Freddie Mac Multifamily Loan

Last Updated: 03/24/2024

Loan Highlights

Commercial real estate investors, developers, or property owners seeking financing for multifamily properties.
Borrowers interested in long-term, fixed-rate financing with competitive terms and flexible options.
Suitable for borrowers looking to acquire or refinance stabilized multifamily properties with five or more units.
Freddie Mac Multifamily Loans offer attractive financing options for investors targeting multifamily properties.
Ideal for investors or property owners seeking long-term, fixed-rate financing, with options for both acquisitions and refinancing.
Ranges from $1 million to several million dollars, depending on property value, location, and borrower qualifications.

Federal Fund Rate + 1.50% Margin

*The mortgage interest rate calculation above is estimated. The subject borrower for that interest rate is as follow:

Fixed-rate financing with terms typically ranging from 5 to 30 years.
Loan-to-value (LTV) ratio varies but is typically up to 80% for acquisitions and 75% for refinancing.
Amortization period up to 30 years.
Competitive interest rates based on market conditions and borrower qualifications.
Non-recourse financing available in certain cases.

Stabilized properties: Properties with a history of stable occupancy and cash flow.
Borrower experience: Lenders may require borrowers to have experience in multifamily property ownership or management.
Property condition: Properties must meet Freddie Mac’s eligibility criteria, including minimum property condition standards.
Environmental and zoning compliance: Properties must comply with environmental regulations and local zoning requirements.
Documentation:
- Typical Documents: Full documentation (full docs) including property income and expense statements, rent rolls, tax returns, financial statements, and property appraisals.
- Borrowers may also need to provide business plans and projections for acquisitions or renovations.

Fannie Mae Multifamily Loans: While similar to Freddie Mac Multifamily Loans, each program may have slightly different terms, requirements, and eligibility criteria.
Commercial Mortgage-Backed Securities (CMBS) Loans: Offered by private lenders, CMBS loans pool loans secured by commercial properties, including multifamily properties, and sell them as securities to investors.

Fannie Mae and Freddie Mac provide liquidity by purchasing mortgages.
Private lenders, banks, credit unions, and mortgage companies also originate and fund conventional loans.

Difference from Fannie Mae Multifamily Loans:
- Underwriting standards: While both Fannie Mae and Freddie Mac offer multifamily loan programs, their underwriting standards and eligibility criteria may vary slightly. Borrowers should carefully review and compare the requirements of each program to determine which best suits their needs.
- Loan terms: While both programs offer long-term, fixed-rate financing, specific loan terms, interest rates, and fees may differ between Fannie Mae and Freddie Mac multifamily loans. Borrowers should compare quotes from lenders offering both programs to ensure they secure the most favorable terms.
- Program availability: Some lenders may offer both Fannie Mae and Freddie Mac multifamily loan programs, while others may specialize in one or the other. Borrowers should research lenders and inquire about their experience with both programs to find the best fit for their financing needs.