Permanent financing is long-term multifamily debt (typically 5-30 years) used for stabilized properties. Sources include agency (Fannie Mae, Freddie Mac), banks, insurance companies, and CMBS.
Permanent financing underwrites against stabilized NOI with specific DSCR, LTV, and amortization requirements. Rates typically lower than bridge financing; terms longer. Prepayment penalties (defeasance or yield maintenance) are standard for fixed-rate loans. For LA multifamily sellers, understanding the buyer's permanent financing math matters — it's what determines how much they can pay.
LA multifamily permanent financing in 2026: agency (Fannie/Freddie) rates for stabilized properties typically 6.5-7.5%. Terms 5-10 year fixed. 30-year amortization. LTV 60-75% depending on property profile and DSCR. More conservative than 2021.
Thinking about selling? Get a no-obligation evaluation on your building.
Request Free Evaluation →