Are there any 5% rates for multifamily 5-10 units?

Question

Are there any 5% rates for multifamily 5-10 units? I am looking at a deal that will only make sense with such a 5% rate for a 25 year term and 25% down. I do not want to put more down.

Thank you

Tarik Turner · Answer

I would say keep an eye on the 10 year treasury note and overall conventional mortgage rates. The Rate that you looking for probably isn't out there right now unless this is a VA loan or some low leverage owner occupied SFR conventional product ..Also it might not be out there for some time (realistically). Searching for a sub 7% rate at Max LTV on a 5+ unit property is going to be tough. If your deal depends on you having a 5% rate, it probably isn't the right deal for right now. But hey ....crazier things have happened in this industry

Bonnie Low · Answer

Hi, William - 5% is going to be very difficult to find on a 5 unit right now unless you're using seller financing or some other type of creative finance mechanism. You may get in the 6's if you're an experienced investor. Realistically, we'd have to know more about the particular deal to help you find something that works for your criteria. Specifically, location, rents and what your exist strategy is (if you have one.) If you want to send me more information I'd be happy to take a look at it for you.

Scott Wolf · Answer

To piggy back on this, some DSCR lenders may be able to get you there with a buy-down.

Arman Ahmed · Answer

@William Coet

William,

Finding a 5% interest rate for a 5-10 unit multifamily property in today’s market is tough, but not impossible, depending on the lender and loan type. Conventional lenders typically offer higher rates right now, but you might find better terms through local credit unions, community banks, or portfolio lenders, especially if you have strong financials.

You may also want to explore creative financing options like seller financing or assumable loans, especially if the seller has an existing mortgage with a lower rate. Some investors are structuring deals using loan assumptions combined with supplemental financing to make the numbers work.

In Columbus, OH, where I primarily work, we’ve been seeing lenders get more flexible with DSCR (Debt Service Coverage Ratio) loans and hybrid ARM products. If you’re open to discussing options or looking at alternative markets that might offer better cash flow, I’d be happy to help. Let me know what your purchase price range is, and I can point you in the right direction!

Deven Ziertman · Answer

Finding a true 5% fixed rate on a 5–10 unit multifamily deal is tough, but there are options to consider. Portfolio lenders and credit unions may offer better rates for strong borrowers. Some DSCR lenders allow temporary or permanent rate buy-downs to help hit your target. Creative financing options like seller financing or assumable loans could also help. Fannie/Freddie Small Balance Loans might offer rates in the low 6% range if the deal qualifies. Ultimately, the rate depends on deal strength, borrower profile, and loan structure.

Brandon Croucier · Answer

Rates just aren't that low right now, especially for commercial multifamily.

If the loan amount qualifies over $1M & you have sufficient net worth requirements & experience, a fannie/freddie small balance loan would get you as low as it can get. These loans price different based on the deal itself however..

Erik Estrada · Answer

What's the price range?

Jimmy Lieu · Answer

Strongly recommend reaching out to Devin!

Are there any 5% rates for multifamily 5-10 units?

Are there any 5% rates for multifamily 5-10 units?

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