Five Advantages of FHA Multifamily Construction Loans

In the last three years, multifamily construction has reached levels not seen since the 1980s, supported, in part, by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) loans. If you are exploring the acquisition, refinancing, rehabilitation, or new construction of conventional multifamily, affordable housing, seniors housing, or a healthcare facility, consider FHA multifamily construction loans, a stable financing option with excellent terms and many other attractive advantages.


Where are Single-Family Rental (SFR) Rents Rising the Fastest?

While the single-family rental (SFR) sector’s rent growth averages have retreated from record highs, structural tailwinds are keeping price growth positive — both nationally and in major SFR markets. In this research brief, Chandan Economics and Arbor Realty Trust analyze DBRS Morningstar data, which covers the top 20 MSAs by SFR activity, to discover the metropolitan areas where SFR rent growth is the hottest right now.


Fannie Mae Small Loans Cap Raised to $9 Million

Fannie Mae recently announced that its Small Loan cap has increased from $6 million to $9 million for all loans committed as of August 22, 2023. Multifamily borrowers and lenders have praised the change to the Fannie Mae Small Loans program, which will encourage greater investment in a rapidly growing sector where demand remains high despite market volatility.


The Top Five Emerging Metros for Retiree Relocation

As Baby Boomers reach retirement age, their evolving geographic preferences are strengthening housing markets and local economies in new locations, which feature attractive climates, relative affordability, and ample outdoor activities. With swelling populations of senior citizens, our top five emerging metropolitan areas for retiree relocation are fertile ground for multifamily real estate investment.

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Green Advantage®

The Freddie Mac Green Advantage® suite of offerings includes Green Up®, Green Up Plus®, Green Retrofits, Green Certified or Green Rebate. These financing programs reward borrowers who improve their properties to reduce their energy and/or water usage by 30% or those who already have green-certified properties and are looking for new financing. Green Advantage works with Freddie Mac Conventional and Targeted Affordable Housing (TAH) cash preservation products.

Green Assessment®

  • Straightforward property analysis to show borrowers how they can save energy and/or water by making property improvements
  • Reimbursements of up to $4,000 of the cost of the report when the borrower closes a Freddie Mac loan
Eligible Loans
  • Conventional and TAH cash preservation (excludes SBL, Seniors, MHCs and supplementals)
  • 7- or 10-year fixed- or floating-rate Freddie Mac Multifamily Optigo® loans

Green Assessment Plus®

  • Highly detailed property analysis based on an ASHRAE Level 2 energy audit
  • Reimbursements of up to $4,000 of the cost of the report when the borrower closes a Freddie Mac loan
Eligible Loans
  • Conventional and TAH cash preservation (excludes SBL, Seniors, MHCs and supplementals)
  • 7- or 10-year fixed- or floating-rate Freddie Mac Multifamily Optigo® loans

Green Up® and Green Up Plus®

Minimum Projected Consumption Reduction 30% of energy or water/sewer consumption for Consumption Reduction the whole property, with a minimum of 15% from energy based on Green Assessment.
Benchmarking Data Collection Require borrowers to engage a third-party data collection consultant prior to the origination of the loan to collect, input and monitor actual energy and water usage through the term of the loan.
Required Third-Party Reports
  • Green Up loans:
    Green Assessment
  • Green Up Plus loans:
    Green Assessment Plus

Green Retrofit

This feature is for deeply affordable properties with energy- and/or water-efficiency improvements already made within the current calendar year or the preceding previous two calendar years from when the borrower completes
Form 1209: Green Retrofits Certification.
Eligible Loans Conventional and TAH cash preservation (excludes SBL, Seniors, Student MHCs and supplementals)
Terms 10-year fixed
Requirements Affordability Test required — eligible properties need to have at least 20% of units affordable at 60% AMI
DCR/LTV Must meet policy compliant DCR/LTV; no adjustment
Time to Complete Green Improvements Two years
Escrow Requirements Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed.

Green Certified

Eligible Loans Discounted loan pricing for 10-year fixed-rate loans if at least 40% of the property’s units are affordable at workforce housing levels.

They must have an industry-standard green building certification:

  • EarthCraft, Southface
  • ENERGY STAR® for Multifamily Existing Building, High Rise, New Construction, EPA
  • Green Communities, Enterprise Community Partners
  • Green Globes, Green Building Initiative
  • GreenPoint Rated, Build It Green
  • Leadership in Energy and Environmental Design (LEED), US Green Building Council
  • National Green Building Standard (NGBS), Home Innovation Research Labs
  • Passive House Institute US (PHIUS) Certified
  • Passive House Institute (PHI) Certified

Green Rebate

If your borrower does not choose any of the above Green Advantage® options, a $5,000 rebate may be available for a borrower reporting an EPA ENERGY STAR® score.

Commercial Property Assessed Clean Energy (C-PACE) Financing Consent

  • Can grant consent for Commercial PACE financing from qualifying Commercial PACE programs on loans in Freddie Mac’s retained portfolio.
  • Additional requirements may apply.


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