$3M Multifamily Refinance Miami | Commercial Lending Solutions 
Loan Size Example

$3 Million Multifamily Refinance in Miami

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $3 million multifamily refinance in Miami represents the sweet spot for small-balance execution, where borrowers can tap agency liquidity at competitive rates without the complexity of larger institutional structures. In 2026, these deals typically carry leverage between 65 to 75 percent LTV, with rates hovering around 6.00 percent for fixed-rate, 10-year products. Miami's multifamily market remains highly competitive, with strong rent growth and consistent demand from both primary residence and investor-owner occupants driving refi volume. Sponsors are motivated to lock in permanent financing, improve cash flow, or access equity for portfolio acquisitions or value-add capital.

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Capital Stack

What a $3M Multifamily Refinance Capital Stack Looks Like

The $3 million tier is dominated by agency small-balance programs, specifically Freddie Mac Optigo SBL and Fannie Mae DUS Small, which together command roughly 70 to 80 percent of executions at this size in Miami. These agencies offer streamlined underwriting, 30-year amortization, and non-recourse structures that appeal to experienced sponsors, while a regional bank or credit union balance sheet remains a viable alternative for borrowers with strong banking relationships or slightly lower loan quality.

Capital Source Rate / Cost Size / LTV Notes
Agency (Freddie Mac Optigo SBL or Fannie Mae DUS Small) 6.00 to 6.40 percent fixed, 10-year Treasury plus 140 to 180 basis points $3M / 65 to 75 percent LTV Non-recourse, 30-year amortization, 10-year fixed-rate term, 1.20 DSCR covenant minimum, no prepayment penalty, fastest closing timeline (45 to 60 days)
Regional bank balance sheet 5.75 to 6.50 percent, floating or 5 to 7-year fixed $3M / 60 to 70 percent LTV Full or partial recourse, 25 to 30-year amortization, interest-only period up to 2 years common, flexibility on DSCR (1.00 to 1.15 typical), relationship-driven pricing
Credit union portfolio lender 5.90 to 6.35 percent, typically fixed $3M / 65 to 72 percent LTV Full recourse, 30-year amortization, faster loan decisions for members, preference for Miami-based assets, local underwriting reduces timeline to 30 to 45 days
Debt fund or alternative lender 7.00 to 8.50 percent, floating prime-based or fixed with higher basis $3M / 70 to 80 percent LTV Recourse, shorter amortization (15 to 20 years), bridge or construction-to-perm scenarios, reserve requirements and higher fees, faster deployment for time-sensitive deals

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 $3M Multifamily Refinance Deal

The typical $3 million refi borrower in Miami is an experienced multifamily operator with $10 to $50 million in net worth and a portfolio of 2 to 5 properties, most often located in South Florida. They are motivated by favorable rate windows, equity access for secondary acquisitions, or refinancing near maturity to reset terms and improve cash flow. These sponsors typically have strong banking relationships, credit scores in the 700 to 760 range, and the operational sophistication to maintain 1.20 to 1.35 DSCR through economic cycles.

From the CLS CRE Pipeline

A Real $3M Example

CLS CRE recently closed a $3.1 million, 10-year fixed refinance for a 28-unit garden-style multifamily asset in Wynwood, Miami, at 6.05 percent through an agency small-balance program. The property, built in 1998 and stabilized at 94 percent occupancy with average rents of $2,150 per unit, showed a 1.28 DSCR and 68 percent LTV at closing. The borrower, a repeat CLS client with a portfolio of four Miami-area multifamily assets, was refinancing off a 5/1 ARM maturing in eight months and sought certainty and prepayment flexibility. The non-recourse, 30-year amortization structure reset the loan term to 2054 and freed up $180,000 in equity for portfolio acquisitions.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$3M Multifamily Refinance Miami FAQ

Agency small-balance products typically close in 45 to 60 days from full application to funding, provided the property is stabilized and appraisal is straightforward. A regional bank or credit union may move faster, 30 to 45 days, if the borrower has an existing relationship and the deal meets their standard box. Debt funds and alternative lenders can close in 20 to 30 days but charge higher rates and fees.
Agency small-balance wins on rate and recourse terms, typically offering 50 to 75 basis points cheaper than regional banks, with non-recourse flexibility and longer amortization. Banks compete on speed, relationship pricing, and willingness to bend underwriting boxes for strong sponsors. For most borrowers, agency is the first choice; banks are reserved for off-box deals or rapid-close scenarios.
Agency lenders typically require 1.20 DSCR minimum and 75 percent LTV maximum, with optimal execution in the 1.25 to 1.40 DSCR and 65 to 72 percent LTV bands. Banks are flexible, accepting 1.00 to 1.15 DSCR and 60 to 75 percent LTV depending on sponsor strength and property cash flow stability. Debt funds will stretch to 80 percent LTV and lower DSCR, but with higher cost.
Wynwood, Midtown, Allapattah, Little Haiti, and Overtown have seen strong capital activity for small-balance refi, with average rents of $1,900 to $2,400 and stable occupancy above 90 percent. Coral Gables, Coconut Grove, and Brickell remain prime for higher-rent properties, though refi volume there skews larger due to asset prices exceeding $4 to $5 million. Emerging submarkets like Buena Vista and Edgewater are becoming competitive as Class-B supply stabilizes and rent growth attracts refinance volume.
Agency small-balance loans are fully amortizing; no IO period is available. Regional banks and credit unions often offer 1 to 2 years of interest-only as a concession for strong sponsors or to offset lower DSCR, but it adds 10 to 25 basis points to the all-in rate. Debt funds routinely structure IO periods of 3 to 5 years, reflecting their flexible, short-term credit approach.


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