$5M Multifamily Refinance Miami | Commercial Lending Solutions 
Loan Size Example

$5 Million Multifamily Refinance in Miami

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million multifamily refinance in Miami represents the sweet spot for agency execution, where borrowers can access stable 10-year fixed debt at competitive rates without the operational or financial complexity of larger portfolios. Miami's multifamily market remains tight, with strong rent growth and occupancy supporting refinances even on properties with moderate value-add components. At this loan size, you're typically looking at 65 to 75 percent LTV, 1.20 to 1.35 DSCR, and rates in the 5.75 to 6.10 percent range depending on property quality and sponsor strength. This is the volume sweet spot where both agency lenders and smaller balance specialists compete aggressively.

Get a Quote on Your $5M Deal →
Capital Stack

What a $5M Multifamily Refinance Capital Stack Looks Like

Freddie Mac Optigo Small Balance and Fannie Mae DUS Small are the dominant capital sources for $5 million Miami multifamily refinances, largely because their streamlined underwriting and flexible prepay terms align perfectly with mid-market sponsors who want certainty and speed. A regional bank balance sheet or life company can also execute here, but agency execution is the default choice for most borrowers seeking 10-year fixed rates and full amortization without recourse.

Capital Source Rate / Cost Size / LTV Notes
Freddie Mac Optigo Small Balance 5.75 to 6.05 percent fixed 10-year $5M / 70 percent LTV Full amortization, 25-year term, non-recourse, 1 percent origination, streamlined underwriting, 40 to 50 day close
Fannie Mae DUS Small 5.80 to 6.10 percent fixed 10-year $5M / 70 percent LTV Full amortization, 25-year term, non-recourse, 1.25 percent origination, flexible property types, 45 to 60 day close
Regional bank balance sheet 5.90 to 6.25 percent fixed 10-year $5M / 65 to 70 percent LTV Full or partial recourse possible, faster close (25 to 35 days), relationship-driven pricing, local market expertise
Life company 6.00 to 6.35 percent fixed 10-year $5M / 55 to 65 percent LTV Lower leverage, 60 to 90 day close, interest-only periods available, preference for stabilized assets, subordination typically required

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 $5M Multifamily Refinance Deal

The typical $5 million Miami multifamily refinance borrower is an experienced operator or local developer with 2 to 5 properties in portfolio and net worth of $2 to $5 million, often based in South Florida. These sponsors are refinancing to take cash out for another acquisition, reduce rates on a previous bridge, or extract equity after value-add work on a recently stabilized asset. Many have conducted 1 to 2 prior agency transactions and view the refinance as a holding vehicle that allows them to redeploy capital into new development or acquisition opportunities.

From the CLS CRE Pipeline

A Real $5M Example

CLS CRE closed a $4.85 million Freddie Mac Optigo refinance on a 48-unit garden-style property in the Wynwood submarket in early 2025. The borrower had owned the asset for 3 years, completed modest interior renovations, and achieved 94 percent occupancy with average rents of $2,100. The loan structured at 71 percent LTV, 1.28 DSCR, and 5.92 percent fixed 10-year generated $850,000 in cash-out proceeds for the sponsor to fund a down payment on a 65-unit acquisition in Allapattah. Agency pricing and non-recourse terms were critical to the borrower's underwriting, and the 48-day close fit the sponsor's acquisition timeline.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$5M Multifamily Refinance Miami FAQ

Miami properties should be running 90 percent or higher occupancy and generating 1.20 to 1.35 DSCR to access agency pricing in the 5.75 to 6.10 percent range. If DSCR dips below 1.20, expect rate bumps of 25 to 50 basis points or leverage reductions that claw back cash-out proceeds. Fully stabilized Class B or C assets with good rent rolls and minimal tenant turnover will meet agency standards most consistently.
Hurricane and flood history can trigger additional environmental review, especially for properties in coastal areas or flood zones near Biscayne Bay, adding 1 to 2 weeks to underwriting. Condo-conversion exposure or properties in buildings with high insurance costs may also require subordination or rate adjustments. Local property tax reassessments after recent renovations can reduce cash flow temporarily, so ensure NOI is locked in before application.
Freddie Mac Optigo and Fannie Mae DUS Small loans are both non-recourse and offer a 1-year lockout followed by declining yield maintenance or 1 percent prepay penalty through year 10, making them much more flexible than life company debt. Regional banks may offer par prepay after year 3 or 5 if you negotiate it upfront, but expect slightly higher rates in return. Life company loans typically carry 5 to 10-year yield maintenance, so prepay flexibility should be clarified before commitment.
Freddie Mac Optigo typically closes in 40 to 50 days, Fannie Mae DUS Small in 45 to 60 days, regional banks in 25 to 35 days, and life companies in 60 to 90 days. The main variables are appraisal turnaround (10 to 14 days in Miami), title work (5 to 7 days), and lender document review (7 to 10 days). Plan for 70 to 80 days total if you include broker pre-underwriting and application preparation.
Agency lenders (Freddie and Fannie) require seasoning of at least 6 months of ownership or 6 months of operating history on an acquisition before they will allow cash-out; life companies and regional banks may be more flexible but often want 9 to 12 months. If you're inside that window, you can still do a rate-and-term refinance to lock in lower debt service, then revisit cash-out after seasoning is satisfied.


Get a Quote on Your $5M Deal

Tell us about your transaction. We will run it past lenders that actively fund this size and product type and send back terms within 48 hours.

Apply for Financing →
Or call us: 310.708.0690

Weekly Market Intelligence

Rate updates, deal insights, and capital markets analysis. One email per week. Unsubscribe anytime.

No spam. No selling your data. Just market intelligence from a working broker.

Need financing? Apply in 2 minutes. Response within 24 hours.
Apply Now →
📈

Before You Go…

Get matched with the right lender from our network of 1,000+ capital sources.

Or call us: 310.708.0690

No spam. Unsubscribe anytime.