The quick read: Four lender types write $3 million to $10 million cash-out refinances on stabilized Florida apartment buildings: the agency small-loan programs (Fannie Mae's Small Mortgage Loan, up to $9 million, and Freddie Mac's Optigo Conventional Small loan, generally $2 million to $10 million), banks, life insurance companies and DSCR portfolio lenders. The net check depends on how long you have owned the building, the insurance quote, storm-deductible rules, reserve deposits and Florida's mortgage taxes.
A cash-out refinance replaces the existing mortgage with a larger one and pays the owner the difference after the payoff and closing costs. This size band is where agency program edges bunch up: Fannie Mae's Multifamily Guide defines a Small Mortgage Loan as $9 million or less, Freddie Mac's Conventional Small term sheet covers loans of $10 million or less, and Freddie Mac's standard fixed-rate loan starts at a $10 million minimum. See the cash-out refinance loan overview for loan mechanics and the Florida market hub for the local market.
Which lenders do a $3 million to $10 million cash-out refinance on a Florida apartment building?
Four lender types do a $3 million to $10 million cash-out refinance on a stabilized Florida apartment building: the agency small-loan programs run by Fannie Mae and Freddie Mac, banks, life insurance companies, and DSCR portfolio lenders that size the loan on the property's debt service coverage ratio. Each one tests the cash-out, and the building, differently.
The Mortgage Bankers Association's August 6, 2026 release on second-quarter originations reported a 61% year-over-year increase in loans for depositories, a 17% decrease for government sponsored enterprises and a 27% decrease in life insurance company loans, while originations for multifamily properties rose 8%. The lender-type figures span every property type, so they describe the market, not a Florida apartment quote; the practical answer is one file in front of every type at once. For how agency lender networks work, see how Fannie Mae DUS and Freddie Mac Optigo lenders operate.
How much cash can Fannie Mae or Freddie Mac take out of a stabilized Florida property?
Fannie Mae and Freddie Mac limit a stabilized apartment cash-out in different ways: Freddie Mac's Optigo Conventional Small term sheet, which covers refinances, allows up to 80% loan-to-value at a 1.25x amortizing debt coverage ratio on seven-year and longer terms, while Fannie Mae's Multifamily Guide ties cash-out proceeds to how long the borrower has owned the property.
The same April 2026 term sheet lowers the ceiling to 75% on five-year to under-seven-year terms and to 65%–70% on full-term interest-only loans, and needs no separate refinance test when a loan carries at least a 1.40x amortizing debt coverage ratio and 60% or lower loan-to-value. Section 10.18 of Freddie Mac's Multifamily Seller/Servicer Guide adds the rule that matters most after a recent purchase: for a property acquired within 12 months of the full underwriting package, the loan is based on the lesser of the appraised value or the total acquisition cost (the purchase price plus permitted closing costs of no more than three percent of that price), so a higher appraisal does not lift the loan inside that window.
Fannie Mae's Multifamily Guide sets no single cash-out percentage in its cash-out section. Part II, Chapter 2, Section 205 requires the lender to document the hard equity remaining in the property's debt structure, how long the borrower has owned the property, and whether value rose because net cash flow increased rather than because the capitalization rate fell. Its support table says cash-out proceeds must "be commensurate with the length of the ownership period" and that property value must "have increased due to higher NCF over the ownership period."
For a Small Mortgage Loan, Part III, Chapter 9 of Fannie Mae's Guide also excludes cash-out proceeds from the liquidity test (post-closing liquid assets of at least 9 monthly principal-and-interest payments), requires combined net worth at least equal to the loan amount, and requires 90% physical occupancy for the 90 days before commitment on properties of 10 or more units.
What do banks, life insurers and DSCR portfolio lenders size a Florida cash-out on?
None of the pages cited here publishes a lender-specific cash-out limit for banks, life insurance companies or DSCR portfolio lenders, so their ceilings come from each lender's own credit policy; for banks, the Interagency Guidelines for Real Estate Lending say internal loan-to-value limits should not exceed 85% for improved property. Ask each lender for its limits in writing.
That 85% is a supervisory limit in the appendix to 12 CFR Part 34, Subpart D, which tells each institution to set its own internal limits at or below it. On a bank quote, ask for the internal cash-out loan-to-value limit, the minimum debt service coverage ratio, whether a personal guaranty is required and whether deposits must move.
For a life insurance company, ask for the maximum loan-to-value, the coverage or debt-yield floor and the prepayment formula before paying for third-party reports. A DSCR portfolio lender is named for its test, the property's debt service coverage ratio, so ask for its minimum ratio, its maximum cash-out loan-to-value and any seasoning period after purchase. If the building is not yet stabilized or was bought recently, compare a bridge loan; see how Florida multifamily bridge loans are sized.
What does Florida property insurance do to cash-out proceeds?
Florida property insurance shrinks cash-out proceeds because the premium is deducted from net cash flow before the loan is sized, and Fannie Mae's Multifamily Guide underwrites either a bona fide written quote for a new 12-month policy or a grossed-up current expense: 110% when less than six months remain on the policy, and 105% at six to twelve months.
That rule, in Part II, Chapter 2, Section 203.01, adds that where a property's area "is prone to Catastrophic Events," the lender must ensure the expense aligns with the market, and Fannie Mae's small-loan chapter bars blanket or bulk discounts, such as a blanket policy across several buildings: expenses must reflect the property on a stand-alone basis. Because a fresh written quote replaces the 105%–110% gross-up, price the renewal before the lender sizes the loan.
Prices in one part of the market have fallen: the Florida Office of Insurance Regulation's January 13, 2026 release said surplus lines customers are paying lower premiums, citing Florida Surplus Lines Association reports of cost reductions of 10% for commercial business and 47% for commercial windstorm and hail. That is a market-wide surplus-lines figure, not an apartment premium, and Fannie Mae's rule underwrites the property's own quote or current expense.
Coverage terms can disqualify a policy regardless of price. Freddie Mac's Multifamily Seller/Servicer Guide caps a percentage Named Storm deductible at 7.5 percent of the property's total insurable value, with a stated minimum not to exceed $100,000 on a property-specific policy (Section 31.7(d)); requires a state windpool policy to be written for no less than 100 percent of that value (Section 31.7(e)); and requires flood insurance on any income-producing building in a FEMA Special Flood Hazard Area zone prefixed A or V (Section 31.8).
Which reserves and escrows cut the net cash at closing?
Reserves and escrows cut the net cash in two places, the underwritten cash flow and any initial deposit at closing, and both agencies build them in: Freddie Mac's Conventional Small term sheet lists a tax and insurance escrow and a replacement reserve deposit as generally required, and Fannie Mae deducts a per-unit replacement reserve before computing coverage.
In Fannie Mae's Small Mortgage Loan chapter, the underwritten replacement reserve is the greatest of $200 per unit for a property condition rating of 1, $250 for a rating of 2, $300 for a rating of 3, or the Guide's reserve-chapter amount. Fannie Mae's small-loan chapter also bars delivery when estimated completion and repair costs exceed 10% of the unpaid principal balance, so a building with a long deferred-repair list may need the work done, or another lender type, first. Ask every lender for the estimated initial escrow and reserve deposits alongside the gross loan amount, and compare the net.
What Florida taxes come out of a cash-out refinance?
Florida levies two taxes on the new mortgage: documentary stamp tax of 35 cents on each $100 of indebtedness on a mortgage recorded in the state, under section 201.08 of the Florida Statutes, and a one-time nonrecurring tax of 2 mills on each dollar of the obligation secured by Florida real property, under section 199.133.
In percentage terms, 35 cents per $100 is 0.35% and 2 mills is 0.2%, both on the new loan amount, not just the cash taken out. If the existing lender is also bidding, ask the closing attorney about section 201.09, under which a qualifying renewal note that increases the unpaid balance is "taxable only on the face amount of the increase."
Property tax is the third line to check. For levies other than school district levies, section 193.1555 (covering nonresidential property and residential property outside the homestead section and section 193.1554, which covers nine or fewer dwelling units) limits each annual reassessment change to 10 percent of the prior year's assessed value, and reassesses at just value as of January 1 of the year after a change of ownership or control. Fannie Mae's Section 203.01 says to include any expected increase for "any Property whose sale would trigger an automatic reassessment," so ask each lender whether it underwrites your capped bill or a reassessed one.
How do rates and prepayment terms change the cash-out math?
Rates decide how much debt the cash flow carries, and prepayment terms decide what an early exit costs: Fannie Mae sizes small-loan debt service at the greater of the note rate or its underwriting floor, and its Guide says loan documents generally require the greater of 1% of the unpaid balance or yield maintenance before the yield-maintenance period ends.
Freddie Mac's term sheet calls the Treasury index "the most volatile part of the coupon," and an Index Lock may be available for qualifying sponsors and properties. The 10-year Treasury yield was 4.96% and the 5-year 4.83% as of September 22, 2026, according to the Federal Reserve Bank of St. Louis's FRED series DGS10 and DGS5. Freddie Mac's Conventional Small loan carries yield maintenance until securitization, a two-year lockout after it, then defeasance, with no premium in the final 90 days; step-down and yield maintenance without defeasance cost extra. For bank, life-company and DSCR portfolio quotes, get the prepayment schedule in writing and test it against your hold period.
How do the four lender types compare on a Florida apartment cash-out?
Comparing the four lender types on a Florida apartment cash-out means lining up four answers for each: the most it will lend against, the test that binds first, the prepayment structure and what sets the pace to closing. The table uses only limits stated on the cited agency and federal pages; other cells are questions for the lender.
Table: Florida apartment cash-out refinance, $3 million to $10 million, by lender type
| Lender type | Max cash-out basis | Binding test | Prepay | Speed driver |
|---|---|---|---|---|
| Agency: Fannie Mae Small Mortgage Loan (up to $9 million) | Proceeds "commensurate with the length of the ownership period"; hard equity remaining documented (Guide Sec. 205) | DSCR at the greater of note rate or underwriting floor; 90% occupancy for 90 days (10+ units); liquidity of 9 months' P&I, excluding cash-out | Greater of 1% of unpaid balance or yield maintenance before the yield-maintenance end date | Lease audit, property condition assessment and environmental screening (Guide Ch. 9) |
| Agency: Freddie Mac Conventional Small (generally $2 million to $10 million) | 80% LTV on 7-year-plus terms, 75% on 5-to-under-7-year terms; lesser of appraised value or acquisition cost if bought within 12 months | 1.25x amortizing DCR; refinance test unless 1.40x and 60% LTV | Yield maintenance, 2-year lockout after securitization, then defeasance; step-down at added cost | Spread lock for 60 days after application; standard loan documents without modifications |
| Bank | Internal policy; supervisory LTV limit of 85% for improved property | The bank's own DSCR and LTV policy; ask for both in writing | Ask for the schedule | Credit approval; ask for the committee date |
| Life insurance company | No limit on the cited pages; ask for the maximum LTV | Ask for the coverage or debt-yield floor | Ask for the formula | Ask for the approval timeline |
| DSCR portfolio lender | No limit on the cited pages; ask for the cash-out LTV cap and any seasoning rule | Property DSCR; ask for the minimum and the rate used | Ask for the schedule | Appraisal and rent-roll review; ask for the timeline |
Fannie Mae small-loan ceiling: $9 million original loan amount.
Freddie Mac Conventional Small range: generally $2 million to $10 million.
Freddie Mac rule for a purchase within 12 months: loan based on the lesser of appraised value or total acquisition cost.
Bank supervisory LTV limit for improved property: 85%.
Florida documentary stamp tax on a recorded mortgage: 35 cents per $100.
Florida nonrecurring intangible tax: 2 mills per dollar.
How do you get lenders competing for a Florida apartment cash-out refinance?
You get lenders competing for a Florida apartment cash-out refinance by sending one complete file (rent roll, trailing operating statement, a written insurance quote, the purchase date and the loan payoff) to a brokerage that screens it against every lender type at once. Submit your Florida cash-out refinance; YieldStack is a commercial mortgage brokerage, not a lender.
The intake is a 5-minute submit, matched against 20,000+ loan programs, with a median offer in under an hour, from an institutional lender. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed. Your balloon date or refinance deadline stays yours to set; a complete file is what lets lenders price against it.
The bottom line
A $3 million to $10 million cash-out refinance on a stabilized Florida apartment building can go to Fannie Mae's Small Mortgage Loan program, Freddie Mac's Optigo Conventional Small loan, a bank, a life insurance company or a DSCR portfolio lender. The agencies publish the rules that set the net check: ownership time and cost basis limit how much appreciation counts, a fresh written insurance quote avoids Fannie Mae's 105%–110% gross-up, storm deductibles and flood zones must meet Freddie Mac's insurance rules, and Florida's documentary stamp and intangible taxes apply to the new loan amount. Banks, life insurers and DSCR portfolio lenders set their own limits, so ask each the same questions in writing and compare net cash, not the headline rate.