Freddie Mac
Freddie Mac Multifamily Loans
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Freddie Mac provides a diverse portfolio of multifamily loan products for the acquisition and recapitalization of residential properties. For projects that meet program requirements, Freddie Mac is often the preferred financing option, widely used to purchase or refinance both small and large multifamily housing across a variety of property types.
Common Freddie Mac Multifamily Loan Terms
Loan Amount:
$1 million+
Duration:
5–30 years (fixed-rate)
Leverage:
Up to 80% LTV
Recourse:
Non-recourse (basic carve-outs)
Prepayment:
May apply if repaid early
Rate Locks:
Early and extended options available
Borrower Requirements:
- Net worth at least equal to full loan amount
- Minimum total liquidity of 10% of the borrowed amount (excluding retirement accounts)
Advantages of Freddie Mac Loans
Flexible Terms: 5–30 years depending on program
Non-Recourse: Applies to all principals
Specialized Multifamily Financing: Programs for senior, student, and affordable housing
Disadvantages of Freddie Mac Loans
Property Size Restrictions: Cannot finance smaller 1–4 unit properties
Limited Mixed-Use Options: Only select programs accommodate mixed-use developments
Prepayment Penalties: May apply if paid off early
Rates & LTV: Generally standard; not exceptionally high
Life Insurance Loan Highlights
Freddie Mac Fixed-Rate Loans
One of the most flexible Freddie Mac programs, suitable for standard, affordable (Section 8/LIHTC), senior, student, and cooperative housing. Commitments often issued within 45 days.
Terms:
- Use: Acquisition & refinancing
- Amount Borrowed: $5–100 million
- Duration: 5–10 years (possible 30 years)
- Leverage: 75–80% LTV
- Recourse: Non-recourse (basic carve-outs)
- When to Use: Fast commitment needs or projects not qualifying for other programs
Freddie Mac Floating-Rate Loans
Ideal for short-term, bridge, or multi-use projects. Offers low initial rates with adjustable terms.
Terms:
- Use: Short-term or bridge financing
- Amount Borrowed: $5–100 million
- Duration: 5, 7, or 10 years
- Leverage: 75–80% LTV
- Recourse: Non-recourse (basic carve-outs)
- When to Use: Temporary financing before refinancing or sale
Freddie Mac Small Balance Loans
Finances smaller multifamily properties (5+ units), often more affordable than private options.
Terms:
- Use: Acquisition & refinancing
- Amount Borrowed: $1–7.5 million
- Duration: 5–20 years
- Leverage: Up to 80% LTV
- Recourse: Non-recourse (basic carve-outs)
- When to Use: Smaller multifamily investments, especially in high-cost metro areas
Freddie Mac Green Advantage Loans
An environmentally focused program that complements other Freddie Mac loans. Requires a “Green Assessment” and commitment to reduce water/sewage usage by 25%. Rebates up to $3,500 available.
Terms:
- Use: Rebate and improved loan terms
- Amount Borrowed: Varies
- Duration: 2 years for improvements
- Leverage: +5% LTV
- Recourse: Non-recourse (basic carve-outs)
- When to Use: To enhance property sustainability and combine with other incentives
Freddie Mac Student Housing Loans
Designed for mid-to-large student housing properties. Supports acquisitions or refinancing.
Terms:
- Use: Acquisition & refinancing
- Amount Borrowed: $5–100 million
- Duration: 5–10 years (possible 30 years)
- Leverage: 75–80% LTV
- Recourse: Non-recourse (basic carve-outs)
- When to Use: Student housing projects of significant size
Freddie Mac Senior Housing Loans
Supports independent living, assisted living, skilled nursing, memory care, and age-in-place properties.
Terms:
- Use: Acquisition & refinancing
- Amount Borrowed: $5–100 million
- Duration: 5–10 years (possible 30 years)
- Leverage: 70–75% LTV
- Recourse: Non-recourse (basic carve-outs)
- When to Use: Senior housing requiring specialized financing
Freddie Mac Manufactured Housing Loans
Finances multi-unit manufactured housing developments. Ideal for mobile home communities.
Terms:
- Use: Acquisition & refinancing
- Amount Borrowed: $1 million+
- Duration: 5–10 years (possible 30 years)
- Leverage: 75–80% LTV
- Recourse: Non-recourse (basic carve-outs)
- When to Use: Long-term financing for manufactured housing with a manageable DSCR
Freddie Mac Supplemental Loans
Provides additional funding for expenses beyond the primary mortgage. Can originate simultaneously or at least 12 months after the primary loan.
Terms:
- Use: Supplemental financing for major repairs or improvements
- Amount Borrowed: $1 million+
- Duration: May extend 24 months beyond the primary loan
- Leverage: 75–80% LTV
- Recourse: Non-recourse (basic carve-outs)
- When to Use: Unexpected costs, major improvements, or cash flow management
Freddie Mac Multifamily Loans FAQ’s
What Are Freddie Mac Multifamily Loans?
The Federal Home Loan Mortgage Corporation (Freddie Mac) has a variety of commercial real estate loan programs available, including programs for both single-unit and multifamily housing.
The multifamily loan programs that Freddie Mac offers are generally for structures that have five or more units, which may be in a single building or spread out across multiple structures. Loans are also available for much larger projects, with no real maximum on the number of units a project can have. (Programs have maximum amounts that can be borrowed.)
All of Freddie Mac’s loan programs have certain requirements that must be met, and there isn’t room for negotiation on requirements. Most real estate investors are able to qualify for at least one of the programs, however, because there are so many different multifamily financing options available.
The government-sponsored agency’s various programs can be categorized according to interest rate structure, type of housing, and specialized programs.