Freddie Mac Multifamily Loan Options 

In 2017, Freddie Mac financed $73.2 billion in multifamily and apartment loans. Much like its sister company, Fannie Mae, Freddie Mac offers non-recourse, 30-year fixed rate loans with up to 80% leverage. 

FReddie MAC Apartment Loans

The Freddie Mac apartment loan is Freddie's most popular loan option, offering terms including: 

  • Loan Size: $1 million with no upper limit 
  • Loan Term: 5-30 year fixed-rate terms available 
  • Leverage: 80% maximum LTV allowance 
  • Rate locks: Yes, both early and extended available 
  • Recourse: Non-recourse (standard carve-outs apply) 
  • DSCR: Minimum 1.20- 1.25 DSCR 
  • Interest Options: Interest-only options available 

Freddie Mac Multifamily Small Balance Loan Program

In order to compete effectively with Fannie Mae, Freddie Mac introduced the Freddie Mac Multifamily Small Loan Program, which allows faster, more streamline processing. This program offers terms including: 

  • Loan Size:  Between $750,000 and $7 million 
  • Loan Purpose: Loan can be used for acquisition or refinance 
  • Unit Requirements: 5+ units
  • Leverage:
    • Top Markets: 80% maximum LTV allowance for purchases and refinances
    • Standard Markets: 80% maximum LTV allowance for purchases and refinances
    • Small Markets: 75% maximum LTV allowance for purchases, 70% for refinances
    • Very Small Markets: 75% maximum LTV allowance for purchases, 70% for refinances
  • Documentation: No tax return requirement 
  • Interest Options:
    • 20-year hybrid ARM with a 5, 7, or 10-year fixed-rate loan period
    • 5, 7, or 10-year fixed-rate loan
  • DSCR:
    • Top Markets: Minimum 1.20 DSCR 
    • Standard Markets: Minimum 1.25 DSCR
    • Small Markets: Minimum 1.30 DSCR 
    • Very Small Markets: Minimum 1.40 DSCR 
  • Assumability: Assumable (with lender approval and 1% fee)
  • Cash Out: Cash out refinances available 
  • Prepayment: Step down, yield maintenance, and soft step down options available 

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