The Federal Housing Finance Agency's 2025 lending caps for Fannie Mae and Freddie Mac demonstrate strong agency support for multifamily projects by setting a $73 billion cap for each agency, totaling $146 billion, which marks a 4% increase from 2024.
This initiative emphasizes a focus on affordable housing, as at least 50% of the GSEs' multifamily business must be mission-driven, with loans financing workforce housing exempt from the limits.
Additionally, the FHFA will monitor the market and may increase caps if necessary, ensuring continued liquidity and flexibility in financing.
Importantly, the caps will not be lowered even if the market is smaller than projected, providing certainty for lenders and developers.
Collectively, these measures create attractive financing options for multifamily projects, particularly those aimed at affordable and workforce housing, while also promoting stability in the housing market as more loans are expected to mature in 2025.
Ashland is using agency financing for our Brentlinger Park - Louisville opportunity and sees greater support in the capital markets for strong multifamily and student housing investments.
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