Agency multifamily debt comes from Fannie DUS , Freddie Optigo , and HUD MAP , together financing roughly half of all US multifamily debt. Best for stabilized 5+ unit properties at 65% to 80% LTV with 5/7/10/15-year fixed-rate non-recourse perm. HUD for very long-term, very high-leverage with 6 to 9 month tolerance.
Three programs: three roles
Fannie DUS (Delegated Underwriting and Servicing): roughly 25 approved DUS lenders originate to Fannie's standards and share loss risk. Standard conventional execution, deep market, broadest prepayment menu of the three.
Freddie Optigo: similar lender-network model. Optigo Conventional Small, generally $2 million to $10 million, is the current small-loan execution. The prior SBL program stopped taking applications on April 30, 2026. Conventional Optigo competes head-to-head with Fannie DUS on larger deals.
HUD 223(f) and 221(d)(4): FHA-insured, 35 to 40 year fully-amortizing fixed-rate, highest leverage available on 223(f) and 221(d)(4). Slow process (6 to 12 months); best long-term economics for sponsors who can absorb the timeline.
Sizing math
Debt yield floor (8.0% to 9.0% depending on tier and asset profile). DSCR floor (1.25x at proposed rate / 30-year amortization for conventional Fannie/Freddie; 1.15x for market-rate HUD 223(f) and 221(d)(4); 1.11x for qualifying affordable with a rent advantage or rental assistance on at least 90% of units). LTV ceiling (75% conventional, up to 80% with mission-driven adjustments, 87% market-rate HUD). LIHTC without a rent advantage stays in the market-rate box. Cash-out is 80% of value.
Prepayment menus
Yield maintenance: standard on most fixed-rate Fannie/Freddie. Present-value gap calculation; typically expensive when current rates are below the loan rate.
Declining penalty: 5-4-3-2-1 or similar scheduled prepayment penalty in lieu of yield maintenance. Cheaper than YM when current rates are well below the loan rate; pricier on the headline.
Par open window: typically the last 90 days of term. Free prepayment.
HUD 223(f) and 221(d)(4) prepayment is typically a declining premium, often 10% in year 1 stepping down 1% a year, then open at par. It is not yield maintenance.
Process and timeline
Conventional Fannie/Freddie: 60 to 90 days from term sheet to closing on a clean stabilized refi. Add 15 to 30 days for new acquisitions or properties with significant operating updates.
HUD 223(f): 6 to 9 months from MAP lender engagement to closing. The MAP review is non-negotiable.
HUD 221(d)(4) construction-perm: 9 to 12 months from engagement to closing.
When to use which program
Conventional refi $5M+: quote both Fannie DUS and Freddie Optigo. Pricing varies week-to-week; pick the better quote.
Small multifamily loans: Freddie Mac Conventional Small, generally $2 million to $10 million, is the current Freddie execution. The prior SBL program stopped taking applications on April 30, 2026.
Need maximum leverage and long-term debt service certainty: HUD 223(f) at 87% LTV on market-rate / 35-year fully-amortizing. Trade-off is the 6 to 9 month timeline.
Construction-to-perm: HUD 221(d)(4) is the rate-locked construction-perm structure. Trade-off is the 9 to 12 month timeline and HUD construction administration.
Frequently asked questions
What is the agency multifamily cap for 2026?
Each Enterprise has a 2026 multifamily loan-purchase cap of $88 billion, announced November 24, 2025, up from $73 billion in 2025. 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.
Can I get IO on agency multifamily debt?
Yes, partial IO (e.g., 1 to 5 years of IO followed by amortization) is widely available; full-term IO is available at lower leverage and stronger debt yield. Sizing tightens with IO; the sizing test is run at the IO debt service.
Can I refinance an agency loan early?
Yes, subject to the prepayment menu (typically yield maintenance or declining penalty). Open at par in the last 90 days. Plan refis to land in the open window when possible.
Sources
- Delegated Underwriting and Servicing (DUS) program disclosures · Fannie Mae · current
- Optigo lending program disclosures · Freddie Mac Multifamily · current
- Multifamily Accelerated Processing (MAP) Guide · U.S. Department of Housing and Urban Development · current
- Multifamily Market Commentary · Fannie Mae Economic & Strategic Research · 2026-Q1
- Multifamily Research and Outlook · Freddie Mac Multifamily · 2026-Q1