$2M Multifamily Refinance Miami | Commercial Lending Solutions 
Loan Size Example

$2 Million Multifamily Refinance in Miami

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $2 million multifamily refinance in Miami represents the sweet spot for small-balance agency execution, where borrowers can access competitive fixed rates and 30-year amortization on stabilized garden-style or mid-rise assets. Miami's persistent population growth and rental demand support strong underwriting for 4 to 12-unit properties and smaller complexes across established neighborhoods like Wynwood, Allapattah, and Buena Vista. At this loan size, Freddie Mac Optigo SBL and Fannie Mae DUS Small products dominate the market, offering 60 to 75 percent LTV capacity and rates in the 6.0 to 6.4 percent range tied to 10-year Treasury. Most sponsors pursue Miami multifamily refi deals to extend maturity, lower interest expense, or unlock equity for capital improvement or portfolio expansion.

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Capital Stack

What a $2M Multifamily Refinance Capital Stack Looks Like

At $2 million in Miami, agency balance sheet lending (Freddie SBL and Fannie Small) is the primary and most efficient path, capturing the vast majority of small multifamily refi volume. These programs are purpose-built for this deal size and property type, offering speed, certainty, and borrower-friendly terms that bank portfolio and life company alternatives cannot match on rate or flexibility.

Capital Source Rate / Cost Size / LTV Notes
A regional GSE (Freddie Mac Optigo SBL or Fannie Mae DUS Small) 6.0 to 6.4 percent fixed, 10-year Treasury plus 145 to 165 basis points $2M / 60 to 75 percent LTV 30-year amortization, full recourse, 45 to 60-day close, no origination points, strong DSCR covenant (typically 1.15 to 1.25x minimum). Preferred execution for stabilized Miami multifamily.
A regional bank balance sheet program 6.25 to 6.65 percent fixed, 10-year Treasury plus 160 to 180 basis points $2M / 65 to 75 percent LTV 30-year amortization, full or non-recourse depending on sponsor strength and property performance, 30 to 45-day close, may require sponsor net worth 50 to 100 percent of loan amount. Used when agency execution is slower or sponsor prefers bank relationship.
A debt fund or alternative lender 6.5 to 7.2 percent fixed, 10-year Treasury plus 175 to 210 basis points $2M / 60 to 70 percent LTV Shorter fixed period (5 to 7 years common), faster underwriting, flexible underwriting for non-stabilized or value-add scenarios, prepayment penalties and step-downs typical. Secondary option if agency/bank execution is unavailable or property does not meet GSE seasoning or physical condition standards.
A life insurance company or institutional lender 6.4 to 6.85 percent fixed, 10-year Treasury plus 165 to 190 basis points $2M / 55 to 70 percent LTV 25 to 30-year amortization, longer process (60 to 90 days), recourse or non-recourse based on sponsor credit and property quality. More common for sponsor-favorable terms or if agency execution is exhausted; typically used for larger or mixed-use Miami assets.

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 $2M Multifamily Refinance Deal

Typical sponsors pursuing $2 million multifamily refi in Miami are established local or regional operators with 5 to 15 properties and $5 to $25 million in net worth, holding stabilized 4 to 15-unit buildings with rents indexed to Miami's strong market fundamentals. These borrowers are often refinancing original construction debt or earlier bridge financing, targeting 6 to 10 basis point rate arbitrage or equity unlock at 60 to 70 percent LTV. Many are using the refi to consolidate debt, fund deferred capital expenditures, or redeploy equity into opportunistic Miami acquisitions in emerging neighborhoods.

From the CLS CRE Pipeline

A Real $2M Example

A borrower controlled a 12-unit garden apartment complex in Buena Vista with a 2021 bridge loan carrying a 7.5 percent rate. The asset had stabilized at 94 percent occupancy with $2,100 per unit average rent. We executed a $1.85 million Freddie SBL loan at 6.15 percent fixed, 30-year amortization, 70 percent LTV, and 1.18x DSCR, closing in 52 days. The borrower reduced annual interest expense by $255,000, extended maturity 10 years, and satisfied a lender covenant that required agency execution by year-end.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$2M Multifamily Refinance Miami FAQ

At $2 million, Freddie SBL and Fannie Small are purpose-built, competitive on rate (typically 15 to 30 basis points tighter than bank/life company), faster on close (45 to 60 days versus 60 to 90), and require no origination points or net worth premiums. Banks and life companies reserve balance sheet and loan committee time for larger deals above $5 million where their fixed costs are recovered; below that, agency execution dominates both volume and pricing.
Most stabilized garden-style and mid-rise assets in Miami execute at 65 to 75 percent LTV and 1.15 to 1.30x DSCR on the agency side. Borrowers seeking maximum leverage may push to 75 percent LTV, but pay a rate premium and must demonstrate occupancy above 90 percent and expense ratios below 35 percent. Lower DSCR (below 1.10x) typically requires sponsor net worth or credit concessions that offset the benefit of lower leverage.
Miami's sustained population inflow and limited new multifamily supply support strong underwriting fundamentals; most 4 to 15-unit assets can achieve 90 to 95 percent occupancy and annual rent growth of 3 to 5 percent, which improves DSCR and LTV ratios compared to slower growth markets. This allows Miami sponsors to access 65 to 75 percent LTV on agency programs, versus 55 to 65 percent in flat or declining markets, and reduces lender scrutiny on expense assumptions.
Agency execution typically closes in 45 to 60 days from full application, with closing costs running 0.85 to 1.35 percent of loan amount (mostly appraisal, title, legal, lender fees). Freddie SBL and Fannie Small charge no origination points, making net interest cost lower than portfolio bank programs. Borrowers should expect 2 to 3 weeks for appraisal and 1 to 2 weeks for underwriting and conditional approval before lender commitment.
Freddie SBL and Fannie Small accept all Miami neighborhoods and prefer stabilized garden-style, mid-rise, and small mixed-use properties built 1975 or later (with waivers possible for well-maintained 1960 to 1975 vintage). Lenders will decline or require special conditions on properties in high-crime ZIP codes, those with significant deferred maintenance, or those exceeding 50 percent affordable/subsidized rent. Checking neighborhood-level crime and median rent trends before application improves approval odds.


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