Multifamily Loans in Memphis, Tennessee

Known as the birthplace of blues music and famed for its barbeque, Memphis, Tennessee is also a hotspot for multifamily housing. The city's rich cultural history and vibrant music scene have made it an attractive destination for a diverse range of residents. Our company is proud to offer comprehensive financing services in Memphis for all types of multifamily properties, from duplexes to large apartment complexes. Whether you're a seasoned investor or a first-time landlord, we're here to help you navigate the multifamily financing landscape in this dynamic city.

Memphis's multifamily market is as diverse as its music scene, with properties that cater to a wide range of income levels and lifestyle preferences. The city's multifamily housing sector is thriving, thanks to a combination of affordable property prices, strong rental demand, and favorable financing conditions. We're committed to helping property owners and investors capitalize on these opportunities by providing tailored financing solutions that meet their unique needs and objectives.

Economy in Review

Memphis's economy is as diverse as its population. According to data from the Bureau of Labor Statistics, the city's largest employment sectors are trade, transportation, and utilities, followed by education and health services. This broad economic base provides a stable foundation for the city's multifamily housing market. The presence of several higher education institutions, including the University of Memphis and Rhodes College, contributes to a steady demand for rental housing. Additionally, the city's robust healthcare sector, anchored by institutions like Baptist Memorial Health Care and St. Jude Children's Research Hospital, attracts a steady stream of healthcare professionals seeking quality rental accommodations.

Demographic shifts are also shaping Memphis's multifamily housing market. U.S. Census Bureau data shows that the city is experiencing a steady influx of young professionals and families, drawn by the city's affordable cost of living and vibrant cultural scene. This trend is fueling demand for multifamily housing, particularly in neighborhoods close to the city's major employment centers and educational institutions. As a result, multifamily property owners and investors in Memphis are well-positioned to benefit from these favorable market conditions.

Today's Interest Rates in Memphis

Find today's multifamily loan rates for Memphis in the table below. These are updated every day to ensure you have the best picture of the financing terms you could get.

Please note that these are benchmark index rates only — every loan product will have a rate that varies depending on the property, the location, the borrower's financial strength and experience, and several other factors.

Our Experts

When it comes to getting a multifamily loan, the sheer number of choices can be daunting. What this really means, however, is that there are incredible opportunities for apartment complex investors regardless of location, property size, or experience level.

Multifamily Loans connects borrowers with lenders across the country who are prepared to offer you highly competitive terms. Whether you're buying, developing, or renovating an apartment building, shopping your loan to multiple lenders — not just the bank or credit union down the street — gives you a huge advantage.

Our experienced team of capital markets advisors will source the very best terms from our unparalleled network of lenders to ensure your property gets the best financing terms available. We offer this service completely free of charge.

Looking for more information about Memphis? Read on below. Otherwise, click the button below, and we'll get right back to you with your free multifamily loan quote.

Multifamily Loans in Memphis by Purpose

There are many reasons to get a new multifamily loan for a property. I won't cover each of these, but let's talk about the "big three" reasons to get financing: construction, acquisition, and refinancing.

Acquisition Financing for Multifamily Properties in Memphis

Buying an apartment building is one of the most common reasons investors consider a multifamily loan. It's also one place many go wrong: Loan terms can directly impact the profitability of an acquisition in a serious way (both positively and negatively).

There are many types of loans that can be used for buying multifamily real estate — and it can be difficult to navigate all differences between Fannie Mae, Freddie Mac, bank, credit union, HUD, and the various other types of loans, but it's a critically important part of the purchasing process. Reach out to our team using the form below to see what's possible.

Construction Loans for Multifamily Properties in Memphis

America needs housing, both on a broad level and specifically in Memphis. Development costs these days are often eye-wateringly high, though, so getting strong financing in place is absolutely essential to ensure your project turns a profit.

Refinance a Multifamily Property in Memphis

Most multifamily loans are only partially amortizing. This means once the loan term is up, the borrower must either pay a rather large "balloon payment" or refinance the loan.

Refinancing can be difficult — especially if you already have a great loan in place with fantastic terms. That's why it's essential to look at all your options across the board. And remember: Even if your interest rate goes up (and sometimes this is unavoidable), there's often great opportunities to boost your investment's returns with a strong refinancing loan. We'll source the best terms available for your multifamily refinance — just drop your details in the form at the bottom, and we'll get to work.

Current Multifamily Loans in Memphis

There are a wide range of multifamily financing options in Memphis. Keep reading to learn which loan types could be the most suitable for your property.

1. Bank and Credit Union Loans

Loans from banks and credit unions are a diverse bunch. Every institution typically has different preferences when it comes to location, property size, and risk. While it's difficult to give detailed general information about what to expect from a local, regional, or national bank or credit union, loans often require some kind of recourse and (usually) a larger down payment compared to agency loans.

2. Fannie Mae Multifamily Loans

Fannie Mae Multifamily loans offers loans in Memphis in various sizes. These financing options offer competitive floating and fixed rates for a variety of uses. See below for the latest rates and terms. Note that the Fannie Small loan is particularly competitive for amounts under $9 million.

3. Freddie Mac Multifamily Loans

Like Fannie Mae, Freddie Mac also offers a wide range of multifamily loans. The GSE's most popular loan for smaller investors, the Freddie Mac Small Balance Loan, is a great option for those seeking non-recourse financing for amounts of under $7.5 million, and there are many other Freddie loans that cover everything from student housing to mobile home parks.

4. HUD Multifamily Loans

While you might associate HUD with affordable and Section 8 housing projects, the U.S. Department of Housing and Urban Development backs several loans in Memphis with incredibly strong terms — and they work wonders for market-rate properties.

Take the HUD 221(d)(4) loan, for example. This construction financing is hard to beat, thanks to fully amortizing terms of 40+ years, a low, fixed rate, and high leverage allowances.

HUD's 223(f) loan is equally impressive: a great acquisition or refinancing option that offers a fixed rate, full amortization, and leverage of up to 83.3% for market-rate (and higher for affordable) properties.

5. Bridge Loans

If you're after short-term financing for a multifamily property, a bridge loan could be a great option. These loans do come at a higher cost compared to many others, but the flexibility can make it more than worth it — particularly if your property is still stabilizing.

6. CMBS Loans

Commercial mortgage-backed security loans are asset focused. That means that getting approved for one comes down to the strength of the property, not the borrower. Multifamily CMBS loans often offer leverage up to 75% for eligible properties, and the loans also are non-recourse and (often) are tied to a fixed interest rate.

If you are interested in applying for a multifamily loan in Memphis? Put your details in the form below, and we’ll match you with the best lender for your investment strategy.

Multifamily Property Insurance in Memphis

Hold up: This part isn't about loans, but it's just as important to your investment's success. Let's talk about insurance. Rather quickly, too — I know it's probably not your favorite topic.

Multifamily insurance costs have shot through the roof during the past couple years, though I don't need to tell you. Some places have seen increases of 200% or more, and even less-affected states and locations have seen costs rise by at least 30% to 50% in a single year.

Janover Insurance Group is dedicated to finding the best insurance solutions for your commercial real estate assets in Memphis. Click to get a free insurance quote for your multifamily or other commercial property — there's absolutely no obligation. (And if you're in a homeowners association that could use a better HOA insurance policy, they offer great expertise here as well.)