freddie mac multifamily loans

Freddie Mac Multifamily Loans

Grow Your Multifamily Real Estate Portfolio with Freddie Mac Loans

Looking to grow your multifamily real estate portfolio? Freddie Mac loans offer reliable, government-backed financing with competitive rates and flexible terms. Whether you're acquiring, refinancing, or upgrading properties, Freddie Mac’s programs can help you scale with confidence.

What Are Freddie Mac Loans?

Freddie Mac (Federal Home Loan Mortgage Corporation) is a government-sponsored enterprise (GSE) that supports the U.S. housing market by purchasing mortgages, ensuring liquidity, and promoting affordable housing. Its multifamily loan programs offer dependable financing solutions for real estate investors and developers.

Key Freddie Mac Loan Terms

  • Loan Amounts: $1M–$200M+; Small Balance Loans (SBL) from $750K–$7.5M
  • Loan-to-Value (LTV): Up to 80% (higher for affordable housing)
  • Debt Service Coverage Ratio (DSCR): Typically 1.20–1.50x
  • Amortization: Up to 30 years, interest-only options available
  • Loan Terms: 5, 7, and 10-year fixed; hybrid ARMs; 30-year non-securitized options
  • Recourse: Mostly non-recourse with standard carve-outs
  • Assumability: Loans may be assumable with lender/GSE approval
  • Rate Lock: Early rate lock available (60–120 days), including index lock

Borrower Requirements

  • Experience in owning/managing multifamily properties
  • Entity Structure: Use of a Single Purpose Entity (SPE), such as an LLC or LP
  • Financial Strength: Strong liquidity and net worth relative to loan size
  • Creditworthiness: Proven credit history

Freddie Mac Multifamily Loan Programs

Program TypeEligible PropertiesKey Benefits
Conventional LoansMarket-rate apartments, co-ops, mixed-useFlexible terms, fixed/hybrid rates, non-recourse
Small Balance Loans5+ units, up to $7.5MStreamlined process, reduced documentation
Targeted AffordableLIHTC, Section 8, workforce housingHigh LTVs, volume cap exemptions
Student HousingNear qualified universitiesCustomized leases, student-specific underwriting
Senior HousingAssisted living, memory care, etc.Flexible terms, tailored to care levels
Green AdvantageProperties with energy/water upgradesIncentives for sustainability, lower rates
Cash-Out RefinanceProperties with equityAccess capital for reinvestment, subject to limits

 

Why Choose Freddie Mac Multifamily Loans?

  • GSE-backed reliability
  • Non-recourse protection
  • Custom loan solutions
  • Flexible underwriting
  • Attractive pricing for green and affordable projects

Get Expert Help with Freddie Mac Financing

Whether you're a first-time investor or an experienced operator, we can help you navigate Freddie Mac loan options tailored to your goals.

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