Three agency programs, three real use cases. The right answer depends on the deal, not on which lender called you first.
For stabilized multifamily, the agencies. Fannie Mae, Freddie Mac, and HUD, are usually the most competitive option in the market on rate, LTV, and term. All three are non-recourse with standard carve-outs. Fannie Mae and Freddie Mac conventional loans generally max out at 80% LTV, and cash-out is often lower. HUD 223(f) can go higher for a qualifying loan. The maximum is the program guide’s limit for that loan, not a proceeds quote. None of them are interchangeable.
Fannie Mae DUS
Fannie's Delegated Underwriting and Servicing program is the workhorse for institutional stabilized multifamily. Fast, predictable, and deep. Fannie has been the largest single source of multifamily debt in the country for over two decades.
- LTV: Up to 80%, with most deals landing 65 to 75%.
- Term: 5, 7, 10, 12, 15, or 30 years. Amortization up to 30 years.
- Recourse: Non-recourse with standard carve-outs.
- Closing: 45 to 60 days when the package is clean.
- Best for: Stabilized assets needing speed and execution certainty.
Freddie Mac Optigo
Freddie competes hard with Fannie on most institutional deals and frequently wins on pricing, particularly when LTV is mid-range. Freddie Mac stopped taking new Small Balance Loan applications on April 30, 2026. New small multifamily loans are Conventional Small, generally $2 million to $10 million.
- Conventional Small: generally $2 million to $10 million. The prior SBL program stopped taking applications on April 30, 2026.
- Conventional: $5M and up, comparable to Fannie DUS on most institutional product.
- Term: 5, 7, 10 years standard; 15 years available.
- Closing: 60 to 120 days.
- Best for: Small balance multifamily, or institutional deals where Freddie's pricing wins the bid.
HUD / FHA 223(f)
HUD is the long-duration play. The 223(f) program offers one of the longest fully amortizing terms and among the highest LTV ceilings of any agency program, but on a six- to nine-month closing timeline that disqualifies it for most acquisitions.
- LTV: 87% LTV and 1.15x DSCR on market-rate. Qualifying affordable with a rent advantage, and properties with rental assistance on at least 90% of units, are 90% and 1.11x. LIHTC without a rent advantage stays in the market-rate box. Cash-out is 80% of value.
- Term: Up to 35 years, fully amortizing, no balloon.
- Closing: 6 to 9 months.
- Best for: Long-term holds and qualifying affordable housing where the rate and leverage justify the timeline. Cash-out is 80% of value.
Side-by-side
| Feature | Fannie DUS | Freddie Optigo | HUD 223(f) |
|---|---|---|---|
| Max LTV | 80% | 80% | 87% market-rate; 90% qualifying affordable |
| Max term | 30 years | 15 years | 35 years |
| Amortization | Up to 30 years | Up to 30 years | Fully amortizing |
| Closing time | 45 to 60 days | 60 to 120 days | 6 to 9 months |
| Min loan | $5M | Generally $2 million | ~$3M practical |
| Recourse | Non-recourse | Non-recourse | Non-recourse |
Which one is right for your deal
Acquisition closing in 60 days? Fannie DUS or Freddie Optigo. Both routinely close in that window when the file is clean.
Smaller multifamily loan? Quote Freddie Mac Conventional Small and Fannie Mae’s small-loan program. New SBL applications ended April 30, 2026.
Long-term hold and chasing the lowest available coupon? HUD 223(f) is often inside conventional perm on the right deal, if you can afford the timeline.
Affordable or workforce housing? All three have specific programs and credit terms, run them in parallel.
Property below 90% occupied? None of the above. Bridge first, then agency at stabilization.