Freddie Mac Multifamily Guide

Freddie Mac Multifamily Market Finder

Find Freddie Mac Small Balance Loan (SBL) and Conventional program loan rates, loan amounts and program guidelines specific to your market. Click here to find your city.

What is Freddie Mac?

The Federal Home Loan Mortgage Corporation, known as Freddie Mac, was created by Congress in 1970 to provide liquidity and affordability in the U.S. housing market. Freddie Mac is considered a government sponsored entity. Freddie Mac does not lend directly to borrowers. Their primary activity is to buy residential mortgage loans originated and underwritten by lenders according to their guidelines. They then package these loans as securities for sale to investors in the capital markets.

Freddie Mac Multifamily Loans

Freddie Mac Multifamily is a major participant in the multifamily lending market. In 2020 Freddie Mac funded $83 billion in multifamily loans, accounting for approximately 27% of total multifamily lending, according to the Mortgage Bankers Association. Freddie Mac Multifamily supports the acquisition, refinance and rehabilitation of multifamily properties through their different multifamily loan programs.

Freddie Mac Multifamily Programs

Small Balance Loan (SBL)

The Freddie Mac Small Balance Loan (SBL) program is designed for 5-50 unit multifamily properties nationwide, with loans from $1 million to $7.5 million (or $6 million in smaller markets). The SBL program is very targeted to basic multifamily property types and has a streamlined process with low rates with reduces fees. For detailed program information and loan rates, see our guide to the Freddie Mac Small Balance Loan (SBL) program.

Conventional Loan

The Freddie Mac Multifamily Conventional loan program is designed for bigger multifamily properties, with larger loan amounts and also lends on different multifamily property types like manufactured housing, senior housing and student housing. This program supports other transaction types like rehabilitation and stabilization and has greater flexibility in loan terms and loan structure. A major advantage to this program are its extremely competitive rates.

7 Benefits of Freddie Mac Multifamily

Low Rates - Freddie Mac Multifamily programs are extremely competitive on rates, often competing aggressively with some of the largest non-agency lenders.
Non-recourse - Freddie Mac Multifamily loans are all non-recourse, therefore no personal guarantees are required and the obligations of the debt are limited to the borrowing entity (except for standard carve-outs).
No Tax Returns - Freddie Mac Multifamily loan submissions do not require tax returns. Property specific items like operating statements and a current rent roll along with resumes and personal financial statements of the sponsors are used to determine qualification.
Interest-Only Payment Option - Freddie Mac Multifamily loan programs offer a variety of interest-only payment options depending on leverage, allowing borrowers to improve their cash flow.
All Markets - Freddie Mac Multifamily loan programs will lend in all markets in the U.S., therefore a great option for properties in smaller or less serviced markets.
Maximum Leverage - Freddie Mac Multifamily loan programs offer loans up to 80% leverage depending on loan size and market.
Long Term Fixed Rates - The Freddie Mac Small Balance Loan (SBL) program offers fixed rate terms of up to 10 years and their Conventional multifamily loan program offers fixed rate terms of up to 30 years.

Freddie Mac Affordability Discounts

Because Freddie Mac's mission is to support affordable housing, their multifamily programs have excellent rate discounts for properties that meet affordability requirements. These rate discounts can reduce loan rates up to 0.40%.