Freddie Mac Agency Loans

Freddie Mac is the second of the two government-sponsored enterprises (GSEs) providing liquidity to the multifamily mortgage market. Through its Optigo network of approved lenders, Freddie Mac purchases and securitizes multifamily loans, offering pricing and structure comparable to Fannie Mae but with different product variations and underwriting nuances. For many deals, both Fannie and Freddie are quoted, and the right execution is selected based on whichever agency comes back with the stronger combination of rate and structure for that specific property.

Why agency lending

• Non-recourse structure. Standard Freddie Mac loans are non-recourse to the sponsor with standard carve-outs.
• Competitive pricing. Freddie Mac execution is typically priced very competitively with Fannie Mae; the right choice between them depends on specific deal characteristics.
• Hybrid ARM options. Freddie offers structured hybrid ARM products that Fannie does not, useful for borrowers who want some floating-rate flexibility within a longer-term loan.
• Product depth. Multiple variations covering conventional fixed, floating, small balance, lease-up, value-add, affordable, and specialty properties.
• Streamlined small-balance execution. The SBL program offers a particularly streamlined path for loans in the $2M–$10M range.

Loan options within this program

Freddie Mac Conventional Fixed-Rate Loan

Freddie Mac’s flagship fixed-rate product, long-term fixed-rate financing for stabilized multifamily properties. Direct competitor to the Fannie Mae Fixed-Rate Loan; the choice between them depends on which agency comes back with stronger terms on the specific deal.

• Loan amounts from approximately $1M up to no stated cap
• LTV up to 80% (varies by product and market)
• DSCR 1.25x – 1.40x typical
• Terms of 5, 7, or 10 years (longer terms available with prepayment flexibility)
• Amortization up to 30 years
• Non-recourse with standard carve-outs
• Yield maintenance or defeasance prepayment

Freddie Mac Conventional Floating-Rate Loan

The floating-rate companion to the Fixed-Rate Loan, equivalent in role to Fannie Mae’s SARM. Used for borrowers prioritizing rate flexibility, shorter holds, or value-add business plans where a refinance is expected during the term.

• Floating rate, typically tied to SOFR plus a spread
• Interest rate cap required
• Terms of 5, 7, or 10 years
• Amortization up to 30 years
• Non-recourse with standard carve-outs

Freddie Mac Conventional Small (SBL)

A streamlined program for small-balance multifamily loans, with hybrid ARM options and lighter documentation requirements than the Conventional Fixed-Rate product. Designed specifically for the $2M–$10M loan range, with execution timing that’s typically faster than full-process agency.

• Loan amounts $2 million to $10 million
• LTV up to 80% (varies by market tier)
• DSCR 1.25x – 1.40x baseline program floor
• Hybrid ARM options (5/5, 7/5, 10/5) in addition to structured fixed-rate programs
• Terms of 5, 7, 10, 12, or 15 years
• Step-down or yield maintenance prepayment
• Non-recourse execution with standard bad-act carve-outs

Freddie Mac Lease-Up Loan

Bridge-to-permanent financing for newly constructed or repositioned properties still in lease-up. Provides agency-rate execution at a stage when properties typically have to use bridge debt, with conversion to permanent agency financing built into the structure once stabilization is achieved.

• For properties in active lease-up, not yet at stabilized occupancy
• LTV up to 75% (varies by property type and program)
• Conversion to permanent Freddie execution at stabilization
• Non-recourse at permanent conversion

Freddie Mac Value-Add Loan

A structured loan for light value-add business plans, properties where the sponsor will invest capital to improve units, raise rents, and increase NOI during the loan term. Initial floating-rate period funds the capital improvements; the loan converts to permanent agency execution once the business plan is complete.

• For light to moderate value-add business plans
• Funding for capital improvements during the initial term
• Initial floating-rate period, with conversion to permanent at stabilization
• Non-recourse with standard carve-outs

Freddie Mac Conventional Manufactured Housing Community Loan

Freddie Mac’s equivalent of the Fannie Mae MHC program, specialized agency financing for manufactured housing community properties, with underwriting tailored to the operating characteristics of site-rent communities.

• Long-term fixed-rate or floating-rate options
• LTV up to 75% typically
• For site-rent communities (residents own the homes)
• Non-recourse with standard carve-outs

Freddie Mac Targeted Affordable Housing (TAH) Preservation Loan

Financing for properties subject to affordable housing restrictions through LIHTC, project-based Section 8, or other affordability covenants. The TAH program offers pricing improvements and structural flexibility to support preservation of long-term affordability.

• For LIHTC, project-based Section 8, and other affordable properties
• Pricing improvements vs. conventional agency execution
• Structural flexibility for properties with subordinate debt or restrictions
• Longer terms and amortization periods available

Freddie Mac Conventional Supplemental Loan

A second loan added to an existing Freddie Mac first mortgage. The Freddie equivalent of Fannie’s Supplemental Financing, lets borrowers access additional equity without refinancing the first loan when prepayment costs would make a refinance uneconomic.

• Available 12+ months after the initial Freddie Mac loan close
• Combined LTV cannot exceed original program limits
• Coterminous with the first loan
• Non-recourse with standard carve-outs