Government-Sponsored Multifamily Loans (Freddie Mac & Fannie Mae)

What is a Government-Sponsored Multifamily Loan?

The government sponsors two companies that provide much of the underlying support of the multifamily housing market.  Both Freddie Mac and Fannie Mae provide liquidity, stability, and affordability to borrowers that are looking to invest in multifamily properties.  They finance a wide range of loan sizes starting around $1,000,000.  These companies purchase loans from originating institutions.  The loans are pooled together as a mortgage-backed security and then are sold to investors in a process that's similar to what happens with a CMBS loan.  

These loans are guaranteed by the United States government.  As a result, the government has certain rules and guidelines that must be adhered to in order for a given multifamily property to qualify.  The government wants to ensure that there is adequate housing for students, single professionals, working families, senior citizens, and those that need subsidized housing.  The terms on these types of loans can go out to 30 years and be structured with fixed or adjustable interest rates.

 

What properties are a good fit for Freddie Mac or Fannie Mae?

  • HUD Section 8 eligible
  • Manufactured Housing
  • Student Housing
  • Senior Housing
  • Mixed-Use Development

 

Vista Commercial Capital can help you with your Government-Sponsored Multifamily Loan needs

If you have an opportunity that you'd like to review with us where a government-sponsored multifamily loan might be a good fit, we'd be happy to set up some time to have a discussion.