Multifamily lending in New York, particularly Freddie Mac loans, have become more popular among Landlords in the first nine months of 2017.
Freddie Mac’s small-balance loan program, which it launched in 2014, has granted $968.6 million in loans throughout the state’s metro area. The figure represented almost twice the amount that the agency funded in 2016, when it provided $531.2 million in loans.
David Brickman, head of Freddie Mac’s multifamily business, said that the increase in lending activity represents the agency’s active efforts on bolstering affordable and workforce housing. Another reason included the Federal Housing Finance Agency’s exclusion of certain segments in the workforce housing market, which allowed Freddie Mac to provide loans more than the annual lending limit.
By doing so, it has funded $2.2 billion in loans in the metropolitan areas from the “uncapped” pool. Property consultancy firm Cushman & Wakefield believes that Freddie Mac’s has become “the lender of choice on certain deals for multifamily and mixed-use properties,” due to its aggressive stance on multifamily lending.
The pace of growth in multifamily loans not just takes place in New York, but also to the rest of the country. In 2016, the Mortgage Bankers Association said that lending volume nationwide amounted to $269.2 billion in new mortgages for apartment buildings.
This figures represented an 8% year-over-year increase. Borrowers used the loans for the construction of apartments with five or more units. Real estate owners had wider access to mortgage credit in the previous year, due to a strong property market, low rates, and increasing property values, according to Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.
An increase in multifamily loans for apartment projects in New York and nationwide reflected a strong demand from borrowers. When do you plan to apply for a Freddie Mac loan?