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    CapitalAx commercial lending

    Agency Lending Through Fannie Mae, Freddie Mac, and HUD

    The most competitive permanent financing in commercial real estate comes from government sponsored enterprises. Non recourse, 30+ year terms, and rates that conventional lenders rarely match.

    Fannie Mae, Freddie Mac, and HUD Lending Programs

    Agency loans are the gold standard for permanent multifamily and commercial financing. Fannie Mae (DUS), Freddie Mac (Optimus and SBL), and HUD/FHA programs offer non recourse structures, interest only periods, fully assumable terms, and fixed rates for up to 35 years. The catch is that agency lending has strict eligibility requirements around property condition, occupancy, and borrower experience, and the application process moves through approved correspondent lenders who control pricing and execution speed. CapitalAx works with multiple agency correspondents and delegated underwriters to shop your deal across competing execution platforms, ensuring you get the best rate, the most favorable prepayment structure, and a lender who can close on your timeline.

    Deal Structure at a Glance

    Loan Range
    Typically $1M to $100M+
    Terms
    Generally 5 to 35 years
    LTV
    Generally up to 80%
    Amortization
    Up to 35 years
    Recourse
    Non recourse available
    Prepayment
    Yield maintenance or defeasance

    Who Is This For?

    • Multifamily investors with stabilized apartment communities
    • Affordable housing developers and operators
    • Manufactured housing community owners
    • Senior housing and assisted living operators
    • Experienced borrowers seeking non recourse permanent debt

    Common Use Cases

    • Acquisition of stabilized multifamily properties
    • Rate and term refinance of existing apartment loans
    • Cash out refinance to access equity in multifamily assets
    • Affordable housing preservation and acquisition
    • Bridge to agency takeout for value add multifamily

    Borrower Scenarios

    Examples of how this financing can be used.

    A multifamily syndicator acquiring a 96 unit stabilized apartment community, placing a Fannie Mae DUS loan with a 12 year fixed rate, an interest only period, and full non recourse terms that protected the LP investors' personal assets.

    An affordable housing operator refinancing a 64 unit Section 8 property through Freddie Mac's targeted affordable housing program, locking in a 15 year fixed rate 40 basis points below conventional quotes with a supplemental loan provision for future capital needs.

    A manufactured housing community owner placing a Freddie Mac SBL loan on a 120 pad community with strong occupancy, closing on a streamlined timeline with a 10 year term at a rate 75 basis points below the best bank quote received.

    An investor completing a value add renovation on a 48 unit apartment building, transitioning from a 24 month bridge loan into a Fannie Mae permanent facility with a 35 year amortization and yield maintenance prepayment, cutting the all in rate substantially from the bridge coupon.

    Why Work With CapitalAx

    We help borrowers organize agency loans requests and compare lending sources that may fit the transaction.

    Multiple Agency Correspondent Relationships

    Agency loan pricing varies between correspondents because each has different servicing spreads and execution capabilities. We submit your deal to multiple Fannie Mae DUS lenders and Freddie Mac Optimus sellers simultaneously, creating competition for your business and ensuring you capture the best available rate.

    Structured Prepayment Analysis and Negotiation

    Agency prepayment provisions, yield maintenance, defeasance, and step downs, can cost hundreds of thousands of dollars if structured incorrectly. We model each option against your hold period and exit strategy, then negotiate the structure that minimizes your total cost of capital over the life of the loan.

    Bridge to Agency Transition Planning

    Many of our agency placements begin during the bridge loan phase. We pre qualify the property with agency correspondents before the bridge closes, so the permanent takeout terms are known and committed, eliminating the uncertainty that makes bridge loan exits stressful.

    Tools & Calculators

    Debt Yield Calculator

    Calculate debt yield from NOI and loan amount, and see the maximum loan a lender's debt yield floor allows.

    DSCR Calculator

    Calculate debt service coverage ratio to see if your property qualifies for DSCR financing.

    Max Loan Calculator

    Find out the maximum loan amount your property can support based on income and expenses.

    Loan Comparison Tool

    Compare multiple loan scenarios side by side to find the best financing structure.

    Related Loan Programs

    Commercial Mortgage
    DSCR Loans
    Bridge Loans
    Commercial Refinance

    Related Property Types

    Multifamily Financing
    Assisted Living Financing
    Mobile Home Park Financing

    Looking for a different financing structure? Browse all loan programs.

    Markets We Serve

    Austin, Texas
    Miami, Florida
    Atlanta, Georgia
    St. Louis, Missouri
    Stamford, Connecticut

    Related Articles

    Commercial Real Estate Loan Requirements
    How to Finance Commercial Property

    Frequently Asked Questions

    Fannie Mae DUS programs typically start at $1M, while Freddie Mac's Small Balance Loan (SBL) program covers properties from $1M to $7.5M with streamlined underwriting. HUD/FHA programs work for larger projects and new construction. Properties generally need 5+ units and stabilized occupancy above 85 90%.

    Non recourse means the lender's remedy in a default is limited to the property itself, not the borrower's personal assets. Agency loans include standard 'bad boy' carve outs for fraud, misrepresentation, and environmental issues, but routine business risk stays with the property. This structure protects borrowers' personal wealth and other investments.

    Yes, most Fannie Mae and Freddie Mac loans are fully assumable with lender approval. The new borrower must meet the agency's credit and experience requirements and pay an assumption fee, but the existing rate and terms transfer. This is a significant advantage when selling in a rising rate environment.

    Generally, agency financing is built for stabilized properties with reliable occupancy and operating history. A value add project that still needs renovation or lease up may use bridge financing first, then refinance into an agency loan once the property meets permanent lender standards. The required history and occupancy depend on the program and the specific asset.

    Both can offer long term, non recourse financing for qualifying properties, but agency programs are centered on multifamily and certain specialized housing assets. CMBS can fit a wider group of commercial property types. The better option depends on the asset, leverage, prepayment needs, and the borrower's plan to hold, sell, or refinance.

    Cash out refinancing may be available when the property, borrower, and program qualify. Lenders review the reason for the proceeds, the property's stabilized cash flow, leverage, coverage, and any existing loan terms. The available proceeds and structure are determined in underwriting, not from a single headline limit.

    Ready to Move Forward?

    Send us the basics on your deal, we'll come back with real options, not a generic pitch.