Permanent Debt for Stabilized DFW Assets
Long-term, non-recourse, fixed-rate capital for stabilized commercial real estate in Dallas-Fort Worth.
- Stabilized multifamily (agency or life-co execution)
- Industrial, office, and retail with strong tenancy
- Cash-out refinance on stabilized cash-flowing assets
- Investors seeking non-recourse, fixed-rate debt
Permanent Loans, at a glance
- Loan size
- $2M – $500M
- Amortization
- 25–30 years
- Term
- 5, 7, 10, 12, or 15 years fixed
- LTV
- Up to 75%
- DSCR
- 1.25x minimum (tighter for hospitality)
- Rate
- Treasury + 1.75% to 3%
- Typical close
- 60–90 days
Permanent debt is the endpoint of most commercial real estate capital stacks. Once a property is stabilized, leased up, cash-flowing, with a credible operating history, the business plan is done and the goal is cheap, long-term, non-recourse debt to hold the asset through the cycle. Permanent lenders underwrite to in-place cash flow, require clean rent rolls and trailing financials, and in exchange offer the lowest rates and longest terms available in the commercial lending universe.
In DFW the permanent lender market splits by asset class. Multifamily almost always goes to Fannie Mae, Freddie Mac, or HUD (agency execution). Industrial and Class A office typically route to life insurance companies or CMBS. Retail, mixed-use, and hospitality depend heavily on tenant credit and operating history. We map the deal to the right execution on day one, a DFW multifamily sponsor should not be wasting time with CMBS quotes when agency will almost always win on rate and proceeds.
Agency vs. CMBS vs. life companies
Agency debt (Fannie Mae, Freddie Mac, HUD) is the best execution for stabilized multifamily in DFW, lowest rates, highest proceeds, non-recourse, assumable, and up to 30-year amortization on HUD. Freddie Mac SBL (Small Balance Loan) handles deals down to $1M, and Fannie DUS handles the larger side.
CMBS is the workhorse for non-multifamily, industrial, office, retail, hospitality, mixed-use. It is rate-driven (spreads to the 10-year Treasury), non-recourse, and capable of high proceeds on quality assets. The trade-off is servicing rigidity: CMBS loans are packaged into bonds and the master servicer is not flexible on changes.
Life insurance companies write the tightest credit but offer the lowest rates and the most flexibility during the term. Life-co lenders cherry-pick the best deals, trophy assets in A+ locations with institutional sponsors, and DFW has deep life-company relationships because of the volume of high-quality CRE.
What permanent lenders actually look at
Three numbers determine whether a deal gets a permanent loan quote: debt service coverage ratio (DSCR), loan-to-value (LTV), and debt yield. DSCR of 1.25x is the floor for multifamily and strong retail; 1.30x–1.40x for office, industrial, and hotels. LTV tops out at 75% on best-in-class deals and gets trimmed for weaker properties. Debt yield (NOI / loan amount) has become the most important single metric, most lenders want 7%–8% minimum in the current rate environment.
Assuming the numbers work, the rest of underwriting is about the rent roll, lease abstracts, tenant credit, trailing operating statements, and third-party reports (appraisal, property condition, environmental). A clean file closes in 60 days. A messy file can take 120.
Ready to explore Permanent options?
Get a QuotePermanent Loans, FAQ
What permanent loan rates are available in DFW right now?
Pricing on stabilized DFW real estate depends heavily on asset class, leverage, and execution. Agency multifamily is pricing tightest; CMBS is wider; life companies are in between. We run every deal through multiple capital sources before presenting the rate picture because the spread between best and worst quotes on the same asset can exceed 100 basis points.
Can I get a non-recourse permanent loan?
Yes. Agency debt, CMBS, and life-company loans are all non-recourse (with standard bad-boy carve-outs). Bank permanent loans are usually recourse until the deal gets above $5M–$10M and the sponsor has an established relationship with the bank.
How much should I plan for closing costs on a permanent loan?
Plan on 1.5%–2.5% of the loan amount for closing costs, third-party reports ($15K–$40K), lender legal ($20K–$60K), title and survey, lender origination (0.5%–1.0%), and any defeasance or yield maintenance on the existing debt. We provide a full closing cost estimate upfront on every file.
Do permanent loans allow cash-out refinance in DFW?
Yes, up to the lender's maximum LTV. Cash-out proceeds are commonly used to pay off bridge debt, return equity to investors, or fund additional acquisitions. Agency multifamily in particular is very accommodating on cash-out refi for seasoned assets.
How long does a permanent loan take to close?
60–75 days from signed term sheet on a clean file. Agency multifamily can close faster (45–60 days) with an established DUS or Optigo lender. CMBS sometimes takes longer because of the B-piece buyer review in the secondary market.
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
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