$15M Multifamily Refinance Houston | Commercial Lending Solutions 
Loan Size Example

$15 Million Multifamily Refinance in Houston

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $15 million multifamily refinance in Houston represents the sweet spot for permanent agency execution and life company structures. In 2026, Houston's multifamily market continues to attract refi activity across established submarkets like Midtown, Uptown, and the Inner Loop, where stabilized properties with strong debt service coverage attract institutional capital. At this loan size, borrowers can access agency DUS platforms with rates in the 5.60 percent range, while life companies remain viable for leverage-focused sponsors seeking 55 to 65 percent LTV. The market favors properties with DSCR above 1.25x and seasoned operating histories.

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Capital Stack

What a $15M Multifamily Refinance Capital Stack Looks Like

At $15 million, the capital stack splits cleanly between agency DUS execution and life company balance sheet lending. Agency platforms dominate this size because borrowers unlock competitive rates, longer amortizations, and favorable recourse structures. Life companies compete for larger checks when leverage exceeds what agencies will support, or when borrowers prioritize flexibility over rate optimization.

Capital Source Rate / Cost Size / LTV Notes
Agency DUS platform (standard) 5.60 to 5.95 percent fixed, 30-year amortization $15 million / 55 to 60 percent LTV Most common execution for stabilized properties with DSCR above 1.25x. Recourse typically limited to full corporate guarantee. 7 to 10 day rate locks. Fast closing timeline (45 to 60 days).
Life company balance sheet 5.80 to 6.35 percent fixed, 20 to 30-year amortization $15 million / 60 to 65 percent LTV Preferred for sponsors seeking higher leverage or non-agency underwriting. Full recourse common. Slower process (60 to 90 days) but greater asset flexibility (non-performing, value-add).
Regional bank balance sheet 5.75 to 6.25 percent fixed, 25-year amortization $15 million / 50 to 60 percent LTV Strong option for Houston-based sponsors with banking relationships. Relationship pricing common. Slightly tighter DSCR covenant (1.20x+). Recourse negotiable depending on sponsor strength.
Freddie Mac DUS (small loan program) 5.50 to 5.85 percent fixed, 30-year amortization $15 million / 55 to 58 percent LTV Aggressive pricing alternative to standard agency DUS. Streamlined underwriting for properties with strong market and sponsor track record. Limited flexibility on property type or submarket. 30 to 45 day close.

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Sponsor Profile

Who Closes a $15M Multifamily Refinance Deal

Typical sponsors on $15 million Houston multifamily refinances carry $50 million to $250 million in net worth and have closed 3 to 8 multifamily transactions in the last five years. Most are experienced operators or value-add sponsors seeking to stabilize properties post-lease-up or consolidate debt from higher rates. Motivations center on rate refinancing, extraction of cash flow for redeployment, or bridge loan exit at maturity.

From the CLS CRE Pipeline

A Real $15M Example

CLS CRE closed a $15.2 million 30-year fixed refinance on a 185-unit garden-style property in the Midtown submarket. The borrower, an experienced multifamily operator based in Texas, had acquired the asset five years prior and completed moderate unit-level renovations. At 1.32x DSCR and 57 percent LTV, an agency DUS platform executed at 5.64 percent fixed with a 10-day rate lock. The lender required full corporate recourse and standard property-level covenants (1.20x DSCR minimum). The 60-day close timeline aligned with the sponsor's bridge loan maturity, and the permanent rate locked in a 2 percent savings versus the original bridge facility.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$15M Multifamily Refinance Houston FAQ

Agency platforms typically require DSCR of 1.25x or higher for optimal pricing and terms. Life companies will consider DSCR as low as 1.15x but at higher rates and wider spreads. Houston's stable rent growth and low vacancy across most submarkets support these thresholds. Sponsors below 1.20x should expect recourse requirements or higher rates.
Yes, for agency execution. Most borrowers target 55 to 60 percent LTV to maximize rate competitiveness and access the widest lender universe. Life companies will go to 62 to 65 percent LTV, but at 25 to 50 basis points higher rates and full recourse. The gap between agency and life company pricing narrows when loan size approaches $20 million or when DSCR is marginal.
Agency DUS execution typically closes in 45 to 60 days from rate lock. Life company closings take 60 to 90 days due to portfolio review and underwriting depth. If the sponsor has an expiring bridge loan, locking rate at 60 to 80 days prior ensures adequate cushion. Pre-approval of financial statements and property condition accelerates the process.
Often yes, if the sponsor has a banking relationship and reasonable credit profile. Regional banks can price 10 to 25 basis points tighter than standard agency DUS, offer recourse flexibility, and move faster on approval. However, agency rates remain highly competitive, and banks may impose tighter DSCR covenants or require personal guarantees. The best outcome typically involves comparing both options simultaneously.
Stabilized garden-style and mid-rise multifamily in Midtown, Uptown, Memorial, and Inner Loop submarkets attract the broadest lender appetite. Properties with unit-level unit mix, recent CapEx spend, and lease-up evidence perform well. Class B/C assets with occupancy above 92 percent and trailing 12-month DSCR documentation close fastest.


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