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Multifamily & Apartment Financing in California

Commercial Loan Direct (CLD) provides commercial real estate loans in California. Current commercial loan rates in California range from 4.99% to 12.75% depending on the loan program.

California Apartment Loan Rates

Loan Types Rates LTV Loan Amount
Fannie Mae 5.46% - 6.26% 80% $700,000+
Freddie Mac 5.76% - 9.23% 80% $1,000,000+
FHA 4.87% - 6.22% 83.3% $5,000,000+
Conduit / CMBS 5.63% - 7.56% 75% $2,000,000+
Insurance 5.13% - 8.4% 75% $5,000,000+
USDA 6% - 8.75% 85% $1,000,000+
Bridge 5.75% - 12.75% 80% $1,500,000+
Construction 5.5% - 8.75% 83.3% $1,000,000+
Conventional 4.99% - 8.75% 80.0% $1,000,000+

For more in-depth multifamily interest rates, please visit our Apartment Loan Rates page.

Note: The commercial mortgage rates displayed in this website should be used as a guideline and do not represent a commitment to lend. Commercial Loan Direct and CLD Financial, LLC are not liable for any commercial mortgage interest rate or data entry errors that might affectthe displayed commercial loan rates. Commercial loan rates may change at any time and without notice.

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California Interest Rates starting at 4.99%. Tell us about your property and financing goals. We will match your request with lending options based on program fit and current market conditions.

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Additional Multifamily Types

Additional Multifamily Mortgages

Locations Served in California

We are proud to be serving the state of California. Here are our commercial loan statistics for this state.

California Cities and Towns Served

435

The California multifamily market in 2026 is defined by extreme legislative activism and a pivoting capital market. Following the end of the Federal Reserve's quantitative tightening in late 2025, liquidity has begun to return, but developers face a complex "regulatory premium." With high-profile laws like SB 79 (transit upzoning) and SB 1037 (enforcement penalties) taking full effect, the landscape is shifting toward high-density, transit-oriented development and the preservation of existing affordable stock.

Key Financing Sources and Programs

Financing in California is heavily influenced by state-run subordinate debt programs designed to bridge the "California gap" between construction costs and market rents.

  • CalHFA Mixed-Income Program (MIP): A flagship program for 2026, offering subordinate financing for projects providing housing for residents between 30% and 120% of Area Median Income (AMI). The 2026 funding cycle has approximately $50 million to $75 million available.
  • Low-Income Housing Tax Credit (LIHTC): Managed by the CTCAC, 2026 features three distinct award rounds. Round 1 9% awards are scheduled for June 2026, while 4% awards (often paired with tax-exempt bonds) are rolling. New 2026 "Threshold Basis Limits" have been updated to reflect the increased costs of labor and materials.
  • HUD / FHA 221(d)(4): Remains a staple for new construction due to its high leverage and 40-year terms. Current 2026 rates for these non-recourse loans are hovering between 5.46% and 5.96%.
  • Agency Debt (Fannie Mae & Freddie Mac): For stabilized "Class A" and "Class B" assets, 10-year fixed-rate loans are currently quoting between 5.61% and 7.71%. Many institutional lenders are focusing on San Diego and Sacramento, where demand remains more resilient than in some San Francisco submarkets.

Market Trends and Economic Drivers

Investors in California are navigating a unique environment of "Builder’s Remedy" and stabilizing benchmark rates:

  • The Builder’s Remedy: In 2026, developers are increasingly using this provision to bypass local zoning in cities without compliant Housing Elements. Lenders are becoming more comfortable financing these projects as judicial reviews have been expedited under new laws like SB 808.
  • Rate Stabilization: With the 10-year Treasury yield currently around 4.21%, the volatility of 2024–2025 has subsided, allowing for more accurate underwriting of "exit cap rates" for bridge-to-perm transitions.
  • Transit-Oriented Focus: SB 79 and AB 1050 have unlocked higher density near transit and simplified the conversion of commercial properties to residential use, creating a "secondary market" for underperforming retail and office sites.
  • Operational Pressures: New laws in 2026, such as the requirement for landlords to provide refrigerators (AB 628) and new utility fee transparency requirements (SB 1210), are slightly compressing Net Operating Income (NOI) margins, requiring more conservative debt-service coverage ratio (DSCR) underwriting.

Lending Cities

Commercial loan direct provides services in the following California cities. Please note we may be able to provide services in other cities as well by request. Rates are dependent on the market in your locale.

Commercial Loan FAQs in California

Multifamily interest rates in California vary based on loan type, property type, loan-to-value, debt service coverage ratio, borrower strength, and market conditions. They range from approximately 4.99% to 12.75%.

Borrowers in California can access Conventional, CMBS/Conduit, Insurance, FHA/HUD, USDA, Bridge, Construction, and SBA financing based on property type, leverage, and occupancy.

Multifamily loan rates in California depend on loan type, property cash flow, debt service coverage ratio, loan-to-value, borrower strength, and market conditions.

Yes. Owner-occupied financing is available in California, including Conventional, Insurance, SBA, USDA, and selected agency programs when eligibility requirements are met.

Yes. Refinance options in California include rate-and-term and cash-out structures, subject to underwriting, property performance, and lender program guidelines.

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If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.

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