How Borrowers Can Get Freddie Mac Multifamily Funding
Are you a new or emerging borrower interested in working with Freddie Mac? Learn more about Freddie Mac Multifamily, the products we offer and how to connect with our Optigo® lenders.
Working with Freddie Mac Multifamily
Your financing needs and preferences drive the search for funding and ultimately determine the nature of the loan transaction. At Freddie Mac Multifamily, we finance loans for properties that have five or more dwelling units. Here’s what you need to know:
- Reach out to an approved Optigo lender to learn more about the financing they provide, their baseline requirements and how they can meet your needs.
- Most of our Optigo lenders work with various investors, including a secondary market institution such as Freddie Mac.
- If an Optigo lender determines that your loan meets Freddie Mac’s requirements and reaches out to us, we work directly with the lender to structure a loan transaction to fit your needs.
- If a loan moves forward, Freddie Mac issues a letter of commitment to the lender, who in turn provides an application or commitment to you on the terms of the financing. The Optigo lender originates and closes the loan and then sells the loan to Freddie Mac.
- When Freddie Mac purchases a loan, the Optigo lender typically serves as the servicer of the loan on behalf of Freddie Mac while Freddie Mac owns the loan.
- Freddie Mac may retain the purchased loan(s) on our balance sheet for a period of time or for the life of the loan, but most loans are pooled into commercial mortgage-backed securities (CMBS) and sold to CMBS investors. Freddie Mac may also securitize loans in participation certificates (PC), which Freddie Mac guarantees.
Freddie Mac Multifamily 101
This course provides an overview on how Freddie Mac Multifamily makes rental housing more accessible and affordable.
Product Overview
Freddie Mac Multifamily offers three primary loan types. Learn more about our financing products.
Conventional financing facilitates the acquisition, refinance, or rehabilitation of multifamily properties. This category also includes student housing, seniors housing and manufactured housing communities.
Small Balance Loan financing is designed for the purchase of loans between $1 million and $7.5 million, specializing in properties with 5 to 50 rental units.
Targeted Affordable Housing financing is designed for the purchase of properties with public or mission-driven financial investment — and rents affordable to families with low- and very low-incomes.
Ready to Get Started? Find One of Our Approved Optigo Lenders.
Our Diverse & Emerging Sponsor Cohort
To expand access to financing, we bring together an annual cohort of diverse and emerging sponsors looking to grow and scale their business.
Find out who’s participating this year and how to get involved.