If you are thinking about taking out a multifamily loan, now might be the right time.
In October, the Federal Housing Finance Agency (FHFA) announced that the multifamily loan purchase caps for both Fannie Mae and Freddie Mac loans will rise to 78 billion dollars, in 2022. This is an increase of $8 billion for each type of loan, from the previous $70 billion purchase caps that were set for 2021. The total purchase cap of 156 billion dollars will be used to support the growing demand for multifamily apartments.
The Mission to Provide More Affordable Housing
Of the $156 billion purchase cap, at least 50% of the money must go towards affordable housing and underserved markets. This reinforces FHFA’s mission to serve the affordable housing sectors. FHFA will also require at least 25% of the available money to go towards affordable housing for residents at or below 60% of the area median income, which is an increase from the previously required 20%.
As stated by FHFA Acting Director Sandra L. Thompson in a recent news release, the updated cap structure will “assure that the Enterprises’ multifamily businesses have a strong and growing commitment to affordable housing finance, particularly for residents and communities that are the most difficult to serve.”
The FHFA has also revised requirements to support housing in cost-burdened markets, and to enable financing for energy and water efficiency improvement projects.
Are the Caps Likely to Change Again, Due to COVID-19?
Even if demand is less than expected, the FHFA does not intend to reduce the caps for 2022. However, if greater need is seen due to COVID-19, requirements and caps may change again.
Learn more about the new loan caps, the mission to provide more affordable housing, and the background behind the decisions made via the FHFA’s 2022 Multifamily Caps Fact Sheet and 2022 Appendix A.
Find the Right Multifamily Loan with LSG Lending
With a combined 22 years in the residential and commercial lending business, LSG Lending specializes in the analysis, underwriting, and origination of all HUD, FHA, and MAP loans and is here to help you determine which mortgage is right for you.
For questions on multifamily loans or to schedule a consultation, contact us today.