FHFA Announces Fannie Mae, Freddie Mac Multifamily Loans Purchase Caps for 2021
The Federal Housing Finance Agency (FHFA) today announced that the 2021 multifamily loan purchase caps for Fannie Mae and Freddie Mac (the Enterprises) will be $70 billion for each Enterprise. The cap structure allows the Enterprises to offer a combined total of $140 billion in support to the multifamily market.
At least 50% of the Enterprises multifamily loans are required to be used for affordable housing. Under the 2020 cap structure, 37.5% of the multifamily business had to be mission-driven, affordable housing.
Additionally, for the first time, affordable housing manufactured housing communities (MHC) must either be resident/government/nonprofit-owned or must have tenant pad lease protections to be counted as mission-driven, affordable housing.
FHFA also requires at least 20% of the Enterprises’ multifamily business be affordable to residents at 60% Area Median Income (AMI) or below. FHFA says that this new minimum share of business affordable to 60% of AMI households will assure that the Enterprises' multifamily businesses have a strong and growing commitment to affordable housing finance, particularly for residents and communities that are most difficult to serve.
View the FHFA press release.