On stabilized multifamily over $5M, agency (Fannie DUS / Freddie Optigo ) typically wins on proceeds, IO term, and rate. CMBS competes on $10 million to $50 million-plus stabilized deals where the borrower wants a 10-year fixed conduit loan without agency reporting or affordability covenants. Life co wins on lower-leverage prime assets where the borrower values execution certainty and longer terms.
When to consider each lender type
Agency multifamily: typically the proceeds and rate winner on stabilized assets above $5M. Sponsor benefits include up to 75% to 80% LTV, full-term IO available on lower-leverage deals, 5/7/10/12/15-year terms, non-recourse with standard carve-outs, and assumability with consent. Constraints: income or rent restrictions on affordable executions (Green Rewards and Green Up do not impose income restrictions), pricing-based DSCR floors that may cap proceeds, and standard reserves.
CMBS competes on $10 million to $50 million-plus stabilized deals where the borrower wants a 10-year fixed conduit loan without agency reporting or affordability covenants. Sponsor benefits: certainty of structure, predictable execution. Constraints: defeasance prepayment after lockout, lender of last resort during conduit volatility, special-servicer dynamics on a workout.
Life co: wins on $5M to $50M+ deals at 60% to 70% leverage where the borrower values longer terms (15 to 25 years), no defeasance (yield-maintenance prepayment), and strong execution certainty. Sponsor benefits: relationship-driven, predictable balance-sheet lender, often the cleanest closing. Constraints: tighter leverage, more conservative on pro-forma value, pricing not always best on shorter-term debt.
Sources
- Multifamily Market Commentary · Fannie Mae Economic & Strategic Research · 2026-Q1
- Multifamily Research and Outlook · Freddie Mac Multifamily · 2026-Q1
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1