The 2025 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $73 billion each for a combined $146 billion to support the multifamily market, announced the Federal Housing Finance Agency (FHFA). The caps are up from the combined $140 billion for 2024.
FHFA will continue to require that at least 50% of the government-sponsored enterprises’ (GSEs’) multifamily businesses be mission-driven, affordable housing. In addition, just like 2024, multifamily loans that finance workforce housing will be excluded from the volume caps. According to FHFA, since workforce housing was first exempted from the caps a year ago, both GSEs have seen encouraging growth in this market segment.
“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.”
FHFA also noted that it will monitor market conditions and may update the multifamily caps if warranted. If the 2025 market is smaller than projected, the caps will not be reduced.
Freddie Mac Multifamily head Kevin Palmer said the GSE will continue to adapt to market conditions and meet its mission to provide liquidity, stability, and affordability throughout all market cycles. “FHFA’s requirements create the conditions for us to deliver on our priorities,” he said. “In 2025, we will continue our day-to-day focus on supporting affordable rental housing for families across the country.”
Mortgage Bankers Association (MBA) president and CEO Bob Broeksmit noted the 4% increase in the multifamily loan purchase caps 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,” he said. “We are also supportive of the continued cap exemptions for loans that support workforce housing and appreciate that FHFA will remain flexible should adjustments to the caps and mission-driven requirements be necessary.”
Broeksmit added, “MBA supports a level playing field across all multifamily capital sources and strongly believes that rental housing affordability and availability should be a top priority for industry practitioners, policymakers, and regulators in 2025. We will work with the Trump administration and Congress on policies and initiatives that boost rental housing supply and improve affordability.”
