Fannie DUS and Freddie Optigo execute the same conventional multifamily perm market with similar credit boxes. Fannie has the broader prepayment menu; Freddie’s current small-loan execution is Conventional Small. New SBL applications ended April 30, 2026. Always quote both.
Side-by-side at a glance
| Dimension | Fannie DUS | Freddie Optigo |
|---|---|---|
| Lender network | ~25 approved DUS lenders | Approved Optigo lender network |
| Typical loan size | $1M to $200M+ | $1M to $200M+ (Conventional Small, generally $2 million to $10 million) |
| LTV ceiling | Up to 80% (Tier 2) | Up to 80% (Tier 2) |
| Debt-yield floor | 8.0% to 9.0% by tier | 8.0% to 9.0% by tier |
| DSCR floor | 1.25x at proposed rate / 30yr | 1.25x at proposed rate / 30yr |
| IO availability | Partial IO standard; full-term selectively | Partial IO standard; full-term selectively |
| Prepayment menu | YM, declining penalty, par open window | YM, par open window (declining penalty selectively) |
| Small-loan program | Fannie small-loan program | Conventional Small, generally $2 million to $10 million. Prior SBL applications ended April 30, 2026 |
| Forward commitment | Available | Available |
| Typical timeline | 60 to 120 days term sheet → close | 60 to 120 days |
When to consider Fannie DUS
Prepayment flexibility. 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.
Larger-balance ($25M+) deals where the DUS lender's relationship and execution depth matters. Fannie's larger-balance bench is generally considered slightly deeper than Freddie's at scale, though the gap is small.
Specific weeks when Fannie's pricing is sharper than Freddie's, the spread between the two moves week-to-week.
When to consider Freddie Optigo
Smaller multifamily loans, now Conventional Small rather than SBL. Quote Freddie Mac Conventional Small and Fannie Mae's small-loan program.
Specific weeks when Freddie's pricing is sharper than Fannie's. Variance week-to-week is real.
Some property types where Freddie's allocation favors the deal (mission-driven affordable, certain submarket characteristics).
What you should do
Quote both on every deal of $5M+. Pricing variance between them is large enough relative to advisor fees that the parallel quote is essentially free.
On smaller multifamily loans, quote Freddie Mac Conventional Small and Fannie’s small-loan program. New SBL applications ended April 30, 2026.
On $50M+ deals, both quote competitively. Selection often comes down to specific lender execution (which DUS lender or Optigo lender is on the deal), not which agency is fundamentally better.
Common decision misconceptions
'Fannie is for institutional sponsors; Freddie is for smaller sponsors.' Not true. Both serve the same sponsor profiles at the same size points. Conventional Small is the current small-loan execution; conventional Optigo competes head-to-head with DUS.
'Fannie is always cheaper.' Not true. Pricing varies week-to-week. Both quote off internal cost-of-capital models that move slightly differently.
'Freddie is faster.' That was true of the former SBL program. New SBL applications ended April 30, 2026. Conventional Small and conventional DUS/Optigo loans often run similar 60 to 120 day timelines.
Frequently asked questions
Will the same DUS lender also do Optigo deals?
Most national multifamily lenders are approved on both Fannie DUS and Freddie Optigo. The same lender will quote both agencies on the same deal and let the borrower select.
Can I refinance from Fannie to Freddie at maturity?
Yes, at the maturity of the existing loan, the property can refinance to whichever agency program (or non-agency execution) wins on that day's pricing. Existing-loan agency choice doesn't constrain future agency choice.
Do both Fannie and Freddie do mission-driven (affordable) lending?
Yes. Both have mission-driven (LIHTC-eligible, workforce housing, manufactured housing, etc.) programs. At least 50 percent of purchases must be mission-driven. Qualifying workforce housing is excluded from the cap. Other mission-driven loans, including targeted affordable, still count against the cap. There is no separate mission cap, and workforce is not a sub-target inside the cap.
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
- Multifamily Research and Outlook · Freddie Mac Multifamily · 2026-Q1