What Are the Requirements To Get Approved For a Fannie Mae of Federal Agency Multifamily Loan?

Fannie Mae, Freddie Mac and HUD are government-sponsored enterprises (GSEs) that provide funding for mortgages for single-family and multifamily properties. They both have multifamily loan programs that provide financing for the purchase, refinance or rehabilitation of multifamily properties.

A family photo in a home representing the benefits of the Fannie Mae multifamily loan

Here are some of the general requirements for getting approved for a Fannie Mae, Freddie Mac or HUD multifamily loan:

1. Property Eligibility 

The property must be a conventional multifamily property with five or more units, such as an apartment building, co-op, or planned-unit development. The property must also be located in the United States and be in compliance with local building codes and zoning regulations.

2. Owner-Occupancy

The borrower must occupy at least one of the units in the property and intend to live there for at least one year after closing. This requirement may vary depending on the type of loan and the loan program.

3, Income and Creditworthiness

 The borrower must have a good credit score and demonstrate the ability to repay the loan. This may include providing proof of income, such as tax returns and bank statements, and showing that the borrower has a debt-to-income ratio that meets the lender’s requirements.

4. Property Condition

The property must be in good condition and meet the lender’s minimum property requirements. This may include an inspection and appraisal of the property to assess its condition and value.

5. Down Payment

A down payment is typically required, the amount varies depending on the type of loan and the loan program. It can vary from 5% to 35% of the total cost of the project.

6. Insurance:

The borrower must also have insurance coverage for the property, which may include hazard insurance and liability insurance.

7. Business plan

The borrower will also have to provide a business plan explaining the purpose of the loan, the use of the loan proceeds, and the market research that supports the business plan.

8. Experience

The borrower is expected to have experience in the real estate industry, owning, managing, and leasing multi-family properties.

9. Rent Roll and Lease Agreements

The borrower will have to provide a rent roll, which is a list of current tenants, and lease agreements for each unit in the building, for the lender to review and check the occupancy of the property.

10. Environmental Reports: 

The borrower will also have to provide environmental reports for the property, such as phase I environmental site assessment (ESA) if needed to ensure that the property does not have any environmental hazards.

Keep in mind that this list is general, and requirements vary from lender to lender, and from program to program. Also, Fannie Mae and Freddie Mac have specific multifamily loan programs with different terms, conditions, and requirements; therefore, it is recommended to check their guidelines and consult with a specialist in their products to have a clear understanding of the process and the options available.


In conclusion, getting approved for a Fannie Mae or Freddie Mac multifamily loan requires meeting certain eligibility requirements, including property and borrower qualifications, property condition, and insurance coverage. It also requires providing a business plan, rent roll, lease agreements, and environmental reports, demonstrating creditworthiness and income, and having experience in the real estate industry. Consultation with a specialist in their products can help guide you through the process and increase your chances of getting approved.