The Federal Housing Finance Agency (FHFA) announced that the 2025 multifamily loan purchase caps for Fannie Mae and Freddie Mac (the Enterprises) will be $73 billion for each Enterprise, for a combined total of $146 billion to support the multifamily market. The 2025 caps are up from the $70 billion caps set for 2024 and reflect an anticipated expansion of the multifamily originations market in 2025.
The FHFA requires that at least 50 percent of the Enterprises’ multifamily business be mission-driven affordable housing. This is the same percentage goal as in 2024. Continuing the practice from 2024, multifamily loans that finance workforce housing are not subject to the cap.
“The 2025 multifamily loan caps reflect the Enterprises’ strong commitment to provide liquidity to make renting a home more affordable,” said 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.”
To ensure the Enterprises continue to provide sufficient liquidity and support in the multifamily mortgage market, FHFA will continue to monitor the multifamily mortgage market and will update the multifamily caps and mission-driven requirements if adjustments are warranted. However, to prevent market disruption, if FHFA determines that the actual size of the 2025 market is smaller than was initially projected, FHFA will not reduce the caps.
The Mortgage Bankers’ Association (MBA) reports that the Enterprises are by far the largest holders of multifamily mortgage debt with a nearly 50 percent market share.
Responding to the announcement, MBA President and CEO Bob Broeksmit said, “The 4 percent increase in the multifamily loan purchase caps to $73 billion for each GSE is appropriate, given the slightly improved market conditions and lending activity that’s expected next year due to the slow decline in interest rates. The cap levels should ensure that the GSEs are a viable option for lenders that finance properties that serve lower-income households and those living in rural areas.”
More information on the 2025 program is available here.
