Freddie Mac Multifamily Fixed and Floating Rate Loan Options

Highlights of the Standard Freddie Mac Multifamily Loan options

Freddie Mac provides a diverse portfolio of multifamily loan products for both the acquisitions and recapitalizations of apartment communities. 

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, Freddie Mac released a small balance program in September 2014 to compete with Fannie Mae. Since then, it would be hard to deny that Freddie Mac has been pricing its loans better than Fannie Mae (the traditionally more popular platform) in many cases. 

Still, similar to Fannie Mae, Freddie Mac has strict underwriting guidelines for principals and properties. Once approved, however, there are very few multifamily lenders outside of life companies on larger balance deals that can compete.

Sample Freddie Mac Terms For Apartment Loans:

  • Size: From $1,000,000 and up

  • Terms: Floating and fixed-rate options with 3, 5, 7, 10 + year terms 

  • Amortization: Up to 30 years

  • Maximum LTV: 80% (subject to sub-market and debt service constraints)

  • Minimum DSCR: From 1.25 for market-rate properties 

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

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

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


  • Highly competitive pricing.

  • Early rate lock.

  • Up to 80% LTV.

  • Partial-term and full-term interest-only available.

  • Supplemental loans are available.

  • Non-recourse.


  • Selective of the properties they will finance.

  • Require financially strong borrowers.