Multifamily Mortgage Bankers and Brokers since 1997

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Low Rate Interest Only Apartment Perm Loan Program

Apartment Loan Store has one of the best interest only multifamily perm loan programs available in America. Interest only payments are available from 1 – 10 years depending on Loan to value, DSCR and where the property is.

Why choose this option?

Your goal is to increase monthly net income after loan payments to the maximum
Your goal is to reposition your apartment property by upgrading the units and increasing rents over time. Interest only payments can greatly lower your loan payments and thus give you additional cash to put into the property. 

How much can you save on your loan payment with interest only payments. Here is an example: You are taking out a $1,000,000 loan to buy a multifamily property. With a 4.50% rate and a 30 year amortization your monthly payments will be $5,067. Interest only payments at the same interest rate of 4.50% will be $3,750. Your loan payment will be $1,317 less with interest only or $15,805 annually.

What are the advantages of our interest only perm loan program over other programs?

  1. Lower rates than the industry average
  2. Lower Credit Score Requirement. FICO score can be as low as 650
  3. Up to a 20-year term beginning with 10 years of interest only
  4. Declining prepayment penalty
  5. No Replacement Reserves required
  6. The loan is underwritten at the start rate on the 7 and 10 year fixed, so we can usually lend you more money. 
  7. 1.20 DSCR in larger cities which means we can lend more money


Interest Only Perm Loan Program Guidelines

Loan Amount

$1,000,000 to $6,000,000

Between $6 million and $7.5 million for properties with 75 units or less in Top and Standard SBL Markets

Loan Term

Fixed-rate loan terms of 5, 7 or 10 years. Hybrid ARM loan terms of 20 years with initial 5, 7 or 10 years fixed.


Up to 30 Years. Interest-only options also available.

Minimum DSC

1.20 in Top Markets;
1.25 in Standard Markets;
1.30 in Small Markets;
1.40 in Very Small Markets.

Maximum LTV

80% in Top and Standard Markets;
75% if acquisition in Small/Very Small Markets;
70% if cash-out refinance in Small/Very Small Markets.

Interest Only DSC/LTV Thresholds

Full Term I/O

Minimum DSC 1.35 / Max LTV 65% in Top Markets;
Minimum DSC 1.40 / Max LTV 65% in Standard Markets
Minimum DSC 1.40 / Max LTV 60% in Small Markets;
Minimum DSC 1.50 / Max LTV 60% in Very Small 

Partial Term I/O

5 yr term:Minimun DSC 1.25/  Max LTV 80% 1 year I/O

7 yr term: Minimum DSC 1.25/Max LTV 80% 2 years I/O

10 yr term: Minimum DSC 1.25/Max LTV 80% 3 years I/O

*If 65% LTV or Under - Full Term Interest Only Avaiilable

Rate Structure

Fixed and hybrid ARM loan terms available.

Eligible Property

Multifamily, minimum five residential units.

Eligible Borrower

Up to $75 million – Individuals who are U.S. citizens; LPs; LLCs; SAEs; SPEs; TICs with up to 5 unrelated members; and trusts (irrevocable trusts and revocable trusts with warm body guarantor). Between $6 million and $7.5 million – Single Asset Entities

Occupancy Requirement

90% physical occupancy over the trailing 3 month period.
85% physical occupancy for the trailing 3-month average prior to Underwriting if the subject property has any of the following characteristics:
Property is recently built or renovated in a Top Market
Property is <30 units
Acquisition with all of the following:
Sophisticated acquiring sponsorship and management relative to current ownership;
Appraised occupancy and/or rents materially higher than subject’s current operations;
Subject property has not experienced volatile historical occupancy swings; and

No history of serious crime at the subject property.

Real Estate tax escrow deferred for deals with 65% LTV or less. Insurance escrow deferred. Replacement reserve escrow deferred.

Replacement Reserves

Underwritten at a minimum $200 per unit per annum.


Non-recourse with standard carve-out provisions required.

Commercial Space

Allowed up to 40% of total net rental income; no more than 40% of building’s square footage.

Required Reports

Appraisal, Properly Condition Assessment, Phase I Environmental, Zoning, Insect and Flood


Declining schedules and yield maintenance available for all loan types. Defeasance available for fixed-rate loans only. All prepayment options are open for prepayment without penalty 3 months prior to maturity.


Subject to approval and 1% fee.


Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.

Rate Lock

A  refundable application deposit (0.1% of loan amount in all markets except Top Markets) will be collected at time of rate lock. 60- to 120-day rate-lock period available.

Loan Deposit

Varies from $2,500 - $10,000.  Goes towards third party reports -  apprisal, environmental and property condition report.  Balance refunded at closing.  

Top Markets

New York-Newark-Jersey City (NY-NJ-PA), Boston-Cambridge-Newton (MANH), Washington, DC-Arlington-Alexandria (DC-VA-MD-WV), Chicago Naperville-Elgin (IL-IN-WI), Los Angeles-Long Beach-Anaheim (CA), San Francisco-Oakland-Hayward (CA), San Jose-Sunnyvale-Santa Clara (CA), San Diego-Carlsbad (CA), Denver-Aurora-Lakewood (CO), Bridgeport-StamfordNorwalk (CT), Miami-Fort Lauderdale-West Palm Beach (FL), Minneapolis-St. Paul-Bloomington (MN-WI), Portland-Vancouver-Hillsboro (OR-WA), and SeattleTacoma-Bellevue (WA)


Low-Income Housing Tax Credit (LIHTC) properties (50 units or less) with Land Use Restriction Agreements (LURAs) in the extended-use period or in the final 24 months of the initial compliance period (in both cases, provided the tax credit investor has exited the project). Properties with certain regulatory agreements with local, state, or federal housing authorities that impose income and/or rent restrictions.




Getting the right loan and the lowest rate requires wisdom and finesse. If you’re ready to partner with a team of professionals who’ve built a foundation on straight talk and true strategy, we are the loan store for you.


(503) 376-7303     Get a Quote


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:

HUD Multifamily Loans - The Complete Guide