Agency Multifamily Loan Rates 2026 (Fannie Mae DUS & Freddie Mac Optigo)
What Stabilized Multifamily Is Pricing At
Agency multifamily loan rates in May 2026 range from 5.50% to 6.50% for a standard 10-year fixed conventional execution, priced as the 10-year Treasury yield plus a spread that reflects market tier, DSCR, and loan size. Fannie Mae DUS and Freddie Mac Optigo remain the lowest all-in cost permanent execution available for stabilized multifamily, with non-recourse structure, 30-year amortization, and optional interest-only periods unavailable in most bank or debt fund products. Small Balance programs (DUS Small Loans and Optigo SBL) serve the $1M to $9M range with expedited underwriting and competitive pricing on the same Treasury-based pricing grid.
Current Rate Table
Rates shown are indicative ranges based on current market conditions. Your actual rate will depend on your specific property, leverage, and borrower profile. Contact Commercial Lending Solutions for a precise quote.
| Leverage Tier | Rate Range | Notes |
|---|---|---|
| Tier 1 (Top Markets, DSCR 1.35x or above, 65% LTV or below) | 5.50% to 5.85% | Best execution, major MSAs, strong cash flow, partial or full IO often available |
| Tier 2 (Primary Markets, DSCR 1.25x to 1.35x, LTV 65% to 70%) | 5.85% to 6.15% | Most common execution for well-located stabilized assets |
| Tier 3 (Secondary Markets or DSCR 1.20x to 1.25x, LTV 70% to 75%) | 6.15% to 6.40% | Secondary market assets or moderate leverage with acceptable debt coverage |
| Tier 4 (Tertiary Markets or Higher Leverage up to 80% LTV) | 6.40% to 6.50% | Maximum agency leverage, limited IO availability, smaller loan amounts relative to NOI |
| Small Balance (DUS Small Loans or Optigo SBL, $1M to $9M) | 5.65% to 6.50% | Streamlined underwriting, faster close, pricing follows same Treasury-plus-spread grid |
Rates are illustrative ranges as of May 2026 and subject to change. All loan programs subject to underwriting approval. Not a commitment to lend.
What Drives Agency Multifamily Loan Rates
Understanding these factors helps you position your deal for the best available rate.
10-Year Treasury Benchmark
Agency multifamily spreads are priced over the 10-year Treasury, which means the all-in rate moves with long-end rates, not Fed Funds or SOFR. A 25 basis point move in the 10-year Treasury translates directly into a 25 basis point move in the note rate at rate lock. Borrowers who float-lock early in the application process carry rate risk during the 45 to 90 day underwriting window.
Tier Classification (Market and Property Quality)
Fannie Mae and Freddie Mac assign loans a Tier from 1 to 4 based on market depth, property quality, occupancy history, and DSCR. Tier 1 receives the tightest lender spread over Treasury, often 140 to 165 basis points. Tier 4 spreads can run 185 to 215 basis points. Moving from Tier 2 to Tier 1 by improving NOI or reducing loan size can save 20 to 30 basis points on the note rate.
Debt Service Coverage Ratio
DSCR is the primary underwriting threshold that determines maximum loan proceeds and tier eligibility. Conventional agency programs require a minimum 1.20x to 1.25x DSCR depending on market tier, with the best pricing reserved for deals underwriting at 1.35x or above. Each incremental 0.05x improvement in DSCR can unlock a better tier classification and reduce the note rate.
Loan-to-Value Ratio
Agency programs allow up to 80% LTV for conventional multifamily, but lenders price incrementally wider spreads above 70% LTV as they hold greater loss-given-default risk under the DUS risk-sharing model. Dropping from 75% to 65% LTV can tighten the spread by 15 to 30 basis points in addition to unlocking better tier eligibility.
Interest-Only Period Length
Full-term IO carries a spread premium of roughly 15 to 25 basis points over a fully amortizing loan at the same LTV and DSCR. Partial IO (2 to 5 years of IO on a 10-year term) carries a smaller premium of 5 to 15 basis points. IO availability is constrained by DSCR tests run on both the IO payment and the fully amortizing payment, so not every deal qualifies.
Loan Size and Small Balance Programs
Loans below $9M route through the DUS Small Loans or Optigo SBL programs, which use standardized underwriting templates and third-party report requirements that differ from standard DUS. Pricing is competitive with the standard grid, but the spread premium for small balance is typically 10 to 20 basis points relative to a comparable standard loan. Close timelines compress to 30 to 45 days versus 60 to 90 days for standard deals.
Prepayment Structure
Agency loans are quoted with either yield maintenance or step-down prepayment (e.g., 5-4-3-2-1 on a 10-year term). Yield maintenance protects the lender's spread from early payoff and is the standard structure. Step-down prepayment, which reduces the penalty over time, carries a modest spread premium of 5 to 15 basis points because it shortens the lender's effective duration. The prepayment choice has no effect on qualifying metrics but materially affects exit flexibility.
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How Agency Multifamily Loan Compare to Alternatives
Choosing the right loan structure can mean a 100 to 300 basis point difference in your cost of capital. Here is how current rates compare across loan types.
| Loan Type | Current Rate Range | When to Use vs Agency Multifamily Loan |
|---|---|---|
| Bank Permanent Loans | 5.75% to 7.50% | Bank loans offer recourse or partial recourse structures and may close faster for smaller loans, but they lack the non-recourse protection, 30-year amortization depth, and IO availability of agency execution. Agency wins on cost and terms for any stabilized deal above $1M where non-recourse matters to the sponsor. |
| Life Company Loans | 5.25% to 6.25% | Life companies can price inside agency on trophy-quality multifamily in primary markets at 50% to 55% LTV, often at comparable or tighter spreads over Treasury. However, life company programs cap LTV well below agency maximums, have limited appetite outside core markets, and offer far fewer loans per year. Agency is the default choice for anything above 60% LTV or in a secondary market. |
| CMBS Conduit Loans | 6.00% to 7.25% | CMBS executes across more property types than agency but prices wider for multifamily because agency programs carry an implicit government backstop that compresses spreads. CMBS offers more flexibility on unusual collateral (student housing, manufactured housing, mixed-use) but lacks the IO availability, non-recourse consistency, and execution speed of agency for standard garden or mid-rise apartments. |
| Bridge Loans | 7.50% to 11.50% | Bridge loans are floating-rate, short-term, and sized to current or near-current value for properties that do not yet meet agency occupancy or DSCR thresholds. The typical business plan is to stabilize the asset and then refinance into an agency permanent loan, which is where this rate table becomes relevant. Agency is the target exit, not the entry point, for value-add deals. |
| HUD or FHA Multifamily Loans (221(d)(4) and 223(f)) | 5.00% to 5.75% | HUD loans price inside agency on a fully amortizing 35-year or 40-year basis and are fully non-recourse, but they require 6 to 18 months to close depending on processing queue and deal complexity. Agency is the preferred execution when speed and certainty of close matter. HUD is used when the lowest possible rate and longest amortization period are the primary objectives and timeline is flexible. |
Agency Multifamily Loan Rates 2026 (Fannie Mae DUS & Freddie Mac Optigo): Frequently Asked Questions
What are current Fannie Mae and Freddie Mac multifamily loan rates?
Agency multifamily loan rates in May 2026 range from 5.50% to 6.50% for a 10-year fixed conventional execution. Rates are priced as the 10-year Treasury yield plus a spread of roughly 140 to 215 basis points depending on Tier classification, DSCR, LTV, and loan size. Tier 1 deals in major markets with strong debt coverage price at the tight end of that range.
How is the Tier system used in agency multifamily pricing?
Agency lenders assign a Tier from 1 to 4 based on market depth, property quality, DSCR, and LTV. Tier 1 reflects the strongest combination of those factors and receives the lowest spread over the 10-year Treasury. Tier 4 applies to tertiary markets, higher leverage, or thinner debt coverage and carries a spread premium of 40 to 50 basis points over Tier 1. The Tier determines both rate and maximum proceeds.
What is the minimum loan size for an agency multifamily loan?
Fannie Mae DUS and Freddie Mac Optigo standard programs generally start at $1M to $3M depending on the lender. Below $9M, loans route through the Small Balance programs (DUS Small Loans and Optigo SBL), which use streamlined underwriting, fewer third-party reports, and faster timelines of 30 to 45 days. Both programs price on the same Treasury-plus-spread grid as standard agency loans.
Can I get interest only on an agency multifamily loan?
Yes. Agency programs allow partial or full-term interest-only periods on qualifying deals. Full-term IO on a 10-year loan carries a spread premium of 15 to 25 basis points and requires the deal to pass DSCR tests on both the IO payment and the hypothetical fully amortizing payment. Partial IO of 2 to 5 years carries a smaller premium and is available to a wider range of deals.
Are agency multifamily loans non-recourse?
Yes. Fannie Mae DUS and Freddie Mac Optigo loans are non-recourse to the borrower, with standard carve-outs for bad acts such as fraud, misrepresentation, and environmental liability. This is one of the primary advantages of agency execution over bank or credit union permanent loans, which typically require full or partial recourse regardless of loan quality.
How long does it take to close an agency multifamily loan?
Standard agency multifamily loans close in 60 to 90 days from application, driven by third-party report timelines (appraisal, environmental, property condition) and agency underwriting review. Small Balance program loans (below $9M) can close in 30 to 45 days due to abbreviated report requirements. Rate lock is typically available at application or commitment, which determines when Treasury-based rate exposure begins.
What prepayment options are available on agency multifamily loans?
Agency multifamily loans are typically structured with either yield maintenance or step-down prepayment. Yield maintenance calculates a penalty based on the present value of remaining cash flows at a Treasury benchmark, and it applies for most of the loan term. Step-down prepayment reduces the penalty annually, for example 5-4-3-2-1 on a 10-year loan, and carries a modest spread premium of 5 to 15 basis points for the additional exit flexibility.
Trevor Damyan is a commercial mortgage broker with $1B+ in loans closed and direct relationships with life insurance companies, CMBS desks, debt funds, and non-QM lenders. Rate data is compiled from active lender conversations and closed transaction experience.
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