Seeking Recommendations for Multifamily Refinance Lenders

[Zachary Myers]

Hi everyone,

I’m exploring options to refinance a multifamily apartment property and would love insights from those who’ve recently navigated this process. Based on my research, several lenders stand out, but I’d appreciate firsthand experiences.

Key Considerations:

• Loan Terms: Fixed rates up to 35 years, interest-only periods (e.g., 10-year interest-only options), and non-recourse structures.
• Competitive Rates: Recent transactions show rates ranging from 2.69% to 4.65% depending on LTV (55%–80%) and property type.
• Lender Specialization: Some lenders excel in specific areas:
  • Greystone and Walker & Dunlop lead in Fannie/Freddie volume and large-scale refinancing.
  • Arbor Realty Trust is praised for smaller-balance loans and flexibility.
  • CREFCOA offers streamlined refinancing with 45–60 day closings and cash-out up to 80% LTV.
  • HUD 223(f) loans provide 35-year fixed terms, ideal for stabilized properties.

Questions for the Community:

1. Have you worked with lenders like Greystone, Arbor, or Freddie Mac?
2. How was their responsiveness and flexibility?
3. For cash-out refinances, did you prioritize LTV (e.g., 75%+) or lower rates?
4. Any surprises in terms/fees?
5. Are there smaller or regional lenders (e.g., Titan Funding, CoreVest) worth considering for unique scenarios?
6. How critical was the lender’s turnaround time (e.g., 60 days vs. 90+ days) in your decision?

Thanks in advance—your experiences will help narrow down the best fit!

P.S. If you’ve refinanced in the past 12 months, sharing your rate/terms (e.g., 10-year fixed at 3.5%) would be incredibly helpful!

[Charles Seaman]

@Zachary Myers My replies to your questions are below.

1.  I've worked with Arbor, Greystone, and Walker & Dunlop.  For clarification, Fannie Mae and Freddie Mac aren't lenders, so you won't be dealing directly with them.

2.  They are all very responsive and they all offer various loan programs.  If you're dealing with them for agency loans (ex. Fannie or Freddie loans), then there won't be much flexibility because Fannie and Freddie generally have pretty strict guidelines.

3.  The answer to this question is really a personal one.  Are you looking for more cash to invest in something new or for more cash flow from the property that you're refinancing?

4.  Generally, most reputable lenders in this space won't have any significant surprises with terms and fees because they spell them out upfront in the applications that they provide before you move forward with the loan underwriting.

5.  Those lenders are best used for bridge scenarios.  In most cases, you probably don't want to be considering them for refinances, unless the property is underperforming and has an upcoming loan maturity.  These options will be more expensive.

6. It wasn't critical at all in my decision. Agency loans will typically take 45-60 days to close. HUD loans will take drastically longer (I've never used one personally), but there can be benefits to using these loans if you're a long-term owner.

The interest rates in your Key Considerations seem very low for agency loans and they're definitely low for bridge loans.  I'm not aware of any lenders that are currently offering rates in the 2.69% to 4.65% range (it doesn't mean that there aren't any, but I'm not aware of them).  Most of the refinances that I've looked at recently have been with agency loans with rates between 5.50% and 6.30%.  The rates for these loans will fluctuate a bit, based on where the treasuries are at that time.