The program book
Multifamily loan program terms, with the exact wording
Every limit the comparison app uses, quoted from the agency document it came from, with that document's date. Compiled 2026-10-24. Where a source gives no number, it says "not published", and the app doesn't invent one.
Jump to a program
- Fannie Mae DUS Conventional properties
- Fannie Mae Small Loans Up to $9 million
- Freddie Mac Optigo Conventional Fixed rate, $10 million and up
- Freddie Mac Conventional Small $2M to $10M, 5 to 50 units
- HUD 223(f) Purchase or refinance
- HUD 221(d)(4) New construction or substantial rehab
- HUD 223(a)(7) Refinance of an FHA-insured loan
- SBA 7(a) and 504 Small business loans
- Bank or credit union Portfolio loan
- CMBS conduit Securitized loan
- Bridge loan Short-term, transitional
- DSCR investor loan Non-QM business-purpose
Fannie Mae's website blocks automated readers, so its term sheets were read from Internet Archive copies of the same files. Each is labeled with the date of the copy. Re-checking them against the live site is on our list.
The headline limits
| Program | Max LTV or LTC | Min DSCR | Term | Prepayment |
|---|---|---|---|---|
| Fannie Mae DUS | 80% | 1.25x | 5 to 30-yr term, up to 30-yr amortization | Yield maintenance (fixed rate); declining premium (variable rate) |
| Fannie Mae Small Loans | 80% | 1.25x | 5 to 30-yr term, up to 30-yr amortization | Yield maintenance or a declining premium |
| Freddie Mac Optigo Conventional | 75% under 7-yr terms, 80% at 7+ (65-70% if full-term interest-only) | 1.25x | 5 to 10-yr term, up to 30-yr amortization | Yield maintenance until securitized, 2-yr lockout, then defeasance; open the last 90 days |
| Freddie Mac Conventional Small | 75% under 7-yr terms, 80% at 7+ | 1.25x | 5, 7, 10, 12 or 15-yr term, up to 30-yr amortization | Yield maintenance, 2-yr lockout, then defeasance; step-down available at extra cost |
| HUD 223(f) | 87% market rate; 90% affordable or 90%+ assisted | 1.15x market rate; 1.11x affordable or assisted | Up to 35 years, fully amortizing | Barred for 5 years after endorsement by statute (limited exceptions) |
| HUD 221(d)(4) | LTC 87% market rate; 90% affordable or assisted | 1.15x market rate; 1.11x affordable or assisted | Construction period, then up to 40 years | HUD permits but does not impose restrictions; the lender sets them |
| HUD 223(a)(7) | No LTV test; capped at the cost to refinance | 1.11x (1.05x if over 90% project-based Section 8) | Remaining term plus up to 12 years | HUD does not impose restrictions; the lender sets them |
| SBA 7(a) and 504 | n/a | n/a | n/a | n/a |
| Bank or credit union | Not published | Not published | Not published | Not published |
| CMBS conduit | Not published | Not published | Not published | Not published |
| Bridge loan | Not published | Not published | Not published | Not published |
| DSCR investor loan | Not published | Not published | Not published | Not published |
Fannie Mae
Fannie Mae DUS: conventional properties
Fannie Mae DUS Mortgage Loans: Conventional Properties (fixed- and variable-rate)
Unless a line says otherwise, the terms below come from Per Fannie Mae term sheet (copy dated 2025-11-17) (archived copy).
- Eligible properties
- Existing, stabilized conventional multifamily properties with a minimum of five units; credit-worthy single-asset U.S. borrower
Existing, stabilized conventional properties • Properties with a minimum of five units
- Minimum loan
- not published No minimum loan amount stated; the Recourse row says non-recourse is available for most loans greater than $750,000 (not a stated minimum).
- Maximum loan
- not published No maximum loan amount stated on the term sheet.
- Max LTV, purchase
- 80%
Maximum LTV 80%
- Max LTV, refinance
- 80% (term sheet gives one Maximum LTV for acquisition or refinance)
Maximum LTV 80%
- Max LTV, cash-out
- not published examine the risk of allowing cash out to the Borrower (see Form 4660 for a description of cash out transactions) Multifamily Guide Part II, Ch. 2: Valuation and Income (Sec. 203-205), Multifamily Selling and Servicing Guide, effective as of September 28, 2026 (live page retrieved 2026-10-24); Part II, Ch. 2, Sec. 205
- Min DSCR
- 1.25x
Minimum DSCR 1.25x
- Amortization
- Up to 30 years
Amortization Up to 30 years
- Term
- 5 to 30 years
Term 5 - 30 years
- Rate type
- Fixed- and variable-rate options available
Interest Rate Fixed- and variable-rate options available
- Prepayment
- Yield maintenance for fixed-rate loans; declining prepayment premium for variable-rate loans
Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and declining prepayment premium for variable-rate loans.
- Recourse
- Non-recourse available for most loans greater than $750,000, with standard bad-act carve-outs
Non-recourse execution is available for most loans greater than $750,000. Standard carve-outs required for “bad acts” such as fraud and bankruptcy.
- Assumability
- Typically assumable, subject to review and approval of the new borrower
Loans are typically assumable, subject to review and approval of the proposed new borrower’s financial capacity and experience.
- Closing time
- not published No closing timeline stated; only rate lock: 30- to 180-day commitments.
- Other terms
-
- Occupancy: Stabilized occupancy (typically 90%) for 90 days prior to funding
- Rate lock: 30- to 180-day commitments; Streamlined Rate Lock option
- Interest accrual: 30/360 and Actual/360
- Escrows: Replacement reserve, tax, and insurance escrows typically required
- Fixed-rate term sheet: Fixed-Rate Mortgage Loans term sheet: term 5-30 yrs, amortization up to 30 yrs, max LTV 80% and min DSCR 1.25x for Conventional properties, prepay via yield maintenance or prepayment premium Per Fannie Mae term sheet (copy dated 2025-04-18)
- DUS umbrella term sheet: DUS Mortgage Loans umbrella term sheet: LTV and DSCR vary by asset class and product type Per Fannie Mae term sheet (copy dated 2025-11-17)
Fannie Mae
Fannie Mae Small Loans: up to $9 million
Fannie Mae Small Mortgage Loans
Unless a line says otherwise, the terms below come from Per Fannie Mae term sheet (copy dated 2025-12-17) (archived copy).
- Eligible properties
- Conventional Properties; Multifamily Affordable Housing Properties; Cooperative Properties (market rate); Manufactured Housing Communities; existing, stabilized, 5+ units; acquisition or refinance
Conventional Properties; Multifamily Affordable Housing Properties; Cooperative Properties (market rate); and Manufactured Housing Communities
- Minimum loan
- not published No minimum stated; term sheet gives only 'Up to $9 million nationwide'.
- Maximum loan
- $9 million (nationwide). Confirmed in Guide Part III, Ch. 9, Sec. 901.01 (node 3531): original loan amount less than or equal to $9 million.
Loan Amount Up to $9 million nationwide
- Max LTV, purchase
- 80%
Maximum LTV 80%
- Max LTV, refinance
- 80% (single Maximum LTV for acquisition or refinance)
Maximum LTV 80%
- Max LTV, cash-out
- not published Term sheet does not give a separate cash-out LTV; Guide defers to Form 4660, which was not retrievable.
- Min DSCR
- 1.25x
Minimum DSCR 1.25x
- Amortization
- Up to 30 years
Amortization Up to 30 years
- Term
- 5 to 30 years
Term 5 - 30 years
- Rate type
- Fixed- and variable-rate options available
Interest Rate Fixed- and variable-options available
- Prepayment
- Flexible: yield maintenance and declining prepayment premium
Flexible prepayment options available, including yield maintenance and declining prepayment premium.
- Recourse
- Non-recourse with standard bad-act carve-outs; Guide 902 requires a Non-Recourse Guaranty (Form 6015) from each Key Principal
Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.
- Assumability
- Non-recourse Small Mortgage Loans typically assumable, subject to review and approval
Non-recourse Small Mortgage Loan are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
- Closing time
- not published No closing timeline stated; rate lock 30- to 180-day commitments.
- Other terms
-
- Guide definition: Small Mortgage Loan = original loan amount <= $9 million Multifamily Guide Part III, Ch. 9: Small Mortgage Loans, Multifamily Selling and Servicing Guide, effective as of September 28, 2026 (live page retrieved 2026-10-24); Part III, Ch. 9, Sec. 901.01
- Occupancy: 10+ units: at least 90% physical occupancy for 90 days before Commitment; <10 units: no more than 1 vacant unit and 90% average occupancy over 12 months; MHC follows Part II Sec. 107 Multifamily Guide Part III, Ch. 9: Small Mortgage Loans, Multifamily Selling and Servicing Guide, effective as of September 28, 2026 (live page retrieved 2026-10-24); Part III, Ch. 9, Sec. 903
- Escrows: Replacement reserve, tax, and insurance escrows typically required for higher leverage transactions
- Third-party reports: Streamlined inspection and Environmental Screening (ASTM E-1528-14)
Freddie Mac
Freddie Mac Optigo Conventional: fixed rate, $10 million and up
Optigo Fixed-Rate Loans (Conventional)
Unless a line says otherwise, the terms below come from Optigo Fixed-Rate Loans term sheet, 4/26 (footer); server Last-Modified 2026-05-06.
- Eligible properties
- Standard multifamily, student housing, seniors housing, manufactured housing communities, Targeted Affordable Housing, conventional structured transactions; acquisition or refinance; eligible mixed-use
Standard multifamily housing, student housing, seniors housing, manufactured housing communities and Targeted Affordable Housing
- Minimum loan
- $10,000,000
Minimum $10 million
- Maximum loan
- not published Term sheet states only 'Minimum $10 million'; no maximum
- Max LTV, purchase
- Amortizing/partial IO: 75% (>=5 and <7-yr term), 80% (7-yr and >7-yr term); full-term IO: 65%/65%/70%. Max combined maturity LTV for partial IO 70%. Not differentiated by purchase vs refinance.
7-Year Term 1.25x 80% 1.25x 65%
- Max LTV, refinance
- Amortizing/partial IO: 75% (>=5 and <7-yr term), 80% (7-yr and >7-yr term); full-term IO: 65%/65%/70%. Max combined maturity LTV for partial IO 70%. Not differentiated by purchase vs refinance.
> 7-Year Term 1.25x 80% 1.25x 70%
- Max LTV, cash-out
- not published No separate cash-out LTV; Refinance Test waived if amortizing DCR >=1.40x and LTV <=60%
- Min DSCR
- 1.25x amortizing DCR for all terms and payment types; adjustments may be made by property, product and/or market
Adjustments may be made depending on the property, product and/or market.
- Amortization
- 30 years
Maximum Amortization 30 years
- Term
- 5- to 10-year terms (up to 30 years if loan is not purchased for securitization)
5- to 10-year terms (up to 30 years if loan is not purchased for securitization)
- Rate type
- Fixed (separate Optigo Floating-Rate Loan term sheet: 5/7/10-yr, 30-day Average SOFR, min $10M, same LTV/DCR grid, four step-down prepayment options)
Optigo® Fixed-Rate Loans
- Prepayment
- Yield maintenance until securitized, then 2-year lock-out, then defeasance; open final 90 days; YM without defeasance available at additional cost
Yield maintenance until securitized followed by 2-year lock-out; defeasance thereafter. No prepayment premium for final 90 days.
- Recourse
- Non-recourse except standard carve-outs
Non-recourse except for standard carve-out provisions
- Assumability
- Not stated on term sheets. Guide Chapter 41 sets procedures for permitted, conditionally permitted and prohibited Transfers of Ownership (assumptions), requiring Servicer/Freddie consent; no assumption fee on term sheet.
permitted, conditionally permitted, and prohibited Transfers of Ownership in the Property (assumptions)
Multifamily Seller/Servicer Guide Chapter 41, Transfers of Ownership, Guide Bulletin Update 10/20/26 (chapter footer) - Closing time
- not published No closing timeline stated; early rate-lock typically 60 to 120 days until Freddie Mac purchase
- Floating-rate version
-
- Name: Optigo Floating-Rate Loan Optigo Floating-Rate Loan term sheet, 4/26 (footer); server Last-Modified 2026-05-06
- Minimum loan: $10,000,000 Optigo Floating-Rate Loan term sheet, 4/26 (footer); server Last-Modified 2026-05-06
- Term: 5-, 7- and 10-year terms Optigo Floating-Rate Loan term sheet, 4/26 (footer); server Last-Modified 2026-05-06
- Index: 30-day Average SOFR Optigo Floating-Rate Loan term sheet, 4/26 (footer); server Last-Modified 2026-05-06
- LTV and DCR: Amortizing/partial IO: 75% (>=5 and <7-yr term), 80% (7-yr and >7-yr term); full-term IO: 65%/65%/70%. Max combined maturity LTV for partial IO 70%. Not differentiated by purchase vs refinance. Min amortizing DCR 1.25x. Optigo Floating-Rate Loan term sheet, 4/26 (footer); server Last-Modified 2026-05-06
- Amortization: 30 years Optigo Floating-Rate Loan term sheet, 4/26 (footer); server Last-Modified 2026-05-06
- Prepayment: Four options, none in final 90 days: Opt1 locked yr1 then 1%; Opt2 3/2/1%; Opt3 5/4/3/2/1%; Opt4 (10-yr capped only) 7/6/5/4/3/2/1% Optigo Floating-Rate Loan term sheet, 4/26 (footer); server Last-Modified 2026-05-06
- Recourse: Non-recourse except standard carve-outs Optigo Floating-Rate Loan term sheet, 4/26 (footer); server Last-Modified 2026-05-06
- Rate cap: Multiple cap options available; borrower may obtain its own cap from an approved third-party provider Optigo Floating-Rate Loan term sheet, 4/26 (footer); server Last-Modified 2026-05-06
Freddie Mac
Freddie Mac Conventional Small: $2m to $10m, 5 to 50 units
Optigo Conventional Small (successor to Small Balance Loan program)
Unless a line says otherwise, the terms below come from Optigo Conventional Small term sheet, 4/26 (footer); server Last-Modified 2026-08-24.
- Status
- Former Small Balance Loan (SBL) program retired: SBL applications not accepted as of April 30, 2026. Replaced by 'Optigo Conventional Small', launched April 15, 2026 under the core Conventional platform.
we are no longer accepting SBL applications as of April 30, 2026
Guide Bulletin M2026-3 (SBL retirement notice), Guide Bulletin M2026-3, June 23, 2026 - Announcement
- News release April 15, 2026: 'Freddie Mac Multifamily Announces Launch of Integrated Conventional Small Product for Loans Under $10 Million'
announced the availability of an integrated, streamlined Conventional Small lending product under its core Conventional lending platform
Freddie Mac Multifamily news listing: Launch of Integrated Conventional Small Product for Loans Under $10 Million, April 15, 2026 - Eligible properties
- Standard multifamily, predominantly market-rate, 5 to 50 units; acquisition or refinance; eligible mixed-use. Excludes student, seniors, manufactured housing communities, cooperatives. Ineligible: fractured/vertical condos, DSTs, HAP contracts, master/ground leases, scattered site, co-living, septic/well, micro-units >5%. No hard subordinate debt.
Predominantly market-rate properties of 5 to 50 units
- Minimum loan
- $2,000,000
Generally, $2 million to $10 million
- Maximum loan
- $10,000,000
Generally, $2 million to $10 million
- Max LTV, purchase
- Amortizing/partial IO: 75% (>=5 and <7-yr term), 80% (7-yr and >7-yr term); full-term IO: 65%/65%/70%. Max combined maturity LTV for partial IO 70%. Not differentiated by purchase vs refinance.
7-Year Term 1.25x 80% 1.25x 65%
- Max LTV, refinance
- Amortizing/partial IO: 75% (>=5 and <7-yr term), 80% (7-yr and >7-yr term); full-term IO: 65%/65%/70%. Max combined maturity LTV for partial IO 70%. Not differentiated by purchase vs refinance.
> 7-Year Term 1.25x 80% 1.25x 70%
- Max LTV, cash-out
- not published No separate cash-out LTV; Refinance Test waived if amortizing DCR >=1.40x and LTV <=60%
- Min DSCR
- 1.25x amortizing DCR for all terms and payment types
Adjustments may be made depending on the property, product and/or market.
- Amortization
- 30 years
Maximum Amortization 30 years
- Term
- 5, 7, 10, 12 or 15-year terms
5, 7, 10, 12 or 15-year terms.
- Rate type
- Fixed-rate only
Through our Conventional Small fixed-rate loans
- Prepayment
- Standard: yield maintenance until securitized, then 2-year lock-out, then defeasance; open final 90 days. Step-down and YM without defeasance available at additional cost
Step-down and yield maintenance without defeasance are available at an additional cost
- Recourse
- Non-recourse except standard carve-outs
Non-recourse except for standard carve-out provisions
- Assumability
- Not stated on term sheets. Guide Chapter 41 sets procedures for permitted, conditionally permitted and prohibited Transfers of Ownership (assumptions), requiring Servicer/Freddie consent; no assumption fee on term sheet.
permitted, conditionally permitted, and prohibited Transfers of Ownership in the Property (assumptions)
Multifamily Seller/Servicer Guide Chapter 41, Transfers of Ownership, Guide Bulletin Update 10/20/26 (chapter footer) - Closing time
- not published No closing timeline stated; spread lock for 60 days post-loan application
- Other terms
- Application fee 0.1% of loan amount; standard loan documents without modifications; borrower must be SPE; TIC with 5 or fewer tenants in common
Application Fee 0.1% of loan amount
HUD / FHA
HUD 223(f): purchase or refinance
FHA Section 207/223(f) – purchase or refinance of existing multifamily rental housing
Unless a line says otherwise, the terms below come from HUD Handbook 4430.G Multifamily Accelerated Processing (MAP) Guide, Revision March 19, 2021 (the '2020 MAP Guide'), 2021-03-19 (MAP Guide 4430.G 'Revision March 19, 2021'; hud.gov lists it as '2020 MAP Guide (03/24/2021)').
- Eligible properties
-
- General: existing rental housing with at least 5 residential units; no substantial rehab; C of O 3+ years (or newer once programmatic DSCR met)
- Not eligible (MAP Guide): manufactured home parks, group homes, projects providing meal services (exceptions noted), properties needing substantial rehabilitation
- Manufactured home communities: eligible only via MHC Program (ML 2024-11) for states, local governments, resident-owned communities, cooperatives, nonprofits, CDFIs, Indian Tribes, other Secretary-approved entities; RVs/seasonal use prohibited
- Build-to-rent: BTR (detached SF, duplex, triplex, 5+ units, single contiguous site) eligible for 223(f) only if C of O < 3 years (ML 2026-12)
- cooperatives: Chapter 17 of MAP Guide
The property must contain at least 5 residential units. ... Manufactured home parks and group homes are not eligible under this Section.
- Manufactured home communities
- Section 223(f) refinance or purchase of existing manufactured home communities for eligible (public/nonprofit/resident/coop/CDFI/Tribal) borrowers
This ML launches a program (the Manufactured Home Community Program or MHC Program), to allow refinance and purchase transactions under Section 223(f) for eligible borrowers.
Mortgagee Letter 2024-11: Utilizing Section 223(f) for Manufactured Home Community Program, 2024-06-04 (ML 2024-11) - Build-to-rent
- Build-to-Rent communities: 223(f) acquisition/refinance of recently developed (C of O < 3 years) only
Section 223(f) – Acquisition or refinancing of recently developed (i.e., certificate of occupancy dated less than 3 years prior to application) multifamily rental housing only.
Mortgagee Letter 2026-12: 'Build-To-Rent' Developments Underwriting Eligibility, undated in document (ML 2026-12; PDF metadata created 2026-10-13); effective immediately - Minimum loan
- not published
- Maximum loan
- not published as a dollar cap; lesser of requested amount, statutory per-unit limits, DSCR-supported amount, and loan-ratio amount maximum loan amounts are the lesser of: a) the requested mortgage amount, b) the amount allowed by statutory limits, c) ... debt service coverage ratios Mortgagee Letter 2025-03: Multifamily Changes in DSCR and LTV/LTC, 2025-01-08 (ML 2025-03, effective immediately)
- Max LTV, purchase
-
- Market rate (or LIHTC without a rent advantage): 87%
- Affordable (LIHTC with a rent advantage): 90%
- 90% or more rental assistance: 90%
- Manufactured home community program (ML 2024-11): 90%
Market Rate (or LIHTC w/o Rent Advantage) ... 223(f) Refinance or Acquisition* 85% 87%
Mortgagee Letter 2025-03: Multifamily Changes in DSCR and LTV/LTC, 2025-01-08 (ML 2025-03, effective immediately) - Max LTV, refinance
-
- Market rate (or LIHTC without a rent advantage): 87%
- Affordable (LIHTC with a rent advantage): 90%
- 90% or more rental assistance: 90%
- Manufactured home community program (ML 2024-11): 90%
Affordable Housing (LIHTC w/ Rent Advantage to Market) ... 223(f) Refinance or Acquisition* 87% 90%
Mortgagee Letter 2025-03: Multifamily Changes in DSCR and LTV/LTC, 2025-01-08 (ML 2025-03, effective immediately) - Max LTV, cash-out
-
- Standard: Criterion 10: greater of 80% LTV or the cost to refinance (unchanged by ML 2025-03); 50% of cash out held as debt service reserve for properties under 3 years until DSCR met; 50% escrowed when repairs deferred
- Manufactured home community program (ML 2024-11): cash out not permitted
Criterion 10. For this criterion, the limit is the greater of 80% of LTV or the cost to refinance.
- Max loan-to-cost
- n/a for refinance; acquisition Criterion 7 cost-based limit uses the same tier percentages as Criterion 3 (MAP Guide 85/87/90; ML 2025-03 raised the 223(f) loan ratios to 87/90/90)
Criterion 7 Acquisition Applications. For amount based on total cost of acquisition, per Section 223(f), the following percentages apply
- Min DSCR
-
- Market rate (or LIHTC without a rent advantage): 1.15x
- Affordable (LIHTC with a rent advantage): 1.11x
- 90% or more rental assistance: 1.11x
- Manufactured home community program (ML 2024-11): 1.11x
223(f) Refinance or Acquisition* 85% 87% 1.176 1.15
Mortgagee Letter 2025-03: Multifamily Changes in DSCR and LTV/LTC, 2025-01-08 (ML 2025-03, effective immediately) - Amortization
- lesser of 35 years or 75% of remaining economic life; not less than 10 years; level monthly fully amortizing
The maximum term of the mortgage is 35 years or 75% of the remaining economic life of the property, whichever is less
- Term
- term equals amortization (fully amortizing, level annuity monthly payments); 10-year minimum, 35-year maximum
All HUD insured mortgages must amortize through a level annuity monthly payment plan (LAMP ), with equal monthly payments of principal and interest.
- Rate type
- rate negotiated between borrower and lender and locked by Initial Endorsement; level monthly P&I payments required (MAP does not use the word 'fixed')
The interest rate ... must be locked in by the time of Initial Endorsement.
- Prepayment
- statutory 5-year prepayment prohibition from endorsement (limited exceptions); lender-negotiated terms of Ginnie Mae/bond financing may also restrict; HUD consent may not be a prepayment condition
The National Housing Act prohibits prepayment of loans insured under Section 223(f) for 5 years from the date of endorsement for insurance
- Recourse
- non-recourse to the mortgagor entity, with carve-out personal liability as identified in the Firm Commitment; single-asset borrower required
The HUD mortgage note will contain a non-recourse provision as to the mortgagor entity.
- Assumability
- MAP Guide does not use the term 'assumable'; ownership transfers require HUD prior written approval through the Transfer of Physical Assets (TPA) process
any transfer of an ownership interest ... must have prior written approval by HUD, through the Transfer of Physical Assets (TPA) process
- Closing time
- not published
- Mortgage insurance premium
- Current MIP for all FHA multifamily programs is 25 bps upfront and 25 bps annual (FR 2025-18379); see mip[]
207/223(f) Refi or Purchase for Apts ... 100 25 60 25
Changes in Mortgage Insurance Premiums Applicable to FHA Multifamily Insurance Programs (FR Doc 2025-18379, 90 FR 45789), 2025-09-23 (90 FR 45789); applies to applications submitted or amended on/after 2025-10-01 not yet initially endorsed
HUD / FHA
HUD 221(d)(4): new construction or substantial rehab
FHA Section 221(d)(4) – new construction or substantial rehabilitation of rental housing
Unless a line says otherwise, the terms below come from HUD Handbook 4430.G Multifamily Accelerated Processing (MAP) Guide, Revision March 19, 2021 (the '2020 MAP Guide'), 2021-03-19 (MAP Guide 4430.G 'Revision March 19, 2021'; hud.gov lists it as '2020 MAP Guide (03/24/2021)').
- Eligible properties
-
- General: rental housing with 5+ units, each with full kitchen and bath; group homes ineligible; SRO only with existing project-based Section 8
- Build-to-rent: BTR new construction only (ML 2026-12)
- Middle income: Middle Income Housing option (ML 2026-01)
Properties must have 5 or more residential units with individual full kitchens and baths for each unit.
- Build-to-rent
- Build-to-Rent (detached single-family, duplex, triplex communities, 5+ units on one contiguous site) – new construction only
Section 221(d)(4) – New construction only.
Mortgagee Letter 2026-12: 'Build-To-Rent' Developments Underwriting Eligibility, undated in document (ML 2026-12; PDF metadata created 2026-10-13); effective immediately - Minimum loan
- not published
- Maximum loan
- not published as a dollar cap; lesser of requested amount, statutory limits, DSCR amount, loan-to-cost amount maximum loan amounts are the lesser of: a) the requested mortgage amount, b) the amount allowed by statutory limits Mortgagee Letter 2025-03: Multifamily Changes in DSCR and LTV/LTC, 2025-01-08 (ML 2025-03, effective immediately)
- Max LTV, purchase
- n/a (cost-based program)
Most FHA multifamily new construction and substantial rehabilitation programs are based on cost rather than value when sizing the mortgages
- Max LTV, refinance
- n/a
- Max LTV, cash-out
- n/a
- Max loan-to-cost
-
- Market rate (or LIHTC without a rent advantage): 87%
- Affordable (LIHTC with a rent advantage): 90%
- 90% or more rental assistance: 90%
- Middle income option (ML 2026-01): 90%
- Basis: percentage of HUD-estimated replacement cost (Criterion 3)
221(d)(4) NC/SR 85% 87% 1.176 1.15
Mortgagee Letter 2025-03: Multifamily Changes in DSCR and LTV/LTC, 2025-01-08 (ML 2025-03, effective immediately) - Max LTC, middle income option
- 90%
221(d)(4) NC/SR 87% 90% 1.15 1.11 7%
Mortgagee Letter 2026-01: Creating a Middle Income Housing option for 221(d)(4) (supersedes ML 2025-02), 2026-01-22 (ML 2026-01, supersedes ML 2025-02) - Min DSCR
-
- Market rate (or LIHTC without a rent advantage): 1.15x
- Affordable (LIHTC with a rent advantage): 1.11x
- 90% or more rental assistance: 1.11x
- Middle income option (ML 2026-01): 1.11x
221(d)(4) NC/SR 87% 90% 1.15 1.11
Mortgagee Letter 2025-03: Multifamily Changes in DSCR and LTV/LTC, 2025-01-08 (ML 2025-03, effective immediately) - Amortization
- lesser of 40 years from first principal payment (i.e., after construction) or 75% of remaining economic life
the lesser of 75% of the estimated remaining economic life ... or 40 years from the date of the first payment to principal.
- Term
- construction period (Insurance of Advances or Insurance Upon Completion) followed by fully amortizing permanent term up to 40 years from first principal payment
HUD can insure both the construction and permanent loan periods (Insurance of Advances) or just the permanent loan period (Insurance Upon Completion ).
- Rate type
- rate negotiated and locked by Initial Endorsement; note may carry same or different rates for construction and permanent periods; level monthly P&I
provides for the same or different interest rates for the construction and permanent financing periods.
- Prepayment
- HUD permits but does not impose prepayment restrictions (lender/investor-negotiated)
For other Sections of the Act, HUD permits but does not impose prepayment restrictions on insured loans.
- Recourse
- non-recourse to the mortgagor entity (carve-outs per Firm Commitment)
The HUD mortgage note will contain a non-recourse provision as to the mortgagor entity.
- Assumability
- MAP Guide does not use the term 'assumable'; transfers require HUD TPA approval
must have prior written approval by HUD, through the Transfer of Physical Assets (TPA) process
- Closing time
- not published
- Underwriting vacancy
-
- Market rate: 7%
- Affordable: 5%
- 90% rental assistance: 3%
Vacancy Factor ... 3% ... 5% ... 7%
Mortgagee Letter 2025-03: Multifamily Changes in DSCR and LTV/LTC, 2025-01-08 (ML 2025-03, effective immediately) - Mortgage insurance premium
- Current MIP for all FHA multifamily programs is 25 bps upfront and 25 bps annual (FR 2025-18379); see mip[]
221(d)(4) New Constr/Sub Rehab...... 65 25 65 25
Changes in Mortgage Insurance Premiums Applicable to FHA Multifamily Insurance Programs (FR Doc 2025-18379, 90 FR 45789), 2025-09-23 (90 FR 45789); applies to applications submitted or amended on/after 2025-10-01 not yet initially endorsed
HUD / FHA
HUD 223(a)(7): refinance of an fha-insured loan
FHA Section 223(a)(7) – streamlined refinance of currently FHA-insured multifamily loans
Unless a line says otherwise, the terms below come from HUD Handbook 4430.G Multifamily Accelerated Processing (MAP) Guide, Revision March 19, 2021 (the '2020 MAP Guide'), 2021-03-19 (MAP Guide 4430.G 'Revision March 19, 2021'; hud.gov lists it as '2020 MAP Guide (03/24/2021)').
- Eligible properties
- existing properties in residential use with a currently FHA-insured mortgage (plus HUD-held MAHRA debt restructurings); excludes risk share, co-insured, Section 202/HUD-held loans; no new construction, substantial repairs, ground-disturbing repairs
Section 223(a)(7) refinancing is limited to existing properties in residential use.
- Minimum loan
- not published
- Maximum loan
- lesser of: original principal amount of the mortgage(s) being refinanced (Criterion 2); cost to refinance = existing UPB plus permitted closing costs, repairs, reserves (Criterion 10); DSCR amount (Criterion 5)
limited to the lesser of the original principal balance, the existing indebtedness plus transaction costs, and that which can be supported by 90% of NOI
- Max LTV, purchase
- n/a (refinance only)
- Max LTV, refinance
- no LTV test published; capped by original principal amount and cost to refinance
Criterion 10. Amount based on the cost to refinance the existing insured mortgage and other permitted debt
- Max LTV, cash-out
- not permitted (equity take-out not allowed; extraction truncates surrounding text in MAP 18.2.C)
Equity take - - 223(a)(7).
- Max loan-to-cost
- n/a
- Min DSCR
-
- Over 90% project-based Section 8, and Section 213 co-ops: 1.05x
- All other projects: 1.11x
Projects with >90% of units assisted by Project-Based Section 8, and Cooperative Housing insured under Section 213 1.05 95.0% All other projects 1.11 90.0%
- Amortization
- re-amortize within remaining term or extend up to 12 years beyond maturity of the originally insured mortgage; cannot exceed lesser of 75% of remaining useful life or the max term of the original Section of the Act
may be extended up to 12 years beyond the maturity date of the existing, originally insured mortgage (extension limited by statute).
- Term
- remaining term, or extension up to 12 years (including prior extensions); not less than 10 years per MAP 11.8.1
re-amortized either within the remaining term or with an extension up to 12 years, including any previous extensions granted.
- Rate type
- rate negotiated and locked by Initial Endorsement; level monthly P&I (general MAP rule)
must be locked in by the time of Initial Endorsement.
- Prepayment
- HUD permits but does not impose prepayment restrictions (loan remains insured under original Section; 223(f)-origin loans subject to statutory 5-year rule, which does not prohibit 223(a)(7) refinancing)
The statutorily imposed prepayment restriction is not intended to prohibit refinancing under Section 223(a)(7)
- Recourse
- non-recourse to the mortgagor entity (general MAP rule)
The HUD mortgage note will contain a non-recourse provision as to the mortgagor entity.
- Assumability
- MAP Guide does not use the term 'assumable'; transfers require HUD TPA approval
must have prior written approval by HUD, through the Transfer of Physical Assets (TPA) process
- Closing time
- HUD target: Firm Commitment decision within 30 calendar days of a complete application (no closing time published)
Section 223(a)(7) transactions should be processed expeditiously to reach a Firm Commitment decision within 30 calendar days of receipt of a complete application.
- Mortgage insurance premium
- Current MIP for all FHA multifamily programs is 25 bps upfront and 25 bps annual (FR 2025-18379); see mip[]
223(a)(7) Refi of Apts.............. 50 25 50 25
Changes in Mortgage Insurance Premiums Applicable to FHA Multifamily Insurance Programs (FR Doc 2025-18379, 90 FR 45789), 2025-09-23 (90 FR 45789); applies to applications submitted or amended on/after 2025-10-01 not yet initially endorsed
Not eligible
SBA 7(a) and 504: small business loans
SBA 7(a) Loan Program
Unless a line says otherwise, the terms below come from SBA SOP 50 10 Lender and Development Company Loan Programs (document page; redirects to legacy.sba.gov), 2026-10-01 (SOP 50 10 8.1 with Technical Updates, effective October 1, 2026; replaces SOP 50 10 8 eff. 2025-06-01).
- Eligibility
-
- Verdict: INELIGIBLE: passive residential rental real estate (apartment buildings, mobile home parks/manufactured housing communities) cannot be financed under 7(a)
- Regulation: 13 CFR 120.110(c): passive businesses owned by developers and landlords that do not actively use/occupy the assets are ineligible, except Eligible Passive Companies (120.111)
- SOP text: SOP 50 10 8.1, Section A, Ch. 1, 'Types of Ineligible Businesses' > 'Passive Businesses 13 CFR § 120.110(c)': 'Apartment buildings and mobile home parks are not eligible.'; 'Businesses that are primarily engaged in owning or purchasing real estate and leasing it for any purpose are not eligible.'
- Exceptions: Eligible Passive Company may own real estate only if it leases 100% to an eligible Operating Company that occupies it (13 CFR 120.111; SOP occupancy rules); Hotels, motels, RV parks, marinas, campgrounds eligible if >50% of prior-year revenue from transients staying 30 days or less; Licensed nursing homes/assisted living (or state equivalents) providing healthcare/medical services eligible; unlicensed residential facilities without healthcare not eligible; Residential space essential to the business (resident owner/manager) up to 49% of property
- Occupancy: existing building: borrower (or OC) must occupy at least 51% of Rentable Property; new construction: at least 60% (13 CFR 120.131)
Apartment buildings and mobile home parks are not eligible.
SOP 50 10 8.1 Technical Policy Updates effective 10.1.2026 (.docx), 2026-10-01 (SOP 50 10 8.1 with Technical Updates, effective October 1, 2026; replaces SOP 50 10 8 eff. 2025-06-01) - Regulation
- 13 CFR 120.110(c)
Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds
13 CFR 120.110 What businesses are ineligible for SBA business loans?, eCFR current as of 2026-10-22; 120.110 last amended 89 FR 34101 (2024-04-30) - Real estate leasing
- Businesses primarily owning/purchasing real estate and leasing it are ineligible
Businesses that are primarily engaged in owning or purchasing real estate and leasing it for any purpose are not eligible.
SOP 50 10 8.1 Technical Policy Updates effective 10.1.2026 (.docx), 2026-10-01 (SOP 50 10 8.1 with Technical Updates, effective October 1, 2026; replaces SOP 50 10 8 eff. 2025-06-01)
SBA's loan size, term and fee rules are left out here because they never reach an apartment building.
No published terms
Bank or credit union: portfolio loan
Bank / credit union portfolio multifamily loan
No primary source publishes terms for this loan type. The facts below come from federal regulations, each linked.
- What is published
- No single primary source publishes bank loan terms. Only the federal supervisory LTV ceiling is sourced.
- Eligible properties
- Lender-specific; not published by a primary source
- Federal supervisory LTV ceilings
-
- Improved property, incl. 5+ unit residential: 85%
- Construction: commercial, multifamily: 80%
- Land development: 75%
- Raw land: 65%
- Note: Ceilings for banks' internal policies, not loan terms; exceptions allowed and reported to the board.
These internal limits should not exceed the following supervisory limits
12 CFR part 34 subpart D app. A, Interagency Guidelines for Real Estate Lending Policies (supervisory LTV limits), eCFR current as of 2026-10-22 (Interagency Guidelines for Real Estate Lending Policies, 12 CFR part 34 subpart D app. A; same guidelines in FDIC 12 CFR 365 and FRB 12 CFR 208) - Consumer law
- Business-purpose credit and credit to non-natural persons are exempt from Regulation Z (TILA), so consumer-mortgage disclosure/ability-to-repay rules do not apply.
An extension of credit primarily for a business, commercial or agricultural purpose.
12 CFR 1026.3 Exempt transactions (Regulation Z business-purpose exemption), eCFR current as of 2026-10-22
Not published by any primary source: minimum loan, maximum loan, max ltv, purchase, max ltv, refinance, max ltv, cash-out, min dscr, amortization, term, rate type, prepayment, recourse, assumability, closing time.
No published terms
CMBS conduit: securitized loan
CMBS conduit loan
No primary source publishes terms for this loan type. The facts below come from federal regulations, each linked.
- What is published
- No primary source publishes conduit loan terms. Structural features below are sourced from SEC/agency regulation.
- Eligible properties
- Lender-specific; not published by a primary source
- Securitization
- Loans are pooled in a securitization; the sponsor must retain at least 5% credit risk (vertical, horizontal or combination), and for CMBS a third-party purchaser (B-piece buyer) may hold the horizontal interest.
the sponsor must retain an eligible vertical interest in a percentage of not less than 5 percent
17 CFR 246.4 Standard risk retention (Regulation RR), eCFR current as of 2026-10-22 (Credit Risk Retention, 17 CFR 246.4 and 246.7) - Servicing
- Servicing is governed by the transaction's servicing agreement, with master/primary servicers and a special servicer that takes over loans when specified conditions occur; CMBS risk-retention via a B-piece requires an independent Operating Advisor. The regulation's term is 'servicing agreement'; the label 'pooling and servicing agreement (PSA)' is not used in the cited text.
any servicer that, upon the occurrence of one or more specified conditions in the servicing agreement, has the right to service one or more assets
17 CFR 246.7 Commercial mortgage-backed securities (risk retention, special servicer, Operating Advisor), eCFR current as of 2026-10-22 - Disclosure
- Public CMBS must disclose the servicing structure (master, primary, special servicers) under Regulation AB Item 1108.
master servicers that oversee the actions of other servicers, primary servicers ... or special servicers
17 CFR 229.1108 (Regulation AB Item 1108) Servicers, eCFR current as of 2026-10-22 - Consumer law
- Business-purpose credit and credit to non-natural persons are exempt from Regulation Z (TILA), so consumer-mortgage disclosure/ability-to-repay rules do not apply.
An extension of credit primarily for a business, commercial or agricultural purpose.
12 CFR 1026.3 Exempt transactions (Regulation Z business-purpose exemption), eCFR current as of 2026-10-22
Not published by any primary source: minimum loan, maximum loan, max ltv, purchase, max ltv, refinance, max ltv, cash-out, min dscr, amortization, term, rate type, prepayment, recourse, assumability, closing time.
No published terms
Bridge loan: short-term, transitional
Bridge loan (short-term, transitional multifamily)
No primary source publishes terms for this loan type. The facts below come from federal regulations, each linked.
- What is published
- No primary source publishes bridge loan terms; no structural feature specific to bridge loans was found in a primary source.
- Eligible properties
- Lender-specific; not published by a primary source
- Consumer law
- Business-purpose credit and credit to non-natural persons are exempt from Regulation Z (TILA), so consumer-mortgage disclosure/ability-to-repay rules do not apply.
An extension of credit primarily for a business, commercial or agricultural purpose.
12 CFR 1026.3 Exempt transactions (Regulation Z business-purpose exemption), eCFR current as of 2026-10-22
Not published by any primary source: minimum loan, maximum loan, max ltv, purchase, max ltv, refinance, max ltv, cash-out, min dscr, amortization, term, rate type, prepayment, recourse, assumability, closing time.
No published terms
DSCR investor loan: non-qm business-purpose
DSCR investor loan (non-QM business-purpose loan, typically 1-4 units and small multifamily)
No primary source publishes terms for this loan type. The facts below come from federal regulations, each linked.
- What is published
- No primary source publishes DSCR loan terms. The only sourced structural fact is the Regulation Z business-purpose exemption.
- Eligible properties
- Lender-specific; not published by a primary source
- Consumer law
- Business-purpose credit and credit to non-natural persons are exempt from Regulation Z (TILA), so consumer-mortgage disclosure/ability-to-repay rules do not apply.
An extension of credit primarily for a business, commercial or agricultural purpose.
12 CFR 1026.3 Exempt transactions (Regulation Z business-purpose exemption), eCFR current as of 2026-10-22
Not published by any primary source: minimum loan, maximum loan, max ltv, purchase, max ltv, refinance, max ltv, cash-out, min dscr, amortization, term, rate type, prepayment, recourse, assumability, closing time.