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Freddie Mac Multifamily Loans
Freddie Mac provides a broad suite of loan solutions designed to support the acquisition, refinancing, or recapitalization of multifamily properties. Recognized for its flexibility and competitive terms, Freddie Mac is often the financing partner of choice for qualifying multi-family developments regardless of size or property type.
Whether you're investing in small-scale communities or large housing projects, Freddie Mac offers reliable, scalable financing to help bring your multifamily vision to life.
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Advantages / Disadvantages of Freddie Mac Loans
Advantages:
Freddie Mac’s multifamily loan programs offer a range of benefits that make them a strong choice for many property investors:
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Flexible Terms:
Loan options are available with terms ranging from 5 to 30 years, allowing borrowers to choose what works best for their investment timeline.
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Non-Recourse Financing:
Borrowers are not personally liable, offering added protection to all principals involved in the organization.
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Tailored Solutions for Specialized Housing:
Freddie Mac offers financing specifically designed for senior living, student housing, and affordable housing developments.
Disadvantages:
While Freddie Mac financing brings several key advantages, there are a few limitations to keep in mind:
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Property Size Restrictions:
Not available for smaller residential properties with 1–4 units.
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Limited Mixed-Use Flexibility:
Only select programs accommodate properties with both commercial and residential components.
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Prepayment Penalties:
Early loan payoff may result in financial penalties.
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Standard Rates and LTVs:
While competitive, interest rates and loan-to-value ratios may not always offer the most aggressive terms available in the market.
Freddie Mac Loan Programs
Freddie Mac Fixed-Rate Loans
One of Freddie Mac’s most versatile offerings, the Fixed-Rate Conventional Loan supports a wide range of multifamily housing projects — including affordable housing (Section 8 and certain LIHTC), senior living, student housing, and co-ops. Its flexible structure and streamlined 45-day commitment timeline make it ideal for time-sensitive acquisitions and refinancing.
Terms:
- Use: Acquisition or refinance
- Loan Amount: $5M – $100M+
- Term Length: Typically 5–10 years; up to 30 years available
- Leverage: Up to 75–80% LTV
- Recourse: Non-recourse with standard carve-outs
Best for: Projects requiring rapid funding or those that don’t qualify for more specialized programs.
Freddie Mac Floating-Rate Loans
Designed for short-term holds, Freddie Mac’s Floating-Rate Loans are ideal when a sale or refinance is planned within a few years. These loans offer competitive interest rates and greater flexibility — including allowance for mixed-use spaces — making them suitable for standard housing, student and senior housing, and manufactured housing (excluding affordable housing).
Terms:
- Use: Ideal as bridge financing or for transitional projects
- Loan Amount: $5M – $100M+
- Term Length: 5, 7, or 10 years
- Leverage: Up to 75–80% LTV
- Recourse: Non-recourse with standard carve-outs
Best for: Investors needing short-term financing with potential for sale or refinance.
Freddie Mac Small Balance Loans
Tailored for smaller multifamily properties, Small Balance Loans are a practical option for investors entering the multifamily space. Competitive rates and simple qualification criteria make this program a standout for 5–50 unit properties.
Terms:
- Use: Purchase or refinance
- Loan Amount: $1M – $7.5M ($7M+ in select markets)
- Term Length: 5–20 years
- Leverage: Up to 80% LTV
- Recourse: Non-recourse with standard carve-outs
Best for: Small to mid-size investors seeking efficient financing in high-value metro markets.
Freddie Mac Green Advantage Loans
For borrowers prioritizing sustainability, Green Advantage offers added benefits for improving energy or water efficiency. Compatible with most Freddie Mac multifamily programs, it includes incentives like increased LTV, lower DSCR, and a $3,500 Green Assessment rebate.
Terms:
- Use: Supplementary financing for green upgrades
- Loan Amount: Varies
- Term Length: 2 years to complete improvements
- Leverage: Up to 5% higher LTV
- Recourse: Non-recourse with standard carve-outs
Best for: Environmentally conscious investors seeking financial incentives and increased proceeds.
Freddie Mac Student Housing Loans
Built specifically for the growing student housing market, this program provides large-scale funding with favorable terms for eligible properties.
Terms:
- Use: Acquisition or refinance
- Loan Amount: $5M – $100M+
- Term Length: Typically 5–10 years; up to 30 years available
- Leverage: Up to 75–80% LTV
- Recourse: Non-recourse with standard carve-outs
Best for: Medium to large student housing developments.
Freddie Mac Senior Housing Loans
This program supports independent living, assisted living, memory care, and age-in-place communities. With high funding caps and tailored terms, it’s ideal for addressing the complex needs of senior living projects.
Terms:
- Use: Acquisition or refinance
- Loan Amount: $5M – $100M+
- Term Length: Typically 5–10 years; up to 30 years available
- Leverage: 70–75% LTV
- Recourse: Non-recourse with standard carve-outs
Best for: Specialized senior housing developers seeking customized funding solutions.
Freddie Mac Manufactured Housing Loans
Designed for high-quality manufactured home communities, this program supports acquisitions and refinances for qualified parks.
Terms:
- Use: Acquisition or refinance
- Loan Amount: $1M+
- Term Length: Typically 5–10 years; up to 30 years available
- Leverage: Up to 75–80% LTV
- Recourse: Non-recourse with standard carve-outs
Best for: Investors acquiring or enhancing mobile home parks or manufactured housing communities.
Freddie Mac Supplemental Loans
These loans provide added funding for improvements or cash flow needs after the original mortgage. Borrowers can opt for Split Supplemental (originated at the same time as the primary loan) or Seasoned Supplemental (originated 12+ months later).
Terms:
- Use: Supplemental capital needs
- Loan Amount: $1M+
- Term Length: May exceed primary loan term by up to 24 months
- Leverage: Up to 75–80% LTV
- Recourse: Non-recourse with standard carve-outs
Best for: Managing major improvements or cash flow enhancements after an initial Freddie Mac loan.
Freddie Mac FAQ’s
Freddie Mac, formally known as the Federal Home Loan Mortgage Corporation, offers a broad range of multifamily loan solutions designed to support commercial real estate investors in acquiring, refinancing, or upgrading income-producing properties.
These loans are tailored for residential properties with five or more units, whether within a single building or spread across multiple structures. For larger-scale developments, Freddie Mac loans can accommodate projects with virtually unlimited unit counts, though individual loan programs do have specific borrowing limits.
Each program comes with clear, non-negotiable eligibility criteria, ensuring consistency and transparency. However, with such a diverse suite of options — including loans for standard housing, senior living, student housing, manufactured communities, and environmentally focused developments — most qualified investors will find a suitable fit.
Freddie Mac multifamily loans are categorized based on factors such as interest rate type (fixed or floating), property use, and specialized lending programs. This structure gives borrowers the flexibility to choose the best financing strategy for their investment goals.
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