$2 Million Multifamily Refinance in Houston
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $2 million multifamily refinance in Houston represents the sweet spot for small-balance agency execution, where borrowers with stabilized garden-style or mid-rise assets can access competitive fixed-rate debt without the complexity or pricing drag of larger institutional programs. In the current Houston market, these transactions are priced at 6.10 percent on a 10-year fixed basis, reflecting modest agency spreads over the 10-year Treasury and the strong credit profile required at this leverage. Most deals at this size feature loan-to-value ratios between 65 and 75 percent, with debt service coverage ratios between 1.20 and 1.35 times, making them accessible to experienced sponsors managing value-add or stabilized conversions across Houston's diverse submarkets. The Houston multifamily market's supply-constrained story and consistent rent growth make these refinances an effective tool for borrowers looking to lock in long-term financing before rates shift higher.
Get a Quote on Your $2M Deal →What a $2M Multifamily Refinance Capital Stack Looks Like
Agency lenders dominate the $2 million multifamily refinance space in Houston, with Freddie Mac small-balance and Fannie Mae small programs capturing the overwhelming majority of originations. The choice between programs typically hinges on the property's debt service coverage ratio, recourse tolerance, and the sponsor's prior relationship footprint, but both agencies offer efficient underwriting timelines and non-recourse or limited-recourse structures that appeal to disciplined sponsors.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Who Closes a $2M Multifamily Refinance Deal
The typical sponsor for a $2 million Houston multifamily refinance carries a net worth of $2 million to $5 million and has closed 3 to 8 similar deals in the Houston market or statewide. These borrowers are often experienced value-add operators managing 60 to 150 unit properties, moving to stabilized cash flow and seeking to lock in 10-year financing to fund capital reserves or fund a new acquisition. Motivations are straightforward: improve debt structure, lower floating-rate risk, extend amortization, or take cash out for planned capex or development activity.
A Real $2M Example
CLS CRE arranged a $1.95 million Freddie Mac SBL refinance for a 72-unit garden-style property in the Spring Branch submarket that was delivering 1.32 times DSCR at stabilization. The property had been held for four years post-acquisition and had benefited from modest unit-level renovations and rent growth; the borrower wanted a fixed-rate 10-year takeout to fund additional bathroom upgrades and establish a sinking fund. We locked a 6.10 percent rate at 72 percent LTV with a 30-year amortization, zero prepayment penalties, and a 55-day close from application to funding. The transaction closed cleanly with standard agency carve-outs and positioned the sponsor to refinance another acquisition in the Montrose pocket later that year.
Anonymized. All deal references protect borrower and lender identity.
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