In the past, Freddie Mac was the government sponsored agency of choice for higher balance multifamily lending (including mobile home parks, health properties, affordable housing, student housing, and so-on). However, in a bid to become more aggressive in the lending market due to increased competition, early this year Freddie Mac released a small balance program to compete with Fannie Mae in which it has been pricing its loans better than Fannie (the traditionally more popular platform). Similar to Fannie Mae, it has strict underwriting guidelines for principals and properties, but once approved, there are very few multifamily lenders, outside of life companies on larger balances deals, that can compete.

You can also click here for Freddie Mac Small Balance Loans for multifamily financing between $750k and $7MM.

Sample Freddie Mac Terms For Apartment Loans
Terms as of April, 2017

Size:                    $1 to $100 million

Terms:                  5 to 10-year terms

Interest Rates:     Fixed Rates from 4.20% & Floating Rates from 2.20%

Amortization:       Up to 30 years

Maximum LTV:     75% - 80%

Minimum DSCR:  1.25 x’s

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

Early rate-lock option available for varying durations, typically ranging from 60 to 120 days until Freddie Mac purchase; Index Lock and Fast Track Early Rate-Lock options also available.

Prepayment Options: Yield maintenance until securitized followed by 2-year lockout; defeasance thereafter. No prepayment premium for final 90 days.         


  • Highly competitive pricing.
  • Early rate lock.
  • Up to 80% LTV.
  • Partial-term and full-term interest-only available.
  • Supplemental loans available.
  • Non-recourse.


  • Selective of the properties they will finance.
  • Require financially strong borrowers.