The Federal Housing Finance Agency (FHFA) has raised the multifamily loan purchase caps for Fannie Mae and Freddie Mac to $146 billion in 2025, up from $142 billion in 2024. Workforce housing loans will continue to be exempt from the caps. This increase benefits affordable housing developers by providing greater access to financing for new construction and preservation projects, especially as housing demand surges. The policy also bolsters support for middle-income rental units, ensuring developers can target essential workforce housing needs while enjoying reasonable financing terms. This move signals a continued federal commitment to addressing the nation’s housing demand.
Developers of affordable multifamily rental housing can capitalize on the increased multifamily loan purchase caps in several ways:
1. Leverage Increased Access to Capital: With $146 billion in available loan capacity, developers can secure financing for larger-scale projects or expand their portfolios in high-demand areas.
2. Focus on Workforce Housing: Workforce housing loans remain exempt from the caps, offering developers more flexibility to target middle-income renters, such as essential workers.
3. Preservation Opportunities: Developers specializing in preserving affordable units can benefit from reasonable terms to refinance or rehabilitate aging properties, extending their affordability.
4. Partner with Lenders: Engaging with lenders connected to Fannie Mae and Freddie Mac ensures access to tailored financing programs, such as forward commitments or long-term fixed rates.
5. Explore Green and Affordable Incentives: Both Fannie Mae and Freddie Mac offer enhanced terms for developments meeting sustainability or affordability criteria, further reducing financing costs.
Early planning and proactive engagement with lenders and housing agencies can help developers maximize these opportunities.
