The Federal Housing Finance Agency (FHFA) this week announced the 2025 multifamily loan purchase cap structure for both Fannie Mae and Freddie Mac (the Enterprises).
Loan purchase caps have been set to $73 billion for each government-sponsored Enterprise for a combined total of $146 billion. This is a 4.3% increase compared to 2024 when the caps were $70 billion each.
As with 2024, multifamily loans that finance workforce housing will be excluded from the 2025 limits as part of ongoing efforts to promote affordable housing preservation. In addition, FHFA is continuing to require that at least 50% of the Enterprises’ multifamily business must be for mission-driven, affordable housing.
The FHFA indicated that it will continue to monitor the multifamily mortgage market to ensure sufficient liquidity and support. Caps may be updated as needed, however if the size of the 2025 market trends smaller than anticipated, the cap structure detailed above will remain in place. The purpose of the caps is to ensure the Enterprises support liquidity in the multifamily market, especially affordable housing and underserved segments, without crowding out private capital.
Lument’s commitment to affordable and workforce housing as well as to sustainability is reflected in the Enterprises’ caps for the year ahead. Accordingly, we look forward to leveraging our relationships with Fannie Mae and Freddie Mac, as well as our expertise, on our clients’ behalf.
For more information, contact us.
