Freddie Mac Financing for Conventional Multifamily Properties

Freddie Mac Insured Fixed-Rate Multifamily Loans for Conventional Apartment Buildings and Multifamily Developments

If you're an investor or developer looking to finance a multifamily property with a Freddie Mac loan, the Freddie Mac Fixed-Rate Conventional Loan could be a great solution for your financing needs. Freddie Mac Fixed-Rate Conventional Loans have a wide variety of potential uses, as they allow for the acquisition or refinancing of conventional properties, student housing developments, seniors housing projects, cooperative apartments, and targeted affordable housing developments.

Plus, these loans offer LTV allowances of up to 80%, are non-recourse, assumable (with approval and fees) and offer flexible terms and amortizations of up to 30 years, making them suitable for a variety of different multifamily financing situations. Freddie Mac Fixed-Rate Conventional Loan borrowers will usually receive a commitment within 45 to 60 days after initial application, which also makes them quite a bit speedier than alternatives like HUD multifamily loans

Keep reading below to learn more, or click here to download our easy-to-understand Freddie Mac Fixed-Rate Loan term sheet.

Sample Freddie Mac Terms For Fixed-Rate Conventional Loans

Size:  $5 million - $100 million (though smaller and larger loan amounts will be considered)

Use:  Acquisition or refinance 

Terms:  5-10 years (Up to 30 years if loan not purchased for securitization) 

Amortization:  Up to 30 years, with interest-only payment options 

Maximum LTV/Minimum DSCR:  

  • 5-7 Year Loans:

    • Amortizing: 75%/1.30x

    • Partial Term Interest-Only: 75%/1.30x

    • Full Term Interest-Only: 65%/1.40x

  • 7 Year Loans:

    • Amortizing: 80%/1.25x

    • Partial Term Interest-Only: 80%/1.25x

    • Full Term Interest-Only: 70%/1.30x

  • 7+ Year Loans:

    • Amortizing: 80%/1.25x

    • Partial Term Interest-Only: 80%/1.25x

    • Full Term Interest-Only: 70%1.35x

Recourse:  Non-recourse with standard “bad boy” carve-outs

Prepayment Options: Yield maintenance until securitization, 2-year lock-out period following securitization, defeasance allowed after securitization. Yield maintenance for securitized loans is permitted for an additional fee. No pre-payment premiums required in the last 90 days of the loan. 

Eligible Borrowers: 

  • Eligible borrowers include limited partnerships, limited liability companies, corporations, or tenancies in common (TICs) with 10 or fewer members

  • In some circumstances (and with specific requirements), general partnerships, REITs, limited liability partnerships, and some trusts may also be eligible

  • Typically, borrowers must be single purpose entities (SPEs), however, on loans less than $5 million, borrowers may be able to be Single Asset Entities instead

  • For tenancies in common (TICs), each member needs to be a SPE

Eligible Properties: 

  • Conventional multifamily properties, manufactured housing communities, seniors housing developments, cooperative housing, student housing developments, and targeted affordable housing, including LIHTC Year 4-10 and 11-15 and Section 8 properties

Refinancing Test: No test needed for amortizing loans with a DSCR of at least 1.40x and an LTV of less than or equal to 65%. Interest-only loans must pass a refinancing test before they are approved. 

Assumability:  Loans are assumable with lender approval, but require a 1% assumption fee paid to Freddie Mac. May also require an underwriting fee paid to the lender (typically $5,000.)

Timing:  Borrower will typically receive a commitment 45 to 60 days after initial application; third-party report timing and borrower due diligence submission may speed up or slow down the process 


  • Very competitive interest rates

  • Up to 80% LTV for some properties

  • Loans are non-recourse

  • Supplemental loans allowed

  • Mezzanine financing available

  • Early rate-lock options allowed, between 60-120 days before purchase, index locks are also available to eligible borrowers

  • Eligible mixed-use properties permitted


  • Requires replacement reserves

  • Requires third-party reports including Phase I Environmental Assessment, Appraisal, Physical Needs Assessment, Seismic Report may be required for properties in Seismic Zones 3 and 4

  • Application fees required: $2,000 or 0.1% of loan amount (whichever is larger) for conventional first mortgages, $5,000 or 0.15% of loan amount (whichever is larger) for seniors housing, $3,000 or 0.1% of loan amount (whichever is larger) for targeted affordable housing loans

  • Typically requires a loan origination fee

  • Typically requires between $8,000 and $12,000 in legal fees

  • Lender application fees also required (avg. of $15,000, including third-party reports, but may vary based on specific lender)

  • 2% rate lock fee usually required (refunded after Freddie Mac purchases loan, usually around 30 days post-closing)