Written by: Internal Analysis & Opinion Writers
The Federal Housing Finance Agency (FHFA) has announced that the loan‑purchase cap for multifamily mortgages for each of its regulated entities — Fannie Mae and Freddie Mac — will be $88 billion in 2026, marking a combined cap of $176 billion for both enterprises.
This represents a significant increase from 2025, when the cap for each entity was set at $73 billion (combined $146 billion). The increase is more than 20 percent year‑over‑year.
As part of the announcement, the FHFA reaffirmed that at least 50 percent of each enterprise’s multifamily lending must be mission‑driven — supporting affordable housing or underserved markets. Loans financing workforce housing will continue to be exempt from the cap, as in prior years.
Industry reaction has been largely positive. The Mortgage Bankers Association (MBA) praised the move, noting that the increase “aligns with expectations” for the multifamily market in 2026 and helps ensure that the GSEs remain reliable sources of financing for rental housing.
For developers, investors, and lenders in the multifamily space, the raised caps signal a stronger commitment from the GSEs to support apartment financing — particularly in a market grappling with affordability pressures and elevated borrowing costs. The higher cap may improve liquidity and expand opportunities for properties targeting affordable or mixed‑income tenants.
However, the noted requirement that half the business be mission‑driven means that originators and borrowers aiming for conventional multifamily deals must still navigate careful underwriting and documentation for affordable housing objectives.
In sum, the FHFA’s move to lift the 2026 multifamily caps for Fannie Mae and Freddie Mac marks a meaningful policy shift — one that underscores the agency’s intent to bolster rental‑housing finance at scale while keeping affordability in focus.
