Within the federal government, several agencies are committed to providing lending support for multifamily rental properties. Among them are FNMA, FHLMC, and HUD.

Federal National Mortgage Association (FNMA): Founded in 1938 during the Great
Depression, FNMA (also known as Fannie Mae) is a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise (GSE). Its purpose is to purchase and securitize mortgages so that funds are consistently available to institutions that lend money to homebuyers. Fannie Mae provides multifamily financing for affordable and market-rate rental housing, and operates nationally, in all multifamily markets and under all economic conditions. Eighty-nine percent of the rental housing financed by Fannie Mae lenders is affordable to families at or below the median income of their communities.

Fannie Mae provides financing through a nationwide network of Delegated Underwriting and Servicing (DUS®) and other lenders (collectively known as, Agency Lenders). Agency Lenders also increase the availability of affordable multifamily housing through investments in properties that qualify for federal housing tax credits.

Working with nonprofit and for-profit sponsors, Fannie Mae makes funds available for affordable housing through investments in individual properties or groups of properties. Fannie Mae loans may be used for the acquisition, new construction, refinancing or moderate or substantial rehabilitation of multifamily housing, including senior and student housing as well as manufactured home communities.

Federal Home Loan Mortgage Corporation (FHLMC): In 1970, Congress created
FHLMC (also known as Freddie Mac) with three important goals in mind:

1. Ensure financial institutions have mortgage money to lend;
2. Make it easier for consumers to afford a decent house or apartment; and
3. Keep residential mortgage markets stabilized in times of financial crisis.

To fulfill its mission, Freddie Mac conducts business in the U.S. secondary mortgage market, working with a national network of mortgage lending customers. Freddie Mac provides a full range of competitively priced, reliable mortgage products for the acquisition, new construction, refinancing or moderate or substantial rehabilitation of multifamily housing, including senior and student housing as well as manufactured home communities.

Freddie Mac Lending Programs

Standard Mortgage
Provides loan programs for acquisition or refinance of multifamily rental properties.
• 5, 7, 10, 15, 20, 25 and 30 year fully amortizing
• Up to 80% LTV for acquisitions (lower for short term loans)
• Up to 75% LTV for refinances (lower for short term loans)
• Minimum debt service coverage ranges from 1.05 to 1.35 (higher for short term loans)
• Cash out refinances available at higher DSC

Construction Takeout
Provides loan programs for construction takeout of multifamily rental properties.
• 5, 7, 10, 15, 20, 25 and 30 year fully amortizing
• Up to the lower of 80% LTV or 90% LTC (lower for short term loans)
• Minimum debt service coverage ranges from 1.10 to 1.15 (higher for short term loans)

Rehabilitation Mortgage
Provides loan programs for moderate rehabilitation of multifamily rental properties.
• 5, 7, 10, 15, 20, 25 and 30 year fully amortizing
• Up to 80% LTV (lower for the short term loans)
• Minimum debt service coverage ranges from 1.25 to 1.30 (higher for short term loans)

Student Housing Program
Provides loan programs for acquisition or refinance of student housing rental properties.
• 5, 7, and 10 year fully amortizing
• Up to 80% LTV for acquisitions (lower for short term loans)
• Up to 75% LTV for refinances (lower for short term loans)
• Minimum debt service coverage ranges from 1.30 to 1.35 (higher for short term loans)
• Cash out refinances are available at higher debt service coverage

Senior Housing Program
Provides loan programs for acquisition or refinance of senior housing rental properties.
• 5, 7, 10, 15, 20, 25 and 30 year fully amortizing
• Up to 75% LTV for acquisitions (lower for short term loans)
• Up to 70% LTV for refinances (lower for short term loans)
• Minimum debt service coverage ranges from 1.30 to 1.35 (higher for short term loans)
• Cash out refinances are available at higher debt service coverage

U.S. Department of Housing and Urban Development (HUD): HUD’s mission is
to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD offers several programs targeting multifamily and healthcare facilities.

Within HUD, the Federal Housing Administration (FHA) provides mortgage insurance on loans made by FHA-approved Agency Lenders throughout the United States and its territories. FHA mortgages are for acquisition, new construction, refinancing or substantial rehabilitation of multifamily housing, including senior and student housing as well as manufactured home communities.

FHA Multifamily Lending Programs

FHA Section 207/221(d) Loans
Provides mortgage insurance for new construction or substantial rehabilitation of multifamily rental properties
• 5 or more units
• Up to 85% LTV
• Up to 35 years fully amortized
• Construction to permanent loans available up to 90% LTV (100% for non-profits) and up to 40 years

FHA Section 207/223(f) Loans
Provides mortgage insurance for purchase or refinance of existing multifamily rental properties
• 5 or more units
• Up to 85% LTV for purchases
• Up to 80% LTV for refinances
• Up to 35 years fully amortized

FHA Section 207/234(d) Loans
Provides mortgage insurance for new construction or substantial rehabilitation of multifamily condominium properties
• 5 or more units
• Up to 85% LTV
• Up to 35 years fully amortized

FHA Section 207 Loans for Manufactured Home Parks
Provides mortgage insurance for construction or substantial rehabilitation of manufactured home parks
• 5 or more units
• Up to 85% LTV for purchases
• Up to 80% LTV for refinances
• Up to 35 years fully amortized

FHA Section 232 Loans for Long-Term Care Facilities
Provides mortgage insurance for construction, acquisition, refinance, or substantial rehabilitation of long-term care facilities.
• 20 or more residents
• Up to 90% LTV (95% for non-profits) for new construction or substantial rehabilitation
• Up to 85% LTV (90 % for non-profits) for purchases or refinances
• Up to 35 years fully amortized

FHA Section 232/223(f) Loans for Healthcare Facilities
Provides mortgage insurance for acquisition, refinance, or moderate rehabilitation of existing healthcare facilities.
• Up to 85% LTV (90% for non-profits)
• Up to 35 years fully amortized