Fannie Mae and Freddie Mac do not lend to borrowers: every agency multifamily loan is originated, and usually serviced, by a private lender in one of two approved networks — Fannie Mae's DUS program or Freddie Mac's Optigo network. To see agency and non-agency executions side by side, submit your multifamily deal once.
Understanding how those networks work — who is in them, how the risk is shared, and why quotes still vary between approved lenders — is the difference between taking the first agency quote you receive and running a real process.
What is a Fannie Mae DUS lender?
A Fannie Mae DUS lender is a private lender approved under Fannie Mae's Delegated Underwriting and Servicing program to underwrite, close, and deliver multifamily loans on Fannie Mae's behalf and then service them for life, while typically retaining one-third of the risk on each loan. Borrowers reach Fannie Mae multifamily capital only through these lenders.
Fannie Mae describes the DUS model as built on delegation, risk-sharing, and life-of-loan servicing: the lender makes the underwriting decision, absorbs part of any loss, and stays the borrower's servicer from closing to payoff.
What is an agency multifamily loan?
An agency multifamily loan is a mortgage on an apartment property of five or more units that Fannie Mae or Freddie Mac funds or purchases through their approved lender networks, prized for high leverage, long terms, competitive fixed rates, and non-recourse structure with standard carve-outs.
Because the agencies exist to support housing liquidity, this capital is multifamily-only: it does not finance office, retail, industrial, or hotels. For a comparison of agency debt against the rest of the multifamily menu, see our guide to multifamily CRE loans in 2026.
Who are the approved lenders for agency multifamily loans?
Approved lenders for agency multifamily loans are the members of two networks: Fannie Mae's DUS (Delegated Underwriting and Servicing) lenders — a small group of roughly two dozen firms — and Freddie Mac's Optigo network of approved seller/servicers. Only these firms can originate agency loans, so borrowers access Fannie and Freddie exclusively through them, never directly.
The rosters are dominated by large commercial mortgage banks — firms like Walker & Dunlop and Berkadia hold seats in both networks — alongside agency-focused platforms at major banks and insurance-affiliated lenders. Membership is hard to win and actively policed: approved lenders must meet capital, underwriting, and servicing standards, and the agencies review their books. For a borrower, that gatekeeping is mostly good news — any approved lender can deliver the same core programs — but it also means the market can feel opaque if you do not already have a relationship.
How does the Fannie Mae DUS model work?
Under the DUS model, Fannie Mae delegates underwriting and servicing to its approved lenders — the lender underwrites the loan, closes it with its own capital, sells it to Fannie Mae, and keeps servicing it, while retaining a meaningful share of the credit risk on every loan through a loss-sharing arrangement.
How does DUS loss sharing work, and what does the lender actually risk?
DUS loss sharing means the approved lender, not only Fannie Mae, absorbs part of the loss if a loan it underwrote defaults — Fannie Mae states that its DUS lenders typically retain one-third of the risk on every loan, with each lender's exact share set by its own loss-sharing agreement with Fannie Mae.
That retained risk is why delegation buys the borrower speed. Because a DUS lender loses real money on a bad loan, most standard DUS loans need no prior approval from Fannie Mae — which Fannie Mae says enables faster decisions, quicker closings, and certainty of execution. The lender's commitment is the credit decision, within the published parameters of the Fannie Mae Multifamily Guide.
How does Freddie Mac Optigo work?
Freddie Mac's Optigo network operates on a prior-approval model: an approved Optigo seller/servicer sources and packages the loan, but Freddie Mac underwrites the credit itself and commits to purchase the loan, which it then typically securitizes through its K-deal program, selling most of the risk to bond investors.
The practical differences from DUS are subtle but real. Freddie's centralized underwriting means the field lender has somewhat less delegated authority, and quotes can involve more back-and-forth with Freddie's regional credit teams. Freddie is also known for program breadth — including its Small Balance Loan (SBL) program for loans of roughly $1 million to $7.5 million, with streamlined documentation aimed at smaller properties. Most sponsors solve for execution by asking a dual-network lender to quote both executions side by side — or by running a process that does it for them.
What terms do agency multifamily loans offer in 2026?
As of September 2026, agency multifamily loans typically offer terms of 5 to 30 years with amortization up to 30 years, fixed- or variable-rate options, non-recourse structure with standard carve-outs, and assumability, while maximum LTV and minimum DSCR vary by asset class and product — commonly around 80% LTV and 1.25x DSCR on standard executions.
Fixed agency rates are priced as a lender spread over the Treasury yield that matches the loan term, so the benchmark matters as much as the quote: the 10-Year Treasury (DGS10) was 5.01% and the 5-Year Treasury (DGS5) was 4.86% on the 2026-09-18 observation date. Lender spreads are set deal by deal; see our rates page.
| Feature | Typical agency execution (September 2026) |
|---|---|
| Feature Maximum leverage | Typical agency execution (September 2026) Up to ~80% LTV on standard executions; varies by asset class and product |
| Feature Minimum underwritten DSCR | Typical agency execution (September 2026) ~1.25x on standard executions; varies by asset class and product |
| Feature Term | Typical agency execution (September 2026) 5-30 years |
| Feature Amortization | Typical agency execution (September 2026) Up to 30 years; interest-only available |
| Feature Rate basis | Typical agency execution (September 2026) Fixed (spread over Treasuries) or variable |
| Feature Rate lock | Typical agency execution (September 2026) 30- to 180-day commitments on Fannie Mae DUS |
| Feature Recourse | Typical agency execution (September 2026) Non-recourse with standard carve-outs |
| Feature Prepayment | Typical agency execution (September 2026) Yield maintenance or a declining prepayment premium on Fannie Mae DUS; defeasance on some executions |
| Feature Assumability | Typical agency execution (September 2026) Generally assumable by a qualified buyer |
| Feature Property types | Typical agency execution (September 2026) Multifamily only — including affordable, seniors, student, manufactured housing |
The prepayment column deserves attention: agency debt's biggest structural drawback is exit rigidity. Yield maintenance on an early sale can be expensive, which is why sponsors with shorter business plans often pair a bridge loan with an agency takeout instead — a trade-off we cover in bridge vs. Fannie Mae financing.
What size and type of property qualifies for a DUS loan?
A DUS loan requires an existing, stabilized multifamily property with at least five units (or 50 pad sites for a manufactured housing community), typically 90% occupied for 90 days before funding and owned by a creditworthy single-asset U.S. borrower; Fannie Mae says it finances loan sizes from a $1 million single-asset loan to structured transactions above $1 billion.
Eligible property types on Fannie Mae's DUS term sheet are conventional apartments, affordable housing, seniors housing, student housing, and manufactured housing communities. Pre-stabilized properties are considered case by case, but heavy value-add plans, lease-up deals, and sponsors who expect to sell within a year or two are usually a poor fit; those deals typically use bridge or bank debt first, then refinance into agency once stabilized.
Sponsors are underwritten too: expect scrutiny of multifamily experience, net worth, liquidity, and background items.
How does a DUS loan compare to a bank loan or a bridge loan?
A DUS loan is long-term, non-recourse permanent debt for stabilized apartments; a bank loan is usually shorter balance-sheet debt that often carries recourse but works across property types; and a bridge loan is short-term floating-rate debt for properties still in transition. Which one fits depends mostly on stabilization and hold period.
| Feature | DUS loan | Bank loan | Bridge loan |
|---|---|---|---|
| Feature Best for | DUS loan Stabilized multifamily, long hold | Bank loan Relationship borrowers, most property types | Bridge loan Lease-up, renovation, transition |
| Feature Term | DUS loan 5-30 years | Bank loan Typically shorter, with a balloon | Bridge loan Short-term |
| Feature Rate basis | DUS loan Fixed over Treasuries, or variable | Bank loan Fixed or floating, bank-specific | Bridge loan Floating over SOFR |
| Feature Recourse | DUS loan Non-recourse with standard carve-outs | Bank loan Personal guaranty common | Bridge loan Varies |
| Feature Occupancy | DUS loan Stabilized (typically 90% for 90 days) | Bank loan Lender-specific | Bridge loan Not required |
| Feature Property types | DUS loan Multifamily only | Bank loan Most commercial types | Bridge loan Most types |
For bridge-then-agency plans, see bridge vs. Fannie Mae financing; for the full menu of apartment debt, see multifamily loans.
How do you choose an approved lender — and should you get more than one quote?
Choose an approved agency lender the way you would choose any lender, by getting multiple quotes on the same deal package, because every DUS and Optigo lender sells the same core programs but prices, sizes, and structures them differently. Pricing, proceeds, interest-only, waiver appetite, and rate-lock mechanics all vary between shops.
Two structural reasons quotes vary even inside a standardized program: first, DUS lenders retain risk, so each shop's credit culture shows up in its sizing and its willingness to pursue waivers; second, lenders differ in how aggressively they price to win business in a given quarter. A deal that one desk sizes to 70% proceeds, another may push to 75% with a tier adjustment.
This is where a marketplace process earns its keep. YieldStack is a commercial mortgage brokerage: a human deal team packages your multifamily deal once and negotiates the quotes that come back, while the platform matches it against agency executions alongside bank, debt fund, and CMBS alternatives, so you can see whether agency really is your best execution and which terms are competitive. Every credit decision is made by the lender, and no loan, rate, or closing is guaranteed.
- Upfront cost: Zero upfront — it costs nothing to submit a deal and review offers.
- Broker fee: 0.50–1.00% of the loan amount, paid only at closing.
- Speed: median offer in under an hour, from an institutional lender.
- Matching: 5–8 matched lenders per deal, drawn from 20,000+ loan programs.
Submit your multifamily deal and compare executions side by side →
What is the bottom line on agency approved lenders?
Agency multifamily loans are originated only by approved lenders — Fannie Mae's DUS lenders, who underwrite with delegated authority and typically retain one-third of the risk, and Freddie Mac's Optigo seller/servicers, who originate for Freddie's centralized underwriting and K-deal securitization. The programs are standardized; the quotes are not.
The programs offer leverage, term, and non-recourse structure that banks rarely match on stabilized apartments, so treat agency debt like any other execution and make approved lenders compete for the deal. When you are ready, one submission on YieldStack puts agency-eligible programs and their alternatives on the same comparison sheet.