The Federal Housing Finance Agency (FHFA) recently announced it is raising the multifamily loan purchase cap for Fannie Mae and Freddie Mac to $73 billion, a more than 4 percent spike from 2024. At least half of the multifamily businesses will be required to be mission-driven.
The agency regulates Fannie Mae and Freddie Mac, government-sponsored enterprises, that along with 11 federal home loan banks provide more than $8.4 trillion in funding. Caps are established annually.
“The 2025 multifamily loan caps reflect the enterprises’ strong commitment to provide liquidity to make renting a home more affordable,” FHFA Director Sandra L. Thompson said. “Additionally, the ongoing workforce housing exemption will continue to enhance the Enterprises’ ability to support properties that preserve affordable rents, including properties preserved or created through corporate-sponsored affordable housing initiatives.”
The FHFA will monitor the multifamily mortgage market and will further raise the caps if necessary to support liquidity in the market. If the FHFA determines that the actual size of the 2025 market is smaller than initially projected, it will not lower the caps to prevent market disruption.
Fannie Mae and Freddie Mac have seen growth in the work force housing segment, which was first exempted from the caps, over the past year.