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Multifamily & Apartment Financing in Vermont

Commercial Loan Direct (CLD) provides apartment loans in Vermont. Current apartment loan rates in Vermont range from 4.93% to 12.95%, depending on the loan program.

Vermont Apartment Loan Rates

Loan Types Rates LTV Loan Amount
Fannie Mae 5.66% - 6.46% 80% $700,000+
Freddie Mac 5.96% - 9.43% 80% $1,000,000+
FHA 4.84% - 6.19% 83.3% $5,000,000+
Conduit / CMBS 5.81% - 7.74% 75% $2,000,000+
Insurance 5.31% - 8.59% 75% $5,000,000+
USDA 6.2% - 8.95% 85% $1,000,000+
Bridge 5.95% - 12.95% 80% $1,500,000+
Construction 5.7% - 8.95% 83.3% $1,000,000+
Conventional 4.93% - 8.95% 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 Vermont

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

Vermont Cities and Towns Served

16

Multifamily Commercial Loans in Vermont (Summary)

Multifamily financing in Vermont is available for residential properties with five or more units and is primarily underwritten based on the property’s net operating income (NOI) and long-term financial stability. Lenders focus on debt service coverage ratio (DSCR), occupancy history, rent levels, borrower experience, and the economic fundamentals of the local market.

Common Multifamily Loan Options

  • Agency loans (Fannie Mae and Freddie Mac): Best suited for stabilized properties with strong occupancy and consistent operating performance. These loans often offer long terms and competitive rates for qualified assets.
  • Local and regional bank financing: Community and regional lenders play a major role in Vermont, often providing relationship-based lending and flexible structures for smaller properties.
  • Bridge loans: Short-term financing designed for value-add projects, lease-up situations, or property repositioning, with the goal of refinancing into permanent debt after stabilization.
  • CMBS or debt fund financing: Typically used for larger loan amounts or unique situations, offering flexible underwriting but sometimes including stricter prepayment terms.
  • Construction and rehabilitation financing: Used for new development or significant renovations, generally requiring borrower experience, strong liquidity, and a clearly defined exit strategy.

Key Underwriting Factors

  • Cash flow and DSCR: Lenders require stable income sufficient to cover debt obligations.
  • Occupancy and tenant stability: Consistent occupancy and reliable collections are critical, especially in smaller markets.
  • Borrower strength: Net worth, liquidity, and multifamily ownership or management experience impact approval and loan terms.
  • Property condition: Deferred maintenance or capital improvement needs may reduce loan proceeds or require reserve escrows.
  • Market fundamentals: Population trends, employment drivers, and long-term housing demand.

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 improvements: Fund unit upgrades, energy efficiency improvements, or operational enhancements.
  • New development: Finance ground-up construction with a plan to refinance after lease-up and stabilization.

Market-Specific Considerations in Vermont

Vermont’s multifamily market is characterized by limited housing supply and strong rental demand in areas such as Burlington, Montpelier, and Rutland. However, lenders often take a conservative approach due to slower population growth and smaller market sizes. Factors such as property age, maintenance needs, energy efficiency, and realistic rent projections are especially important for loan approval.

How to Improve Loan Approval and Terms

  • Provide complete financial documentation: Current rent roll, trailing 12-month income and expenses, and a detailed capital improvement plan if applicable.
  • Support projections with local data: Use comparable rents and occupancy trends from the submarket.
  • Maintain adequate liquidity: Post-closing reserves and operating capital strengthen the loan request.
  • Match financing to the strategy: Bridge financing for transitional properties, long-term agency or bank loans for stabilized assets.

Lending Cities

Commercial loan direct provides services in the following Vermont 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 Vermont economic reports to get a better understanding of your market.

  • Addison
  • Addison County
  • Arlington
  • Barre
  • Bellows Falls
  • Bennington
  • Bennington County
  • Brandon
  • Brattleboro
  • Bridport
  • Bristol
  • Burlington
  • Caledonia County
  • Castleton
  • Charlotte
  • Chelsea
  • Chester
  • Chittenden
  • Chittenden County
  • Clarendon
  • Colchester
  • Danby
  • Dover
  • Enosburg Falls
  • Essex County
  • Essex Junction
  • Fair Haven
  • Ferrisburgh
  • Franklin County
  • Grand Isle County
  • Guildhall
  • Hardwick
  • Hartford
  • Hinesburg
  • Hyde Park
  • Jamaica
  • Jericho
  • Johnson
  • Lamoille County
  • Leicester
  • Lincoln
  • Londonderry
  • Lunenburg
  • Lyndon
  • Lyndonville
  • Manchester Center
  • Mendon
  • Middlebury (village)
  • Milton
  • Montgomery
  • Montpelier
  • Moretown
  • Morristown
  • Morrisville
  • Mount Holly
  • Newfane
  • Newport
  • North Bennington
  • North Hero
  • Northfield
  • Orange County
  • Orleans County
  • Pawlet
  • Poultney
  • Pownal
  • Randolph
  • Richford
  • Rockingham
  • Rutland
  • Rutland County
  • Saint Albans
  • Saint Johnsbury
  • Salisbury
  • South Barre
  • South Burlington
  • Springfield
  • St Johnsbury
  • Starksboro
  • Stowe
  • Swanton
  • Townshend
  • Vergennes
  • Washington
  • Washington County
  • Waterbury
  • West Brattleboro
  • West Rutland
  • White River Junction
  • Wilder
  • Williamstown
  • Williston
  • Windham County
  • Windsor
  • Windsor County
  • Winooski
  • Woodstock

Commercial Loan FAQs in Vermont

Multifamily interest rates in Vermont vary based on loan type, property type, loan-to-value, debt service coverage ratio, borrower strength, and market conditions. They range from approximately 4.93% to 12.95%.

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

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

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Fernando and Leanne are Amazing

Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever

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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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