional Bank Commercial Construction Loan

Based on the 30 day libor rate.  Rate changes monthly

7.25 – 7.50%
Hard Money Commercial Construction Loan
9.99 - 13.00%

Commercial Construction Loan Rates vary from around 3.49% to 12.00%, based on the lender's cost of funds. Also, the  experience, credit and financial strength of the developer and key principals on the project are all factors. Many commercial banks borrow the funds from other banking institutions over night on the Federal Funds Rate (Source: or from their own deposits. Of course, their cost of funds vary daily so they cannot fix the rate on a commercial construction loan for more than 30 days. These institutions tie their rates to the 30 day libor rate (Source: or to prime rate:


FHA Commercial Construction Loan Rates for Multifamily are partially regulated by HUD and are some of the lowest commercial construction loan rates in the country. HUD guarantees the loan which makes it possible for the lender to sell the loan on Wall Street as a Gennie Mae Bond. It is actually the bond trading firms on Wall Street that will determine the final rate which can be locked at final HUD loan approval. These rates are not only locked at loan approval for the entire term of the construction loan but for an additional 40-year on the Permanent Loan. Call one of our friendly loan specialists to get prequalified for this program.


Life companies have a lot of money to invest and have some of the lowest commercial construction loan rates available in America. However, these programs are more difficult to qualify for; they take a very experienced development team, and require financially strong sponsors. 


The best private lenders have their money in a fund already, and have the lowest rates. Private lenders that borrower their funds from a warehouse line and sell the funds at a profit will have much higher rates. Private Institutional Commercial Construction Loans are easier to qualify for and require less experience and financial strength from the developer and investors.  .   


Finally, we have hard money construction loans with rates from 9.00% to 12.00% and many points. These loans exist for developers that do not have good credit, or verifiable income on tax returns. These loans still require experience with similar size projects from the developer, general contractor, and often the investors. 


At Apartment Loan Store, and Business Loan Store, we have specialized in commercial construction loans since 1997. Please call one of our friendly loan specialists to get prequalified for your project.


By:  Terry Painter/President    Apartment Loan Store and Business Loan Store