Agency Loans
Agency loans provide government-backed financing with competitive terms for investors and developers looking to acquire, refinance, or construct multifamily properties with five or more units. These loans offer long-term stability, attractive interest rates, and flexible repayment options, making them an ideal choice for expanding your real estate portfolio.
What Are Agency Loans?
Agency loans are multifamily-focused financing solutions sponsored by government-backed entities, designed to support the acquisition, development, and refinancing of large-scale residential properties. Offered primarily through Fannie Mae and Freddie Mac, these loans provide:
- Lower interest rates compared to conventional financing
- Non-recourse options for borrower protection
- Longer loan terms (up to 30 years)
- High leverage financing, often up to 80% LTV
Additionally, HUD/FHA-insured loans support affordable housing and community development projects, ensuring accessibility to capital for developers focusing on workforce and low-income housing initiatives.
ADVANTAGES OF
Agency Loans
- Leverage Fannie Mae and Freddie Mac financing for large-scale multifamily acquisitions, new construction, and property improvements.
- Enjoy fixed or floating-rate structures, extended amortization periods, and customized repayment plans to maximize cash flow.
- Backed by federal agencies, these loans reduce risk for lenders while providing borrowers with favorable lending conditions.
- Many agency loan programs offer incentives for green building improvements, energy efficiency, and affordable housing initiatives.