Multifamily & Apartment Financing in Tennessee

Commercial Loan Direct (CLD) provides apartment loans in Tennessee. Current apartment loan rates in Tennessee range from 4.83% to 12.85%, depending on the loan program.

Tennessee Apartment Loan Rates

Loan Types Rates LTV Loan Amount
Fannie Mae 5.56% - 6.36% 80% $700,000+
Freddie Mac 5.86% - 9.33% 80% $1,000,000+
FHA 4.74% - 6.09% 83.3% $5,000,000+
Conduit / CMBS 5.71% - 7.64% 75% $2,000,000+
Insurance 5.21% - 8.49% 75% $5,000,000+
USDA 6.1% - 8.85% 85% $1,000,000+
Bridge 5.85% - 12.85% 80% $1,500,000+
Construction 5.6% - 8.85% 83.3% $1,000,000+
Conventional 4.83% - 8.85% 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 affect the displayed commercial loan rates. Commercial loan rates may change at any time and without notice.

Additional Multifamily Types

Additional Multifamily Mortgages

Locations Served in Tennessee

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

Tennessee Cities and Towns Served

69

Multifamily Commercial Loans in Tennessee (Summary)

Multifamily financing in Tennessee is available for residential properties with five or more units and is primarily underwritten based on the property’s net operating income (NOI) and overall financial performance. Lenders evaluate debt service coverage ratio (DSCR), occupancy levels, rent trends, borrower experience, and the strength of the local submarket.

Common Multifamily Loan Options

  • Agency loans (Fannie Mae and Freddie Mac): Best suited for stabilized properties with strong occupancy and consistent operating history. These loans often offer long terms, competitive rates, and higher leverage for qualified borrowers.
  • Bank and credit union financing: Local and regional lenders are active throughout Tennessee and may provide flexible structures, particularly for smaller properties or experienced investors.
  • Bridge loans: Short-term financing designed for value-add projects, lease-up situations, or property repositioning, with the goal of refinancing into permanent debt once stabilized.
  • CMBS or debt fund financing: Often used for larger or more complex transactions, offering flexible underwriting but sometimes including stricter prepayment provisions.
  • Construction and rehabilitation loans: Used for ground-up development or major renovations, typically requiring borrower experience, strong financials, and a defined exit strategy.

Key Underwriting Factors

  • Cash flow and DSCR: Lenders require stable income sufficient to support debt obligations.
  • Occupancy and rent performance: Historical occupancy, collections, and market-supported rent levels are closely reviewed.
  • Borrower strength: Net worth, liquidity, and multifamily ownership or management experience impact loan approval and terms.
  • Property condition: Deferred maintenance or capital improvement needs may reduce loan proceeds or require repair or replacement reserves.
  • Market fundamentals: Population growth, job trends, new supply, and local economic drivers.

Typical Uses for Multifamily Financing

  • Acquisition: Purchase stabilized or transitional apartment properties.
  • Refinance: Replace existing debt, improve loan terms, or access equity through cash-out.
  • Value-add strategies: Fund renovations, operational improvements, or repositioning.
  • Ground-up development: Finance new construction with a plan to refinance after lease-up and stabilization.

Market-Specific Considerations in Tennessee

Tennessee’s multifamily market is driven by strong population and job growth in major metros such as Nashville, Memphis, Knoxville, and Chattanooga. In-migration, business expansion, and relatively affordable housing compared to other growth markets support long-term rental demand. Lenders closely monitor new construction pipelines, submarket performance, and realistic rent projections to ensure sustainable occupancy levels.

How to Improve Loan Approval and Terms

  • Provide complete financial documentation: Current rent roll, trailing 12-month income and expenses, and a capital improvement plan if applicable.
  • Support projections with market data: Use local rent and occupancy comparables.
  • Maintain adequate liquidity: Lenders prefer borrowers with post-closing reserves and operating capital.
  • Match financing to the business plan: Bridge loans for transitional assets, long-term agency or bank loans for stabilized properties.

Lending Cities

Commercial loan direct provides services in the following Tennessee 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, feel free to use the provided Tennessee economic reports to get a better understanding of your market.

  • Adamsville
  • Alamo
  • Alcoa
  • Algood
  • Altamont
  • Anderson County
  • Apison
  • Ardmore
  • Arlington
  • Ashland City
  • Athens
  • Atoka
  • Banner Hill
  • Bartlett
  • Baxter
  • Bean Station
  • Bedford County
  • Belle Meade
  • Bells
  • Benton
  • Benton County
  • Blaine
  • Bledsoe County
  • Bloomingdale
  • Blount County
  • Blountville
  • Bluff City
  • Bolivar
  • Bon Aqua Junction
  • Bradford
  • Bradley County
  • Brentwood
  • Brentwood Estates
  • Brighton
  • Bristol
  • Brownsville
  • Bruceton
  • Burns
  • Byrdstown
  • Camden
  • Campbell County
  • Cannon County
  • Carroll County
  • Carter County
  • Carthage
  • Caryville
  • Celina
  • Centerville
  • Central
  • Chapel Hill
  • Charlotte
  • Chattanooga
  • Cheatham County
  • Chester County
  • Christiana
  • Church Hill
  • Claiborne County
  • Clarksville
  • Clay County
  • Cleveland
  • Clifton
  • Clinton
  • Coalfield
  • Cocke County
  • Coffee County
  • Collegedale
  • Collierville
  • Colonial Heights
  • Columbia
  • Condon
  • Cookeville
  • Coopertown
  • Cornersville
  • Covington
  • Cowan
  • Crockett County
  • Cross Plains
  • Crossville
  • Crump
  • Cumberland County
  • Dandridge
  • Davidson County
  • Dayton
  • Decatur
  • Decatur County
  • Decaturville
  • Decherd
  • DeKalb County
  • Dickson
  • Dickson County
  • Dodson Branch
  • Dover
  • Dresden
  • Dunlap
  • Dyer
  • Dyer County
  • Dyersburg
  • Eagleton Village
  • East Brainerd
  • East Chattanooga
  • East Cleveland
  • East Ridge
  • Elizabethton
  • Englewood
  • Erin
  • Erwin
  • Estill Springs
  • Etowah
  • Fairfield Glade
  • Fairmount
  • Fairview
  • Fall Branch
  • Falling Water
  • Farragut
  • Fayette County
  • Fayetteville
  • Fentress County
  • Fincastle
  • Forest Hills
  • Franklin
  • Franklin County
  • Gainesboro
  • Gallatin
  • Gatlinburg
  • Germantown
  • Gibson County
  • Giles County
  • Gleason
  • Goodlettsville
  • Gordonsville
  • Grainger County
  • Gray
  • Graysville
  • Green Hill
  • Greenback
  • Greenbrier
  • Greene County
  • Greeneville
  • Greenfield
  • Grimsley
  • Gruetli-Laager
  • Grundy County
  • Halls
  • Hamblen County
  • Hamilton County
  • Hancock County
  • Hardeman County
  • Hardin County
  • Harriman
  • Harrison
  • Harrogate
  • Hartsville
  • Hawkins County
  • Haywood County
  • Henderson
  • Henderson County
  • Hendersonville
  • Henry County
  • Hickman County
  • Hickory Withe
  • Hohenwald
  • Hopewell
  • Houston County
  • Humboldt
  • Humphreys County
  • Hunter
  • Huntingdon
  • Huntsville
  • Jacksboro
  • Jackson
  • Jackson County
  • Jamestown
  • Jasper
  • Jefferson City
  • Jefferson County
  • Jellico
  • Johnson City
  • Johnson County
  • Johnsonville
  • Jonesborough
  • Kenton
  • Kimball
  • Kingsport
  • Kingston
  • Kingston Springs
  • Knox County
  • Knoxville
  • La Vergne
  • Lafayette
  • LaFollette
  • Lake County
  • Lake Tansi
  • Lakeland
  • Lakesite
  • Lakewood
  • Lauderdale County
  • Lawrence County
  • Lawrenceburg
  • Lebanon
  • Lenoir City
  • Lewis County
  • Lewisburg
  • Lexington
  • Lincoln County
  • Linden
  • Livingston
  • Lone Oak
  • Lookout Mountain
  • Loretto
  • Loudon
  • Loudon County
  • Louisville
  • Luttrell
  • Lynchburg
  • Macon County
  • Madison County
  • Madisonville
  • Manchester
  • Marion County
  • Marshall County
  • Martin
  • Maryville
  • Mascot
  • Mason
  • Maury County
  • Maynardville
  • McEwen
  • McKenzie
  • McMinn County
  • McMinnville
  • McNairy County
  • Medina
  • Meigs County
  • Memphis
  • Middle Valley
  • Midtown
  • Midway
  • Milan
  • Millersville
  • Millington
  • Monroe County
  • Monteagle
  • Monterey
  • Montgomery County
  • Moore County
  • Morgan County
  • Morristown
  • Mosheim
  • Mount Carmel
  • Mount Juliet
  • Mount Pleasant
  • Mountain City
  • Mowbray Mountain
  • Munford
  • Murfreesboro
  • Nashville
  • New Hope
  • New Johnsonville
  • New Market
  • New South Memphis
  • New Tazewell
  • New Union
  • Newbern
  • Newport
  • Nolensville
  • Norris
  • Oak Grove
  • Oak Hill
  • Oak Ridge
  • Oakland
  • Obion
  • Obion County
  • Oliver Springs
  • Olivet
  • Oneida
  • Overton County
  • Paris
  • Park City
  • Parsons
  • Pegram
  • Perry County
  • Pickett County
  • Pigeon Forge
  • Pikeville
  • Pine Crest
  • Piperton
  • Plainview
  • Pleasant View
  • Polk County
  • Portland
  • Powells Crossroads
  • Pulaski
  • Putnam County
  • Red Bank
  • Red Boiling Springs
  • Rhea County
  • Ridgely
  • Ridgetop
  • Ripley
  • Roan Mountain
  • Roane County
  • Robertson County
  • Rockwood
  • Rocky Top
  • Rogersville
  • Rural Hill
  • Rutherford
  • Rutherford County
  • Rutledge
  • Sale Creek
  • Savannah
  • Scott County
  • Selmer
  • Sequatchie County
  • Sevier County
  • Sevierville
  • Sewanee
  • Seymour
  • Shackle Island
  • Shelby County
  • Shelbyville
  • Signal Mountain
  • Smith County
  • Smithville
  • Smyrna
  • Sneedville
  • Soddy-Daisy
  • Somerville
  • South Carthage
  • South Cleveland
  • South Fulton
  • South Pittsburg
  • Sparta
  • Spencer
  • Spring City
  • Spring Hill
  • Springfield
  • Spurgeon
  • Stewart County
  • Sullivan County
  • Sumner County
  • Surgoinsville
  • Sweetwater
  • Tazewell
  • Tellico Village
  • Tennessee Ridge
  • Thompson's Station
  • Three Way
  • Tipton County
  • Tiptonville
  • Tracy City
  • Trenton
  • Trousdale County
  • Troy
  • Tullahoma
  • Tusculum
  • Unicoi
  • Unicoi County
  • Union City
  • Union County
  • Unionville
  • Van Buren County
  • Vonore
  • Walden
  • Walnut Hill
  • Warren County
  • Wartburg
  • Washington County
  • Watertown
  • Waverly
  • Wayne County
  • Waynesboro
  • Weakley County
  • Westmoreland
  • White Bluff
  • White County
  • White House
  • White Pine
  • Whiteville
  • Whitwell
  • Wildwood
  • Wildwood Lake
  • Williamson County
  • Wilson County
  • Winchester
  • Woodbury

Commercial Loan FAQs in Tennessee

Multifamily interest rates in Tennessee vary based on loan type, property type, loan-to-value, debt service coverage ratio, borrower strength, and market conditions. They range from approximately 4.83% to 12.85%.

Borrowers in Tennessee 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 Tennessee 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 Tennessee, including Conventional, Insurance, SBA, USDA, and selected agency programs when eligibility requirements are met.

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

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