Multifamily debt programs we place
VS Capital Group's multifamily practice covers the full lifecycle of an apartment investment.
- Fannie Mae and Freddie Mac agency loans for stabilized multifamily, DUS, Small Balance, Green, Affordable, and Manufactured Housing
- HUD / FHA 223(f) acquisition and refinance, 221(d)(4) construction, and 232 healthcare executions
- Bank and credit union balance-sheet debt for sponsors needing flexibility, full prepayment optionality, or relationship pricing
- Life company permanent debt for low-leverage, long-duration multifamily holds
- CMBS conduit debt for stabilized multifamily at maximum proceeds
- Debt fund and private credit bridge loans for value-add, lease-up, and transitional multifamily
- Construction loans for ground-up multifamily and build-to-rent communities
Agency multifamily financing
Fannie Mae and Freddie Mac remain the most competitive permanent debt source for stabilized multifamily in most markets. Agency executions offer up to 80% LTV, 30-year amortization, interest-only options, non-recourse standard, and assumability, economics no other lender can match for stabilized apartments.
VS Capital Group works with the top-ranked agency lenders nationwide and runs a competitive quote process on every agency execution. The result is meaningfully better spreads, more interest-only, and better structure than a sponsor would obtain from a single agency lender.
Bridge and value-add multifamily
Multifamily value-add, interior renovations, common-area upgrades, operational repositioning, and management changes, typically requires a bridge loan that finances both the acquisition and the renovation reserve. We place bridge debt with debt funds, balance-sheet banks, life companies, and credit funds that compete aggressively in the value-add space.
Multifamily construction debt
Ground-up multifamily and build-to-rent development require construction loans sized to a developable cost basis with a stabilized debt yield the lender can underwrite to. We structure construction loans with bank, debt-fund, and HUD senior lenders, and layer mezzanine debt or preferred equity when the project requires more than the senior will provide.
Frequently asked questions
- What is the maximum leverage on a multifamily agency loan?
- Fannie Mae and Freddie Mac agency loans typically allow up to 80 percent loan-to-value on a stabilized acquisition or refinance, subject to a minimum debt service coverage ratio (typically 1.25x) and a minimum debt yield. Affordable and mission-driven executions allow higher leverage.
- Are agency multifamily loans non-recourse?
- Yes. Fannie Mae and Freddie Mac multifamily loans are non-recourse with standard bad-boy carve-outs for fraud, intentional misrepresentation, voluntary bankruptcy, and similar trigger events.
- What is a DUS loan?
- DUS stands for Delegated Underwriting and Servicing, Fannie Mae's flagship multifamily lending platform. DUS loans are originated, underwritten, and serviced by approved DUS lenders, who share loss risk with Fannie Mae. DUS is the most common Fannie Mae multifamily product.
- Can I get a cash-out refinance on a multifamily property?
- Yes. Both agency lenders, life companies, banks, and CMBS will allow cash-out refinancing on stabilized multifamily, subject to loan-to-value and debt service coverage tests at the new loan balance. Cash-out proceeds are commonly used to recapitalize equity partners, fund new acquisitions, or redeploy into the next project.
- What is the difference between Fannie Mae and Freddie Mac multifamily loans?
- Both agencies offer comparable fixed-rate multifamily debt, but pricing, structure, and underwriting nuance differ by execution. Freddie Mac is often more competitive in primary markets and on larger loans; Fannie Mae is often more competitive on smaller-balance loans, in tertiary markets, and on Manufactured Housing Communities. VS Capital Group quotes both agencies on every eligible transaction.