Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Agency Loan Program
Freddie Mac Multifamily Loans
Freddie Mac multifamily financing is one of several agency programs we arrange for apartment and multifamily properties nationwide. For 2026 the FHFA set Freddie Mac’s multifamily purchase cap at $88 billion, with at least half required to support mission-driven affordable housing. We place the full Freddie Mac Optigo suite, from Small Balance and large balance to a deep set of affordable-housing and specialty programs, each with its own page below. Compare today’s commercial mortgage rates.
Get a Free QuoteFreddie Mac Multifamily Rates & Terms
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 5.78% | 80% |
| 7 Year Fixed | 5.74% | 80% |
| 10 Year Fixed | 5.88% | 75% |
- Loan amounts from $1,500,000, SBL ($2M-$10M) and Optigo ($5M+)
- Loan-to-value up to 80% on purchases and 75% on refinances
- Fixed and floating rates, terms up to 30 years
- Non-recourse with standard carve-outs
- Cash-out refinancing available
- Minimum 1.25x debt-service-coverage ratio
Rates are indicative and update with the market. Your rate, LTV and amortization are set by underwriting.
Compare Freddie Mac Multifamily Options
Freddie Mac serves both ends of the multifamily market, and we structure whichever fits your property:
| Program | Typical rate* | Max LTV | Best for |
|---|---|---|---|
| Freddie Mac SBL / Conventional Small ($2M-$10M) | 6.14% | Up to 80% | Streamlined small-balance |
| Freddie Mac Optigo Conventional (over $5M) | 5.74% | Up to 80% | Larger, institutional multifamily |
Both are non-recourse with standard carve-outs. Most Freddie Mac multifamily loans require stabilized occupancy and a minimum 1.25x debt-service-coverage ratio.
Freddie Mac Multifamily Loan Programs
Freddie Mac offers one of the broadest multifamily platforms in the market. As a broker we place the full Optigo suite. Click any program for details:
Core conventional
- Large Balance: substantial rental properties from $5 million to $100 million and more, with competitive fixed and floating rates, high leverage and non-recourse terms.
- SBL / Conventional Small: smaller properties from $2 million to $10 million, fixed 5, 7, 10, 12 or 15 year terms, up to 80% LTV and streamlined two-report underwriting.
- Fixed-Rate Conventional: predictable long-term financing for stabilized properties, with terms up to 30 years and high loan-to-value.
- Floating-Rate: SOFR-based adjustable-rate financing, with interest-rate caps and conversion options for changing rate environments.
- Float-to-Fixed Rate: initial floating-rate financing with the option to convert to a fixed rate, capturing short-term savings and long-term stability.
- Lease-Up: permanent financing for newly built or renovated properties still in lease-up, before they reach full occupancy.
- Value-Add: financing for properties needing moderate renovation to raise income and occupancy, with interest-only during the work.
- Moderate Rehab: flexible financing for properties undergoing moderate renovations to enhance value and rental income.
- Supplemental: additional financing for existing Freddie Mac borrowers without refinancing the original loan.
- Structured Pool Transaction: finance multiple properties under a single structured transaction for better terms and simpler management.
Specialty property
- Manufactured Housing Community: acquire, refinance or improve manufactured housing communities, a growing and resilient sector.
- Manufactured Housing Resident-Owned Community: financing that helps residents purchase and manage their own community for long-term affordability.
- Student Housing: purpose-built and high student-occupancy properties near universities, with flexible terms and high LTVs.
- Student Housing Value-Add: renovation financing for student housing, with interest-only periods followed by permanent financing.
- Seniors Housing: independent living, assisted living and memory care communities, with flexible terms and high leverage.
- Green Advantage: reduced rates and increased loan proceeds for owners who commit to energy and water efficiency improvements.
Affordable housing & LIHTC
- HUD Section 8: specialized financing for Section 8 properties, supporting acquisition, refinance and rehabilitation with long-term affordability.
- Cash Loan for Affordable Housing Preservation: financing to maintain and preserve affordable housing for low-income communities.
- Non-LIHTC Forward: forward commitments for affordable developments that do not use Low-Income Housing Tax Credits.
- Tax-Exempt Loan (TEL): financing using tax-exempt bonds for affordable developments, lowering borrowing costs.
- Tax-Exempt Bond Securitization (TEBS): securitizes tax-exempt bonds into Freddie Mac-backed securities to add liquidity and lower cost for housing agencies.
- Bond Credit Enhancement with 4% LIHTC: credit enhancement for tax-exempt bonds paired with the 4% Low-Income Housing Tax Credit.
- Bond Credit Enhancement with Other Affordability Components: credit enhancement for bonds combined with additional affordability measures.
- LIHTC Enhancement: enhances financing structures that use Low-Income Housing Tax Credits, making funding easier to secure.
- 9% LIHTC Cash: financing for affordable projects using the 9% Low-Income Housing Tax Credit.
- Preservation Rehabilitation: preserve and rehabilitate aging affordable housing while keeping it affordable.
- Bridge to Resyndication: short-term bridge financing for affordable properties preparing for LIHTC resyndication.
- NOAH Preservation: financing to preserve Naturally Occurring Affordable Housing without government subsidies.
Capital markets & structured
- Seasoned Loan Pool Credit Enhancement: credit enhancement for pools of seasoned multifamily loans to improve liquidity and reduce risk.
- Seasoned Loan Securitization: securitizes pools of seasoned multifamily loans so investors can optimize their portfolios.
Freddie Mac Multifamily Benefits
- Long-term fixed and floating rates, up to 30 years
- High loan-to-value up to 80%
- Non-recourse with standard carve-outs
- Cash-out refinancing available
- Competitive, agency-driven pricing
Eligibility for Freddie Mac Multifamily Loans
Freddie Mac multifamily loans finance stabilized apartment properties of five or more units. Lenders generally look for:
- At least five residential units
- Stabilized occupancy and stable cash flow
- A minimum 1.25x debt-service-coverage ratio
- Solid borrower credit, experience and post-closing liquidity
- SBL prioritizes Low Income (LI) properties of 5 to 50 units
Freddie Mac Multifamily: 2026 Outlook
Freddie Mac continues to be a significant force in multifamily finance, supporting rental-housing stability across the country.
More capacity for 2026. The Federal Housing Finance Agency set Freddie Mac’s 2026 multifamily loan purchase cap at $88 billion, part of a combined $176 billion with Fannie Mae that is up about 20.5% from 2025.
Affordability focus. At least 50% of Freddie Mac’s multifamily business must be mission-driven, affordable housing, and loans financing workforce housing are excluded from the cap.
Why agency stays attractive. For stabilized apartments, Freddie Mac generally offers among the lowest long-term rates and non-recourse terms available.
Get Expert Guidance on Your Freddie Mac Loan
With more than 30 years of experience and relationships across agency, bank, CMBS, life company and private lenders, we help investors secure the right Freddie Mac program and compare it against every other option. There are no upfront application or processing fees, and we issue written pre-approvals within 48 hours at no cost or obligation.
What Our Clients Say
“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“I found selectcommercial.com and saw they specialized in apartment building loans. In the end, they were by far the best company I have used. Next time I know who to call first.”
Jerry T. · Long Island, NY“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York CityGet Your Freddie Mac Rate Quote
No cost, no obligation. Written answers within 48 hours on multifamily loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up