We provide mortgage funding for apartment loans throughout the nation, purchasing loans from a network of lenders and then securitizing these loans. Our funding spans the nation, including large metropolitan areas, mid-market cities and smaller communities. And the properties we finance house a wide array of renters, including students, single professionals, working families and senior citizens.
Read about the differences between Freddie Mac’s Multifamily and Single Family businesses.
Most of the loans we finance support affordable rental housing for low- and moderate-income households who earn no more than area median income. Because we tend to have lower borrowing costs than certain other funding sources, we help keep financing affordable for many properties that otherwise would have difficulty securing funding, including aging properties, those in need of capital improvements and apartments in smaller communities.
Our strategy of transferring the vast majority of risk to private investors enables us to fulfill our mission while minimizing U.S. taxpayers’ exposure to potential losses. Our K- and SB-Deals, as well as many of our other securities, include senior bonds, which we guarantee, and subordinate bonds, which we don’t guarantee, all backed by the same loans. Subordinate bonds are held by private investors and bear the risk of initial losses, creating a shock absorber for senior bonds. That’s a business model policymakers view as the future of housing finance.
Read more about our impeccable credit quality.
5 Facts to Know About Multifamily
Here's a quick summary about us.
Risk Transfer Program
Learn how our model of transferring risk and attracting private capital reflects the future of housing finance – today.
Rental Affordability and Targeted Affordable Housing
Finding an affordable apartment is a challenge for a growing number of renters. Our Targeted Affordable Housing business delivers mission-critical support for subsidized lower-income housing.
Multifamily Business Primer
Want to know more about our Multifamily business and contributions to U.S. rental housing? Here's a closer look.