The Federal Housing Finance Agency (FHFA) announced that it has set the multifamily loan purchase caps for Fannie Mae and Freddie Mac in 2025, with an increase over the current year by $6 billion. The loan purchase cap will be $73 billion for each Government Sponsored Enterprise (GSE), with a total of $146 billion.
According to the FHFA, the purpose of the caps is to ensure the GSEs support liquidity in the multifamily market, particularly for affordable housing and underserved segments, without crowding out private capital.
FHFA will continue to require that at least 50 percent of the GSEs’ multifamily businesses be mission-driven, affordable housing, and loans that finance workforce housing will be excluded from the volume caps. Originally introduced as a way to expand preservation of workforce housing, the exclusion of workforce housing loans from the caps for Fannie Mae and Freddie Mac have resulted in over $4.5 billion in workforce loans through the third quarter of 2024, more than doubling the combined total in 2023.
“The higher caps for 2025 are an encouraging sign that the GSEs are optimistic about lending volume increasing in the next year,” said Richard Martinez, head of Agency lending production at Greystone. “We are poised to support our clients serving the multifamily market, particularly the affordable and workforce housing sectors, as we continue our close working relationships with Fannie Mae and Freddie Mac as leading lenders for both.”
“The 2025 multifamily loan caps reflect the Enterprises’ strong commitment to provide liquidity to make renting a home more affordable,” commented FHFA Director Sandra L. Thompson. “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.”
For more information about the 2025 multifamily loan purchase caps for Fannie Mae and Freddie Mac, click for a fact sheet from FHFA.