Agency Multifamily Loans Explained: Fannie, Freddie, and HUD in 2026

For stabilized apartment communities and affordable housing, agency multifamily loans — issued through Fannie Mae's DUS program, Freddie Mac's Optigo program, and HUD's FHA multifamily programs — offer terms that the private market simply cannot match: non-recourse debt, fixed rates locked for up to 10–35 years, and leverage up to 80–85% of value. The tradeoff is process — agency loans involve more documentation, longer timelines, and more rigid underwriting than conventional or CMBS alternatives.

Fannie Mae DUS Multifamily Loans

Fannie Mae's Delegated Underwriting and Servicing (DUS) program is the most widely used agency multifamily product. DUS lenders (approved by Fannie) underwrite and close loans in their own name, sharing risk with Fannie Mae. This risk-sharing structure gives DUS lenders real underwriting authority — closings typically occur in 45–60 days for stabilized properties.

Key DUS parameters: LTV up to 80% (market rate) or 85% (affordable), DSCR minimum 1.25x, fixed terms of 5, 7, 10, 12, or 15 years with 30-year amortization, non-recourse with standard carve-outs. Rates are typically 10-year Treasury + 140–190 bps for market-rate properties. The Fannie Small Loan program serves properties with loan amounts of $1M–$9M and is particularly active in secondary markets across the Southeast.

Freddie Mac Optigo Multifamily Loans

Freddie's Optigo program mirrors Fannie DUS in most respects, but Freddie has historically been more aggressive in certain segments: manufactured housing communities, workforce housing, and smaller markets. Freddie SBL (Small Balance Loan) program serves loans of $1M–$7.5M with streamlined underwriting and 45-day closings. Freddie Targeted Affordable Housing (TAH) financing is among the deepest subsidy-compatible agency financing available.

HUD FHA Multifamily Programs

HUD's multifamily programs are the most powerful — and most complex — in the agency universe. The key programs are 223(f) for acquisition/refinance of existing properties (up to 80% LTV, 35-year term, fixed rate) and 221(d)(4) for new construction (up to 85% LTC, 40-year term, fixed rate). HUD loans are fully non-recourse, have no balloon payment risk, and are assumable — attributes that make them the preferred permanent capital for long-term hold apartment operators.

The catch: HUD closings take 8–14 months. For borrowers unwilling to wait, a bridge-to-HUD structure (short-term floating bridge, then HUD refinance at stabilization) is the standard solution.

Which Program Fits Your Deal?

Scenario	Best Program
Stabilized market-rate apartments, need 60-day close	Fannie DUS or Freddie Optigo
Ground-up development, want 40-year fixed at stabilization	HUD 221(d)(4)
Acquisition/refi of existing property, long-term hold	HUD 223(f)
Small loan ($1M–$7.5M), secondary market	Fannie SBL or Freddie SBL
Affordable/workforce housing with income restrictions	Fannie/Freddie affordable or HUD 221(d)(4)

First Realty Capital arranges agency multifamily financing through Fannie Mae DUS, Freddie Optigo, and HUD FHA programs. Request a multifamily financing term sheet.