Financing for DFW Apartment Building Owners
Purchase, refinance, and cash-out loans for apartment buildings across the Dallas-Fort Worth Metroplex.
- Owners of 5–50 unit DFW apartment buildings
- Private landlords expanding their portfolios
- First-time apartment buyers
- Refinance of existing bank debt approaching maturity
Apartment Loans, at a glance
- Loan size
- $500K – $250M
- Amortization
- 25–30 years
- Term
- 5–30 years
- LTV
- Up to 80%
- DSCR
- 1.20x–1.25x
- Rate
- Competitive with agency and bank markets
- Typical close
- 45–75 days
Not every apartment building owner wants to deal with the paperwork and overhead of an agency or CMBS loan. For DFW landlords running 5 to 50 unit apartment buildings, the backbone of the DFW housing stock, there is a full universe of bank, credit union, and small-balance agency products designed for exactly that borrower profile. We specialize in matching small-to-mid-cap apartment owners with the lender whose product actually fits.
The practical difference between an "apartment loan" at the small-balance level and an "institutional multifamily loan" is paperwork and closing timelines. A $2M apartment loan with a DFW community bank can close in 30 days with relationship pricing. A $2M Freddie SBL loan offers lower rates and non-recourse but closes in 60 days with more third-party reports. Neither is objectively better, it depends on the borrower's priorities and the specific asset.
Bank vs. agency for DFW small-balance apartments
Community banks and regional banks in DFW offer some of the most competitive small-balance apartment financing in the country because the local market is so deep and bank competition is so fierce. Expect 5- or 7-year fixed rates with 25-year amortization, relationship-based credit decisions, and recourse. Rates are competitive with agency and closings are fast.
Freddie SBL (Small Balance Loan) is the best non-recourse option in the $1M–$7.5M range. It offers 30-year amortization, non-recourse with standard carve-outs, assumable, and 5- to 10-year fixed-rate options. Trade-off: harder yield maintenance prepayment structure and more third-party reports than a bank deal.
We run every small-balance apartment deal through both options so the borrower can see the trade-off numerically before choosing.
Common apartment refinance scenarios in DFW
The most common refinance scenario in DFW right now is a small-balance apartment owner whose 5-year bank loan is maturing and the reset rate is materially higher than the original. We evaluate three options: refinance with the same bank at reset terms, refinance with a different bank at fresh relationship pricing, or refinance into Freddie SBL for long-term fixed-rate certainty.
The right choice depends on the property's cash flow, the owner's overall portfolio, and interest rate outlook. We do not have a bias toward any single product, we place the deal where it actually performs best for the borrower.
Ready to explore Apartment options?
Get a QuoteApartment Loans, FAQ
What's the minimum number of units for a DFW apartment loan?
5 units is the floor for most commercial multifamily products, including Freddie SBL and Fannie DUS. 1–4 unit properties are financed as residential investment loans, not commercial. A duplex or triplex falls under a different lender pool entirely.
Can I buy a DFW apartment building with 10% down?
Rarely. Most apartment loans require 20%–25% down (75%–80% LTV). The exceptions are SBA 504 (which does not fit because investment real estate is not owner-occupied), HUD 223(f) for affordable or seasoned sponsors, and owner-occupied house hacks under 5 units (residential, not commercial).
What DSCR do I need for an apartment loan?
1.20x–1.25x is the standard minimum for stabilized deals. Underwriters calculate DSCR using the proposed new loan debt service against stabilized NOI, they do not take the seller's pro forma at face value. Expect the underwritten NOI to be more conservative than the offering memorandum.
Are apartment loans in DFW non-recourse?
Agency loans (Freddie SBL, Fannie) are non-recourse. Most bank loans below $5M are recourse. Above $10M, non-recourse is negotiable depending on the sponsor and the deal. Recourse is not a deal-killer, it trades off against other terms and the goal is to get the borrower the right bundle for their risk profile.
How long does it take to close on an apartment building in DFW?
A clean bank deal closes in 30–45 days. A clean Freddie SBL deal closes in 45–60 days. Both timelines assume prompt borrower response on document requests. We pre-collect most of the underwriting file at term sheet so the clock actually starts on day one.
Other loan programs
SBA
SBA Loans
Government-guaranteed financing for owner-users buying, building, or expanding commercial property across North Texas.
- Loan size
- $150K → $15M
- Close
- 45–75 days
SBA 504
SBA 504 Loans
The only commercial loan product in the country that gives owner-occupiers a 20- or 25-year fixed rate on 40% of their purchase.
- Loan size
- $500K → $15M
- Close
- 60–90 days
SBA 7(a)
SBA 7(a) Loans
The most flexible small-business loan in the country, real estate, acquisition, equipment, and working capital in a single package.
- Loan size
- $50K → $5M
- Close
- 45–60 days with Preferred Lender
Ready to start your deal?
Tell us about your property and we'll match you to the right capital source across our network of 30+ lenders.