Freddie Mac vs. Fannie Mae Multifamily Loans: Which Agency Program Is Right for Your Deal?
Freddie Mac and Fannie Mae are the two GSEs that provide the majority of permanent financing for stabilized multifamily properties. Compare loan sizes, rate structures, DSCR requirements, and prepayment flexibility to determine which agency program fits your deal.
Krish
Real Estate Investor & Founder of UWmatic
Freddie Mac vs. Fannie Mae for Multifamily: What's the Difference?
Freddie Mac (through its Optigo program) and Fannie Mae (through its Delegated Underwriting and Servicing or DUS program) are the two government-sponsored enterprises (GSEs) that provide the majority of permanent financing for stabilized multifamily properties in the United States. Both offer non-recourse, long-term fixed-rate loans with 30-year amortization, but they differ in loan size targets, rate structures, prepayment flexibility, and supplemental loan policies. Together, they finance approximately 60% of all multifamily lending in the U.S.
Side-by-Side Comparison
| Feature | Freddie Mac Optigo | Fannie Mae DUS |
|---|---|---|
| Typical Loan Size | $1M -- $100M+ | $3M -- $100M+ |
| Small Loan Program | $1M -- $7.5M (SBL) | $750K -- $6M (SMAL) |
| Fixed Rate Terms | 5, 7, 10, 15, 20, 30 year | 5, 7, 10, 12, 15, 18, 20, 25, 30 year |
| Max LTV | 80% (75% cash-out refi) | 80% (75% cash-out refi) |
| Min DSCR | 1.20x -- 1.25x | 1.25x |
| Amortization | 30 years | 30 years |
| Recourse | Non-recourse with carveouts | Non-recourse with carveouts |
| Interest Only | Available (typically 1-3 years) | Available (typically 1-5 years) |
| Prepayment | Yield maintenance or defeasance | Yield maintenance or defeasance |
| Supplemental Loans | Available after 12 months | Available after 12 months |
| Minimum Units | 5 units | 5 units |
When to Choose Freddie Mac
Freddie Mac tends to be more competitive for smaller deals through its Small Balance Loan (SBL) program, which streamlines the process for loans from $1 million to $7.5 million. Freddie Mac also tends to offer slightly more flexible DSCR requirements (1.20x vs. Fannie's standard 1.25x) and may be more accommodating for properties with lower occupancy or properties in secondary markets.
When to Choose Fannie Mae
Fannie Mae's DUS program often provides more competitive rates on larger deals (above $10 million) and offers more term length options including 12, 18, and 25-year terms that Freddie Mac doesn't offer. Fannie Mae also has more established programs for affordable housing, student housing, and manufactured housing communities.
Current GSE Rate Environment
Agency multifamily rates change daily based on Treasury yields and credit spreads. As of early 2026, 10-year fixed agency rates for stabilized multifamily properties generally range from 5.5% to 6.5%, though rates vary by deal size, leverage, and property quality.
UWmatic integrates live rate data from both Freddie Mac Optigo and Fannie Mae DUS, automatically screening your deal's eligibility and comparing financing scenarios side-by-side. This eliminates hours of broker calls and manual rate shopping, showing you instantly which program maximizes your returns.
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Frequently Asked Questions
Can I get both Freddie Mac and Fannie Mae quotes?
What properties qualify for agency financing?
Do GSE loans require a personal guarantee?
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