The most competitive permanent financing in the market for multifamily and affordable housing. Government-sponsored execution with certainty, scale, and pricing power.
Agency lending is the origination of commercial real estate mortgages through the government-sponsored enterprises (GSEs) — Fannie Mae, Freddie Mac, and the U.S. Department of Housing and Urban Development (HUD/FHA). These agencies do not lend directly to borrowers. Instead, they authorize approved lenders to originate loans under their programs, then purchase or securitize those loans, creating deep liquidity for multifamily and affordable housing finance. Agency and GSE portfolios hold the largest share of multifamily mortgage debt outstanding in the United States, making them the dominant capital source for apartment and workforce housing.
Fannie Mae operates through its Delegated Underwriting and Servicing (DUS) program, where approved lenders retain a portion of the credit risk and make independent underwriting decisions. Freddie Mac uses its Optigo seller/servicer network, with most loans securitized into K-Series or SBL (small balance loan) bond offerings. HUD/FHA offers the longest terms and highest leverage through programs including Section 223(f) for acquisition and refinancing and Section 221(d)(4) for new construction — both providing fully amortizing, non-recourse financing with terms up to 35 years.
Typical agency loan terms include 5 to 35 year fixed rates, leverage up to 80% loan-to-value, non-recourse structures, and 30-year amortization schedules. The result is stable, long-term capital at pricing that consistently undercuts most private capital sources — particularly for stabilized, institutional-quality multifamily properties.
Agency lending is not a commodity. The difference between an adequate execution and an exceptional one is measured in basis points, structure, and certainty — and that difference compounds over a 10, 15, or 35-year hold. George Smith Partners maintains direct relationships with every major DUS lender and Freddie Mac Optigo seller/servicer in the country, allowing us to run a competitive process that surfaces the best available execution for each transaction.
Our advisory goes beyond rate shopping. We evaluate which GSE program — Fannie Mae DUS, Freddie Mac conventional, Freddie Mac SBL, or HUD/FHA — offers the optimal structure for each asset and business plan. For borrowers seeking maximum proceeds, we layer supplemental financing or mezzanine capital behind agency first mortgages. For those prioritizing rate and term, we structure fixed-rate executions that lock in generational pricing.
George Smith Partners has placed hundreds of millions of dollars in agency financing for multifamily sponsors ranging from first-time borrowers to publicly traded REITs. Our team understands the underwriting nuances of each agency program, the timing of rate locks, and how to position properties to achieve the strongest possible credit decision.
Agency lending is designed primarily for stabilized multifamily housing — market-rate apartments, workforce housing, affordable housing with income and rent restrictions, and seniors housing communities. Properties generally must demonstrate stabilized occupancy and consistent cash flow to qualify. Fannie Mae and Freddie Mac also finance student housing, manufactured housing communities, and cooperative housing under specialized programs. Properties requiring significant renovation or in lease-up typically do not qualify for agency execution and are better served by bridge or debt fund capital until stabilization.
Agency lending refers to mortgage financing originated through government-sponsored enterprises (GSEs) — primarily Fannie Mae and Freddie Mac — as well as HUD/FHA programs. These agencies purchase or securitize multifamily loans, allowing approved lenders to offer highly competitive, non-recourse financing with long terms and fixed rates. Agency lending represents the largest source of capital for multifamily real estate in the United States.
Both GSEs provide non-recourse, fixed-rate multifamily financing, but they differ in execution. Fannie Mae operates through its Delegated Underwriting and Servicing (DUS) program, where approved lenders share risk and make credit decisions independently. Freddie Mac uses its Optigo network of approved seller/servicers, with loans typically securitized into K-Series bonds. Fannie Mae is often more flexible on smaller loans and supplemental financing, while Freddie Mac is highly competitive on larger stabilized assets. George Smith Partners evaluates both programs for every engagement to determine which offers the best execution.
Agency loans typically require stabilized occupancy of 90% or higher for at least 90 days, a minimum debt service coverage ratio (DSCR) of 1.25x, and borrower net worth equal to the loan amount with liquidity of at least 10% of the loan balance. Property condition must meet agency standards, and a third-party environmental and engineering report is required. Requirements vary by program — Fannie Mae DUS loans may have slightly different thresholds than Freddie Mac Optigo executions.
Agency loans typically close in 45 to 90 days from application, depending on the program and complexity. Freddie Mac streamlined products for smaller loans can close faster, while HUD/FHA loans — which offer the longest terms (up to 35 years) and highest leverage — can take 90 to 180 days due to additional government review and approval requirements.
Yes, the agencies are among the most active capital sources for affordable and workforce housing. Fannie Mae offers dedicated affordable housing products including the Multifamily Affordable Housing (MAH) program with enhanced proceeds for properties with income and rent restrictions. Freddie Mac provides its Tax-Exempt Loan (TEL) program and targeted affordable housing products. HUD/FHA programs — including 221(d)(4) for new construction and 223(f) for acquisition/refinancing — are specifically designed for affordable housing with the most favorable terms available in the market.