What Are Agency Multifamily Loans?
Agency multifamily loans are apartment building mortgages originated by approved lenders and purchased or securitized by Fannie Mae (DUS program) or Freddie Mac (Optigo program). These are the gold standard of multifamily financing — the lowest rates, longest terms, and most favorable structures for stabilized apartment buildings with 5+ units.
Agency loans are non-recourse (borrower not personally liable beyond the collateral), offer terms from 5-30 years, and provide interest-only options. They require stabilized properties (typically 90%+ occupancy for 90+ days) and experienced borrowers.
Agency vs. bank: Agency multifamily rates typically run 0.5-1.5% below bank portfolio rates and offer non-recourse (banks are almost always recourse). The trade-off is stricter property requirements, longer closings, and minimum loan amounts ($1M+).
Who Agency Multifamily Loans Are For
- Owners of stabilized apartment buildings with 5+ units
- Investors refinancing existing multifamily debt to better terms
- Portfolio holders seeking non-recourse, long-term fixed-rate financing
- Experienced multifamily investors with strong track records
Key Features
Loan amounts from $1M to $100M+. Rates among the lowest in commercial lending. Terms from 5-30 years. Non-recourse with standard carve-outs. LTV up to 75-80%. DSCR minimum 1.20-1.25. Interest-only options available. Supplemental loans for additional leverage. Assumable with lender approval.