For most stabilized multifamily, Fannie and Freddie quote head-to-head with very similar credit boxes. Differences are at the margin: pricing varies week-to-week, IO availability and prepayment menus differ, Freddie’s Conventional Small program is the current small-loan execution. Prior SBL applications ended April 30, 2026. Fannie's prepay flexibility is broader on larger deals.
What is different at the deal level?
Pricing. Both agencies set spreads based on internal cost-of-capital models that move slightly differently week-to-week. Most deals see a 5 to 25 bps spread difference between the two on any given quote, sometimes Fannie cheaper, sometimes Freddie. The right answer is to quote both.
Sizing. Both use debt-yield, DSCR, and LTV constraints. Treatment of expenses (e.g., reserves, management fee floors), trailing vs. forward NOI, and concession adjustments can produce material differences in maximum loan size on the same property.
Prepayment. Fannie's standard prepayment menu (yield maintenance, declining penalty, par-only) is broader than Freddie's. Borrowers focused on sale-flexibility often prefer Fannie's options.
Small loans. Freddie's SBL program was the prior small-loan program. New applications ended April 30, 2026. Conventional Small, generally $2 million to $10 million, is the current Freddie execution.
How should I decide?
Quote both. Pick the better pricing, the better sizing, or the better prepayment menu depending on what matters most for the deal. Many advisors keep the comparison sheet on every multifamily refi.
Sources
- Delegated Underwriting and Servicing (DUS) program disclosures · Fannie Mae · current
- Optigo lending program disclosures · Freddie Mac Multifamily · current
- Multifamily Market Commentary · Fannie Mae Economic & Strategic Research · 2026-Q1