1. Home
  2. Apartment Loan Locations
  3. California

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.

Ready to Get a Multifamily Loan Quote in California?

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.

Get a Quote

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

436

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.

Commercial Loan Finder

Fill this form out to find the best commercial loan programs for your needs.

Get A Free Quote

Get a free commercial loan quote. This process does not affect your credit score.

Please put your first name here.
Please put your last name here.
Please put your email here.
Please put your phone number here.
Please select a property type.

Was this page helpful?

Real Deals. Real Results.

Success Stories

See how we've helped borrowers across the country close complex deals and reach their goals.

Ace Hardware Franchise Grand Opening - Herb and Gwen Velazquez SBA 7(a)

New Ace Hardware Franchise Financing

Alpharetta, GA Retail Franchise Real Estate + Working Capital

CLD was most helpful from answering my initial questions to the follow up... We would not have been able to start this business without CLD.

— Herb & Gwen Velazquez Read Story
Golden Valley Luxury Apartments - 332 Units, Bakersfield CA CMBS

Apartment Refinance — 332 Units

Bakersfield, CA Luxury Multifamily Non-Recourse · 10-Yr I/O

I had a tremendously good experience with CLD and especially with my loan specialist — she identified the ideal loan program and handled everything professionally.

— Golden Valley Apartments Read Story
University Place Apartments - Student Housing, Columbia MO Conventional

Student Housing Refinancing — 181 Units

Columbia, MO Mixed-Use Student Housing Non-Recourse · 10-Yr

I felt confident through the process that things were under control, that my interests were protected — always a pleasure to work with.

— Mark Leifield Read Story

Want to see what real clients say about working with us?

Read Our Unfiltered Reviews