Chicago Freddie Mac Multifamily Loan
Chicago Freddie Mac Multifamily Loan Rates Over $6,000,000 | Rates (start as low as) | LTV | |
---|---|---|---|
Multifamily 5 Year Fixed Loan Rates | 5.24% | Up to 80% | Get Free Quote |
Multifamily 7 Year Fixed Loan Rates | 5.37% | Up to 80% | Get Free Quote |
Multifamily 10 Year Fixed Loan Rates | 5.46% | Up to 80% | Get Free Quote |
Chicago Freddie Mac Multifamily Loan Rates Under $6,000,000 | Rates (start as low as) | LTV | |
Multifamily 5 Year Fixed Loan Rates | 5.70% | Up to 80% | Get Free Quote |
Multifamily 7 Year Fixed Loan Rates | 5.83% | Up to 80% | Get Free Quote |
Multifamily 10 Year Fixed Loan Rates | 5.92% | Up to 80% | Get Free Quote |
Chicago Freddie Mac Multifamily Loan Benefits
Chicago Freddie Mac Multifamily loan rates start as low as 5.46% (as of July 5th, 2025)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multifamily
• Terms and amortizations up to 30 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
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Freddie Mac is a government sponsored agency that offers incredible financing solutions to investors looking for apartment loans. They provide both fixed rate and floating rate multifamily loans to acquire or refinance a wide variety of multifamily properties. These apartment building loans are used to finance properties such as market-rate apartments, student housing, senior housing, and affordable housing. While Freddie Mac has always been one of the industry's most aggressive financing source for larger apartment loans, Fannie Mae used to really dominate the smaller balance market. However, in 2014, Freddie Mac launched their Freddie Mac Small Balance Multifamily Loan program to compete with Fannie Mae in the small balance market. For eligible borrowers, Chicago Freddie Mac Multifamily loans offer some of the best terms and rates in the market. However, qualifying for Freddie Mac loans requires that the borrower and property both meet a high standard set by Freddie Mac. Borrowers must typically meet a threshold for net worth and liquidity and properties must be cash flowing with at least 90% occupancy for 90 days.

Freddie Mac’s Chicago Multifamily Loan Programs offer many unique and beneficial features for apartment purchases and refinances, with a minimum loan size of $1,500,000. The loan application process is simple and streamlined. As an example, tax returns for the borrower and the property are not required. Loans typically close in 45 days and the program has much lower costs than other government or agency programs. These apartment building loans are non-recourse, which means that the borrower is not required to guarantee payments personally. Prepayment penalties are flexible, ranging from yield maintenance to soft stepdown. Perhaps the best feature of these multifamily loans is that Freddie Mac offers a free rate hold for 45 days from application. If rates change during the processing period, the loan rate is automatically held from the date of application.

Freddie Mac has a publicly stated mission to help maintain stability in the American housing-mortgage markets. Additionally, their goal is to both keep the housing market well-financed and to promote affordable housing. Freddie Mac accomplishes this goal by helping investors to purchase, refinance, preserve, and renovate existing multifamily and apartment buildings. A large portion of the properties financed by Freddie Mac are more than 10 years old, need significant improvements and have a hard time procuring financing with other lenders. Freddie Mac’s main focus in the multifamily arena is affordable housing. Around 90 percent of their apartment loans are written for properties with affordable rents (based on local area median income). Over the years the number of renters has continued to grow leading to a short supply of available affordable apartment units. Many of Freddie Mac’s programs were designed with this challenge in mind. They focus on financing apartment buildings that are affordable to renters with lower annual incomes. They also write apartment building loans for subsidized housing that assists individuals with very low (below average) incomes. Through these programs, Freddie Mac’s multifamily loan programs are playing a crucial role in ensuring that Americans have access to affordable housing throughout the country.

One potential complication with Chicago Freddie Mac multifamily loans is that Freddie Mac does not directly originate their loans. Rather they rely on authorized lenders from within their Optigo network to underwrite and service their loans. While these apartment loans may be financed by outside lenders, they all must conform to Freddie Mac guidelines. While Freddie Mac offers loans in varying markets for many different situations, each Optigo lender may have their own limitations on eligible deals they are willing to finance. At Select Commercial Funding, we have access to a wide array of Freddie Mac funding solutions so we can help to connect you with the right Freddie Mac lenders for your specific needs.
Freddie Mac Small Balance Multifamily Loan Highlights
Loan Amount
$1,500,000 - $6,000,000, up to $7,500,000 in large markets
Loan Purpose
Purchase or refinance, including cash out refinances
Amortization
Up to 30 years
Property Types
Apartment buildings of 5+ units, senior housing (with no resident services), apartment buildings with commercial space, properties with tenant-based housing vouchers, etc.
Debt Service Coverage
1.20x in top markets, 1.25x nationwide
Maximum Loan to Value
80% in top markets, 75% nationwide
Loan Terms
5, 7, and 10 year fixed rate options. After fixed rate period loan can either mature or convert to an adjustable rate (hybrid adjustable) at borrower option.
Recourse
Non-Recourse, with standard carve-out provisions
Credit Score
Minimum of 650
Interest Only
Typically, 1-3 years of interest only are offered with slight adder to rate. Full term I/O might be available on lower leverage loans.
Occupancy
Minimum occupancy of 90% for previous 90 days
Taxes/Insurance
Escrows for taxes and insurance may be waived on lower leverage transactions
Replacement Reserves
Not usually required
Rate Lock
Rate held for 45 days from application without additional fee. No worries that rate will rise during the application period.
Adjustments
Annual and lifetime caps on all adjustments (on hybrid/adjustable option)
Assumable
Yes
Prepayment Penalties
Yield maintenance, step-down and soft step-down options available
The Freddie Mac SBL program offers a combination of benefits and features not available anywhere else. Whether your objective is to buy additional property, get a lower rate on an existing loan, or take cash out of an existing property, Freddie Mac has the strength and expertise to get you to the closing table faster than most other lenders.