By Multi-Family USA Editorial Team · Reviewed by Scott Dillingham · Published · Updated
Directional context for US commercial multifamily borrowing costs on 5+ unit assets. This page is educational—rates change daily and vary by lender, asset, and structure. Use live quotes for transaction decisions.
Sample rates, book for real quote
The table below is a directional sample as of Week of September 29, 2026 — not live lender quotes or commitments. Actual pricing depends on asset quality, DSCR, debt yield, LTV, market tier, and lender. Book a free deal review for a real quote on your property.
Directional sample rate table — Week of September 29, 2026
Manual sample rates for education, as of . Sample rates, book for real quote. Book a real quote.
| Product | Sample rate * | Spread frame | Typical LTV / structure | Best for |
|---|---|---|---|---|
| Agency 5-yr fixed (Fannie/Freddie Optigo) — stabilized | 6.55% * | Benchmark + ~140–190 bps | Up to ~75–80% LTV, 1.25x DSCR floor | Core stabilized 5+ unit, 5-yr hold |
| Agency 10-yr fixed (Fannie/Freddie Optigo) — stabilized | 6.45% * | Benchmark + ~110–160 bps | Up to ~70–80% LTV, 1.25x DSCR | Long-term hold, nonrecourse with carve-outs |
| Bridge 12-mo floating + extensions | 6.85% * | SOFR + ~275–325 bps before cap | Up to ~75% LTC, IO; extension fees apply | Lease-up or light value-add, timed refi |
| Bridge 24-mo floating (value-add) | 8.00% * | SOFR + ~350–500 bps before cap | Up to ~80% LTC on cost; stabilized takeout required | Heavy rehab / repositioning |
| Bank balance sheet 5-yr fixed | 6.90% * | Relationship / credit-driven | Up to ~70% LTV, recourse negotiable | Local operator + depository relationship |
| CMBS 10-yr fixed — stabilized | 7.20% * | Spread + structure-driven; defeasance/yield maintenance | Up to ~70% LTV, debt yield ~9–10% | Single-asset or portfolio, CMBS covenant fit |
| FHA/HUD 223(f) 35-yr fully amortizing | 6.35% * + MIP | Program rate + annual MIP; long amortization depth | Up to ~87% LTV on eligible market-rate 223(f) | Eligible acquisition/refi, long hold |
| Debt-fund floating (transitional) | 8.50% * | SOFR + ~400–550 bps before cap | Leverage case-by-case, IO | Non-agency transitional, quick close |
* Manual sample rates — Sample rates, book for real quote. Not a commitment. Confirm live pricing with lenders; pricing moves daily with benchmark.
Directional sample as of Week of September 29, 2026
Ranges below are a directional sample as of Week of September 29, 2026—not promises or live rate sheets. Confirm with lenders before underwriting a purchase or refinance.
| Product | Directional pricing frame | Typical use |
|---|---|---|
| Agency stabilized (Fannie / Freddie Optigo) | Benchmark + ~110–170 bps on conventional fixed 5- and 10-year grids | Stabilized 5+ unit cash flow, longer holds |
| Bridge / transitional | SOFR + ~275–500 bps before cap cost | Value-add, lease-up, timed refinance |
| Bank balance sheet | Relationship / credit-driven; often competes with agency on select profiles | Stabilized or light transitional with banking relationship |
| CMBS stabilized | Spread + structure-driven; prepay/defeasance critical | Stabilized assets where CMBS economics beat agency |
| FHA / HUD (eligible programs) | Program MIP + long amortization; timeline often outweighs coupon | Eligible construction, rehab, or 223(f) paths |
How to think about multifamily lending rates
Multifamily lending rates combine a benchmark index, lender spread, and product-specific terms. The same property can produce different all-in rates across agency, bridge, bank, and CMBS executions because credit assumptions and covenant structures differ.
Apartment loan rates by product type
Agency stabilized apartment loan rates often track benchmark spreads plus agency grid adjustments for occupancy, DSCR, and debt yield. Directionally, stabilized agency spreads on conventional fixed executions have often landed around benchmark plus 110-170 bps in recent late-September 2026 quote cycles—but exact spreads are quote-specific. Program terms are published by Fannie Mae Multifamily and Freddie Mac Multifamily. See Fannie Mae agency stabilized and Freddie Mac Optigo.
Bridge and transitional apartment loan rates typically price higher all-in cost reflecting execution risk, shorter terms, and extension economics. Floating-rate bridge debt often prices at SOFR plus roughly 275-500 bps before cap cost, with index movement and cap premiums adding to all-in carry. The floating index is the Secured Overnight Financing Rate (SOFR), published by the New York Fed. See bridge value-add.
Bank and CMBS apartment loan rates compete with agency on some stabilized profiles while binding differently on leverage, prepay, or relationship pricing.
FHA/HUD pricing is program-driven; sponsors should compare MIP, reserves, and timeline against private agency alternatives. HUD describes its multifamily mortgage insurance programs, including Section 221(d)(4) for new construction and substantial rehabilitation, on its multifamily programs page. See FHA HUD multifamily.
Fannie Mae and Freddie Mac multifamily rates context
Fannie Mae and Freddie Mac Optigo multifamily rates flow through agency correspondent channels with spreads tied to loan size, market tier, asset quality, and coverage metrics. Sponsors often see better execution when packages include lender-normalized NOI, downside stress cases, and clear stabilization evidence. See our Fannie Mae requirements briefing.
Directional ranges—not rate promises—help frame conversations. A stabilized asset with strong debt yield may receive tighter spread indication than a thin-coverage value-add story at the same benchmark level. Quote both GSE channels when the asset is agency-eligible. Both enterprises operate under annual multifamily loan purchase caps set by their regulator, the Federal Housing Finance Agency (FHFA).
Sources
Official sources behind the program descriptions on this page. Sample pricing itself is a manual directional sample, not taken from these sources.
- Fannie Mae Multifamily Selling and Servicing Guide
- Freddie Mac Multifamily conventional loans
- FHFA multifamily loan purchase caps for Fannie Mae and Freddie Mac
- HUD descriptions of multifamily programs (including Section 221(d)(4))
- New York Fed Secured Overnight Financing Rate (SOFR)
Core components of all-in cost
- Benchmark: Base index used for pricing, which can move daily.
- Spread: Risk premium tied to asset quality, sponsorship, and execution channel.
- Fees and reserves: Upfront and ongoing costs that affect effective economics.
- Hedging and caps: Cost of managing floating-rate exposure on bridge and floating permanent debt.
- Prepayment terms: Exit constraints that influence total hold-period cost.
Borrower actions that improve rate outcomes
Competitive pricing usually follows underwriting clarity. Sponsors who provide lender-ready assumptions, downside stress scenarios, and clear post-close reporting plans often receive stronger execution than sponsors who focus only on headline rate.
Practical rate-monitoring checklist
- Refresh in-place and stabilized NOI assumptions before each quote round.
- Compare structures on total expected cost across the full hold period.
- Model refinance and extension economics under rate stress scenarios.
- Track interest-rate cap timing and replacement cost for floating-rate debt.
- Reassess debt strategy whenever business-plan timing materially changes.
For a deeper look at what moved agency and bridge spreads this quarter, see our Q2 2026 multifamily rate spread update. Financing a smaller deal? Our guide to financing a 5–10 unit apartment building walks through loan options and how pricing trade-offs play out at that size.
Pair this page with Learn guides, calculators, and comparisons. Test sizing with the multifamily loan calculator. For 1–4 unit rental pricing context, see current DSCR loan rates on our sister site DSCR Authority. Canadian investor? Canadian multifamily financing, including CMHC MLI Select, is covered on LendCity's multifamily mortgage financing page.