Top Multifamily Mortgage Programs

Multifamily Loan Programs - Commercial Real Estate Financing

Fannie Mae Financing

Fannie Mae financing is available nationwide in primary and secondary markets and is funded under the Fannie Mae Delegated Underwriting Services (DUS) Program. These loans are for stabilized properties only with a minimum $750,000 loan amount with rates that can be fixed or floating. FNMA financing can be used for traditional multifamily properties, student housing, affordable housing, or independent senior living. Maximum leverage is 80% on purchases and 75% on refinances within designated areas. Loans may be recourse or non-recourse.

Loan Type Min Loan Amount Max LTV Term Length Amortization
Fannie Mae (FNMA) $750,000 80% 3-30 Years 15-30 Years
Fannie Mae Info Fannie Mae Rates

Freddie Mac Financing

A Freddie Mac Loan is a type of multifamily loan that is secured by a first-position mortgage on a traditional, student housing, senior housing, or affordable housing property. These mortgages may be held in the FHLMC portfolio (10% of mortgages) or sold to bond investors (90% of mortgages).

Loan Type Min Loan Amount Max LTV Term Length Amortization
FHLMC $1,000,000 80% 5-30 Years 30 Years
Freddie Mac Info Freddie Mac Rates

FHA Financing - HUD Multifamily Financing

The Federal Housing Authority (FHA) guarantees these mortgages under the authority of the Department of Housing and Urban Development (HUD), making them available nationwide. FHA loans are for stabilized properties that have been in operating for at least 3 years (under the 223(f) program) or for the construction of large projects (under the 221(d)(4) program) and are underwritten for 35-40 year self-amortizing loans with attractive rates. FHA multifamily mortgages can be used for traditional multifamily properties, affordable housing, or senior living. Maximum leverage is currently 83.3% on purchases and 80% on refinances with a minimum loan amount of $5 million for purchase or refinance or $25 million for construction. Because the government guarantees these loans, they are always non-recourse, except standard carve-outs.

Loan Type Min Loan Amount Max LTV Term Length Amortization
FHA / HUD $3,000,000 83.3% 30-40 Years 30-40 Years
FHA Info FHA Rates

Conventional Multifamily Financing

Called portfolio, wholesale or conventional multifamily mortgages, these loans are funded by a bank or other institutionalized lender which does not securitize or sell their loans into capital markets. Because loans are not sold into the secondary market, terms may be more flexible than a securitized loan and it is typically serviced by the lender. Maximum leverage can range from 75-85% (in limited circumstances and areas). Personal guarantees are typically required, may be waived or limited on occasion, depending on the leverage and program.

Loan Type Min Loan Amount Max LTV Term Length Amortization
Conventional $1,000,000 80% 3-15 Years 15-30 Years
Conventional Info Conventional Rates

Conduit / CMBS Multifamily Loans

Conduit / CMBS loans are securitized loans that are pooled and sold on the secondary market. They are available nationwide in all markets and are available for stabilized properties with a minimum $2 million loan amount. CMBS multifamily loans are typically only for traditional multifamily complexes or independent senior living communities. Maximum leverage is 75% on both purchases and refinances and loans are always non-recourse.

Loan Type Min Loan Amount Max LTV Term Length Amortization
Conduit / CMBS $2,000,000 75% 5-10 Years 20-30 Years
Conduit Info Conduit Rates

Commercial Real Estate Insurance Mortgages

Insurance mortgages are a type of portfolio loan that is typically funded by a life insurance company and offer the best rates and longest terms in the industry. Although there may be some availability for secondary markets, strong primary markets are highly preferred. Minimum loan amounts may vary based on the programs, but most products have a $5-10 million loan minimum. Insurance loans are typically the best fit for low leverage, high-performing buildings that are B class or greater and no more than 15 years old.

Loan Type Min Loan Amount Max LTV Term Length Amortization
Insurance $1,000,000 75% 5-30 Years 15-30 Years
Insurance Info Insurance Rates

Construction Mortgages

CLD provides two types commercial loans for multifamily properties. These include FHA and conventional financing.

Loan Type Min Loan Amount Max LTV Term Length Amortization
FHA Apartment Construction Loans $3,000,000 83.3% 35-40 Years 35-40 Years
Conventional Construction Loans $1,000,000 80% 3-15 Years 15-30 Years
Conventional Info Conventional Rates

USDA Mortgages

USDA guaranteed mortgages can be used for any commercial real estate collateral that is located in a designated rural area (with a population of less than 50,000 people). Maximum LTV is 90% under some programs, but most have a maximum of 80-85%. USDA mortgages are almost always full recourse.

Loan Type Min Loan Amount Max LTV Term Length Amortization
USDA $1,000,000 90% 5-15 Years 15-30 Years
USDA Info USDA Rates

In addition to traditional multifamily financing, CLD provides:

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