FHFA Sets 2026 Freddie, Fannie Multifamily Caps at $88B Each
The targets are up from $73 billion this year.
The U.S. Federal Housing Finance Agency has set Freddie Mac Multifamily’s loan purchase cap for the next year at $88 billion. The institution sets it based on projections for the size of the debt origination market.
The Federal Housing announced Fannie Mae will have the same purchase volume cap. In 2025, this figure was $73 billion—or a combined $146 billion—now growing more than 20 percent for the following year.
To maintain liquidity in the multifamily mortgage market, the FHFA will keep monitoring activity and raise lending caps if needed. However, to avoid market disruption, the agency said it won’t lower them even if the market ends up smaller than projected.
READ ALSO: GSE Privatization: Mission Possible?
Stable market conditions, strong loan maturities and easing interest rates are expected to boost multifamily lending next year, Mortgage Bankers Association President & CEO Bob Broeksmit said in prepared remarks. The newly announced cap levels aim to keep the GSEs a steady and dependable financing source for rental housing, he added.
Earlier this year, FHFA doubled the amount Fannie Mae and Freddie Mac can invest in LIHTC projects annually from $1 billion to $2 billion each. Half of the GSE purchases will be reserved for difficult-to-serve LIHTC markets and at least 20 percent of that half will be for Duty to Serve Rural Communities.
Mission-driven loans for income-restricted projects
For 2026, FHFA requires that 50 percent of multifamily purchases be mission-driven—the same share as 2025. A loan receives 50 percent mission-driven credit if less than half of the property’s units are income-restricted, and 100 percent credit if at least half of units are affordable.
Loans on properties subsidized by LIHTC are also considered mission-driven. Additionally, notes that would preserve affordability at workforce housing communities may be excluded from FHFA’s volume caps and classify as mission-driven if they include rent or income restrictions in their agreements. The FHFA will exempt the full loan amount when sponsors commit to maintaining affordability for at least 10 years or the loan term.
Is GSE privatization still happening?
After nearly two decades in conservatorship, Fannie Mae and Freddie Mac could move toward privatization under a proposal from HUD Secretary Scott Turner and the Trump administration. The plan would release the GSEs from government control, while maintaining housing market stability.
Broeksmit urged caution, warning that a rushed transition could raise mortgage rates and undermine investor confidence. He emphasized the need for an explicit government guarantee on mortgage-backed securities to ensure liquidity across economic cycles. Other experts predict that any privatization effort would likely unfold gradually, involving phased regulatory changes and partial reintroduction of private investors into the GSEs.
