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FHFA Enables Fannie Mae and Freddie Mac to Expand Support for Rental Housing The Federal Housing Finance Agency announced higher caps for 2025 that allow the Enterprises to purchase up to $146 billion in multifamily loans and will continue to exempt workforce housing from the limit for immediate release 11/18/2024 Washington, D.C. – The Federal Housing Finance Agency (FHFA) will allow greater rental housing support from Fannie Mae and Freddie Mac (the Enterprises) by raising the multifamily loan purchase cap for each Enterprise to $73 billion, representing $146 billion in total 2025 multifamily market support and a more than 4 percent increase from 2024, the Agency announced today. FHFA establishes the caps every year, and they are later included in Appendix A of the Enterprises’ Conservatorship Scorecard, a set of annual priorities that they are expected to meet. Just like in 2024, when the cap for each Enterprise was $70 billion, multifamily loans that finance workforce housing will be excluded from the 2025 limits. “The 2025 multifamily loan caps reflect the Enterprises’ strong commitment to provide liquidity to make renting a home more affordable,” said FHFA Director Sandra L. Thompson. “Additionally, the ongoing workforce housing exemption will continue to enhance the Enterprises’ ability to support properties that preserve affordable rents, including properties preserved or created through corporate-sponsored affordable housing initiatives.” Over the past year, since workforce housing was first exempted from the caps, both Enterprises have seen encouraging growth in this critical market segment. In addition, FHFA is continuing to require that at least 50 percent of the Enterprises’ multifamily businesses be mission-driven. The Agency will continue to monitor the multifamily mortgage market and maintains the ability to raise the caps further if necessary to support liquidity in the market. However, to prevent market disruption, if FHFA determines that the actual size of the 2025 market is smaller than was initially projected, FHFA will not lower the caps.   2025 Multifamily Caps Fact Sheet

Exciting developments in rental housing! The Federal Housing Finance Agency (FHFA) has raised 2025 multifamily loan purchase caps for Fannie Mae and Freddie Mac to $146 billion, reflecting over a 4% increase from 2024. Here's what this means for the market: Increased support for rental housing: Higher caps aim to provide liquidity and make renting more affordable. Continued focus on workforce housing: Loans for workforce housing remain exempt from the limits, promoting affordable rent preservation. Mission-driven impact: At least 50% of multifamily loans will focus on mission-driven objectives, strengthening housing support nationwide. Flexibility for market adjustments: The FHFA retains the ability to raise caps further if necessary to ensure market stability. This move underscores a strong commitment to address housing affordability while supporting economic resilience in multifamily markets. #Colliers #Pittsburgh #MoreIn24 #ThriveIn25 #ClosersCoffee #ColliersCapitalMarkets https://lnkd.in/e8qA5_hj

Renters currently have a steep climb to homeownership. Homebuyers are paying well over 7% for 30-year fixed mortgages and home prices are near October's all-time high after a 6.03% year-over-year increase in January, according to the Case-Shiller Home Price Index. Faced with a housing affordability crisis, states like Wisconsin are launching programs to foster public-private partnerships around workforce and affordable housing. "Cities and states have increasingly entered into partnerships with private developers to create workforce housing, leveraging the use of tax-exempt bonds, tax incentives, low-rate government loans and other subsidies to encourage development," Fitch Ratings noted in a recent report. The federal government has also expanded certain loan initiatives, including several Department of Transportation programs which can help developers whose projects incorporate access to public transit. Analysts at Fitch and S&P Global Ratings said they've had multiple conversations with market participants interested in ratings on projects that incorporate the DOT programs, and the combination of housing market conditions and new federal support mechanisms "could lead to more issuance in the debt markets." Many thanks to Fitch's Karen Fitzgerald, CFA and Kasia Reed, S&P's Nora Wittstruck and Caroline West and Wisconsin's WHEDA for sharing thoughts on this story. 

🏡 FHFA Raises Caps for Freddie Mac and Fannie Mae: Supporting Multifamily Housing in 2025 🏡 The Federal Housing Finance Agency (FHFA) has announced an increase in multifamily loan purchase caps for Fannie Mae and Freddie Mac in 2025. Here’s what this means for the rental housing market: 💵 Increased Loan Caps: Both Fannie Mae and Freddie Mac can now purchase up to $73 billion each, totaling $146 billion, a 4% increase from 2024. 🤝 Focus on Workforce Housing: Loans for workforce housing remain exempt from caps, emphasizing affordable rent preservation and new corporate-sponsored initiatives. 📈 Mission-Driven Investments: At least 50% of multifamily loans will remain focused on mission-driven housing, ensuring support for lower-income households and rural areas. 🔄 Market Flexibility: FHFA retains the ability to adjust caps further to support liquidity but won’t reduce them even if market projections shrink. 💡 Addressing Future Supply: With many loans maturing in 2025 and a slowdown in new supply, this move aims to maintain liquidity and encourage continued investment in housing. This policy shift reflects a strong commitment to stabilize the multifamily housing market while addressing affordability and accessibility for renters. #Colliers #Pittsburgh #MoreIn24 #ThriveIn25 #ClosersCoffee #ColliersCapitalMarkets https://lnkd.in/dd9GZdUz

MDW Cape Town INC to Support Housing Access for some 19,700 Families in Stellenbosch MDW Cape Town INC has been appointed by Stellenbosch Municipality to assist and guide over 19,700 individuals and their families currently on the Cloetesville housing waiting list, in their journey to homeownership. This large-scale initiative aims to provide aspiring homeowners with the knowledge and support they need to secure affordable housing, tailored to their financial circumstances. The programme will focus on the following key areas: Income Evaluation: Guidance on how applicants’ income can be leveraged to secure a home. Credit Profile Assistance: Helping individuals understand their credit scores and improve their profiles to become more attractive candidates for property finance. First Home Finance Subsidy: Previously known as FLISP, this subsidy is available for first-time homebuyers. MDW will offer insights into how individuals can access this support based on their eligibility. Property Finance Support: A roadmap for securing property financing from financial institutions, with an emphasis on building a credit profile that qualifies for a home loan. MDW Cape Town INC will also provide debt management services, assisting applicants in reducing existing debt, improving their credit scores, and setting up sustainable financial plans. The initiative aims to empower individuals through education on financial literacy, homeownership processes, and the effective use of subsidies. This collaboration marks a significant step towards resolving the housing backlog in Stellenbosch, with a comprehensive approach that balances individual needs with financial realities.

Multifamily Support Increasing =>Opportunity to Optimize Investments The Federal Housing Finance Agency (FHFA) has increased the multifamily loan purchase caps for Fannie Mae and Freddie Mac to $73 billion each for 2025, totaling $146 billion—a 4% rise from 2024. These caps support affordable rental housing, with exemptions for workforce housing loans to ensure resources for preserving affordable rents. Additionally, at least 50% of the Enterprises’ multifamily business must be mission-driven. This initiative highlights the FHFA’s commitment to improving rental housing affordability and liquidity in the market. With multifamily investments gaining unprecedented government support, now is the perfect time to act. Whether you're an investor seeking to capitalize on these opportunities or a property owner considering selling in this evolving market, HannaCRE is here to help. Our team offers unparalleled expertise in identifying lucrative multifamily investments and strategically positioning properties for sale to maximize value. Contact us today to navigate the multifamily sector with confidence in this ever-changing environment! https://lnkd.in/gctxRn3s ..

𝗖𝗮𝗻𝗮𝗱𝗮’𝘀 𝗦𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝘆 𝗦𝘂𝗶𝘁𝗲 𝗟𝗼𝗮𝗻 𝗣𝗿𝗼𝗴𝗿𝗮𝗺 𝗘𝘅𝗽𝗮𝗻𝗱𝘀: 𝗪𝗵𝗮𝘁 𝗬𝗼𝘂 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗞𝗻𝗼𝘄 🏡💵 Starting January 15, 2025, homeowners will have access to expanded government programs to finance renovations and create rental units. Here’s a breakdown: 🔑 𝗣𝗿𝗼𝗴𝗿𝗮𝗺 𝗨𝗽𝗱𝗮𝘁𝗲𝘀 𝟭. Secondary Suite Loan Program - Loan limit doubles to $80,000. - Offered at a 2% interest rate with a 15-year term. - Designed to fund smaller projects like basement suites or laneway homes. 𝗚𝗼𝗮𝗹: Increase housing density and address the rental housing shortage. 𝟮. Mortgage Refinancing Option - Homeowners can refinance up to 90% of post-renovation value (up to $2 million). - Loans can be amortized over 30 years. - Ideal for larger renovation projects that boost home value significantly. 📈 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿𝘀 𝗔𝗱𝗱𝗿𝗲𝘀𝘀𝗲𝘀 𝗥𝗲𝗻𝘁𝗮𝗹 𝗦𝗵𝗼𝗿𝘁𝗮𝗴𝗲𝘀: Adds new housing units to help close the gap of 658,000 homes needed by 2030. 𝗦𝘂𝗽𝗽𝗼𝗿𝘁𝘀 𝗠𝘂𝗹𝘁𝗶-𝗚𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗟𝗶𝘃𝗶𝗻𝗴: Helps families create living spaces for parents or adult children. 𝗟𝗼𝘄-𝗖𝗼𝘀𝘁 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴: The 2% rate and extended terms make financing accessible for homeowners. 🤔 𝗪𝗵𝗶𝗰𝗵 𝗢𝗽𝘁𝗶𝗼𝗻 𝗜𝘀 𝗥𝗶𝗴𝗵𝘁 𝗳𝗼𝗿 𝗬𝗼𝘂? 𝗦𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝘆 𝗦𝘂𝗶𝘁𝗲 𝗟𝗼𝗮𝗻: - Best for smaller renovation projects (e.g., adding a rental unit). - Low interest and shorter term (15 years). 𝗠𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗥𝗲𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴: - Ideal for larger projects or significant home upgrades. - Higher loan limits and longer repayment term. - Suitable for financially stable homeowners with 20%-35% equity. 📣 𝗘𝘅𝗽𝗲𝗿𝘁 𝗢𝗽𝗶𝗻𝗶𝗼𝗻𝘀 Step in the Right Direction: "A meaningful solution to boost supply but doesn’t solve construction capacity challenges," says Lauren van den Berg, Mortgage Professionals Canada. Caution for Large Projects: "Strong financial foundation is crucial for big renovations," says Ross Taylor. Projects with only 10% equity on a $2-million property are risky. 🛠️ 𝗪𝗵𝗮𝘁’𝘀 𝗡𝗲𝘅𝘁? More Details: Full guidelines expected in the Fall Economic Statement on December 16, 2024. 💡 Whether you're planning a small basement suite or a major renovation, these programs open up new opportunities for homeowners to create value and increase housing availability across Canada. 🏠✨

FHFA to raise the 2025 multifamily loan caps for Fannie, Freddie by 4% https://ift.tt/ESabwf9 The Federal Housing Finance Agency (FHFA) on Monday announced that it will raise the 2025 multifamily loan caps for purchases by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac to $73 billion each. This represents a total of $146 billion in multifamily market support for next year, an increase of more than 4% from 2024 levels. FHFA establishes these caps every year, and as was the case for 2024, “multifamily loans that finance workforce housing will be excluded from the 2025 limits,” the announcement explained. FHFA Director Sandra Thompson said that the new caps highlight the agency’s efforts to make rental housing more affordable. “Additionally, the ongoing workforce housing exemption will continue to enhance the Enterprises’ ability to support properties that preserve affordable rents, including properties preserved or created through corporate-sponsored affordable housing initiatives,” Thompson said. Workforce housing was first exempted from the caps last year. Since that point, “both Enterprises have seen encouraging growth in this critical market segment,” the FHFA said. “In addition, FHFA is continuing to require that at least 50% of the Enterprises’ multifamily businesses be mission-driven,” which continues a requirement unveiled last year. FHFA said it will continue to monitor the multifamily mortgage market and reserves the right to raise the caps again to support market liquidity, if it’s deemed necessary. But in an effort to prevent disruption, “if FHFA determines that the actual size of the 2025 market is smaller than was initially projected, FHFA will not lower the caps,” the agency explained. FHFA has set the caps on the GSEs’ conventional multifamily businesses since 2015. While some previous exclusions were in effect, FHFA in 2019 moved to revise the cap structure to apply to all multifamily business, removing many of the previous exclusions and tightening the criteria for loans that are eligible for exclusion. via HousingWire https://ift.tt/Gik0yEA November 18, 2024 at 11:12AM

Multi-generational housing! There has been a higher demand over the past year for homeowners expanding their current residence or wanting to build a new house with an ADU/DADU (accessory dwelling unit or detached accessory dwelling unit). We have even had requests for stick-built and manufactured home 1-unit residents with 2 and 3-DADU’s.  Many states and counties have expanded their zoning to allow more than one ADU/DADU and allow the units to be rented. Agencies have been a little slow to change they're selling guidelines to allow for these property types, which restricts lenders from offering the loan programs to their borrowers. More importantly, since these property types are fairly new in most areas, there are little to no comparables available and the appraisal is not likely to support the borrowers loan request. Generally, the lender requires the proposed project (what you are building) to be the highest and best use of the property. If the appraiser states the highest and best use of the property  is something different, that will affect the lending parameters and the borrower’s loan request. The picture in the post below is just for fun and not a real loan submission. The lending industry had seen a sharp increase in rates from late-2021 to mid-2023 and that increase had stopped many of our customers from moving forward with their construction loans due to elevated debt to income ratios. The good news is, we are now seeing many of those customers come back and give us the opportunity to help them build their dream. Should I build now or wait for rates to come down? That's a great question and I have been asked that same question many times. Here is my opinion; the industry is thinking rates will decrease approximately 0.5% over the next year or so. That 0.5% equates to approximately $200 per month on a $600,000 loan. The cost to build a house is likely to increase 2% to 3% in that same time. That increase is approximately $18,000 at 3%.  It will take a homeowner approximately 88-months to break even from the increase to build their house versus the decrease in rates. My recommendation is build now and readjust your rate if rates decrease at a later date. 

**FHFA's Strategic Move to Enhance Rental Affordability** The Federal Housing Finance Agency (FHFA) is set to increase the multifamily loan purchase caps for Fannie Mae and Freddie Mac by 4% in 2025, raising them to $73 billion each. This increase is targeted to address rental affordability challenges and align with evolving market needs. Significantly, loans supporting workforce housing remain exempt from these caps, ensuring ample funds for affordable rental housing initiatives. This policy, part of FHFA's annual Conservatorship Scorecard priorities, underscores a mission-focused commitment where at least half of multifamily activities target affordable housing. The broader initiative aims to enhance mortgage liquidity for nearly 690,000 renter and over 90,000 homeowner households, particularly in underserved markets such as manufactured and rural housing. With a flexible stance to adjust loan caps contingent on market conditions, FHFA aims to support borrowers without causing disruptions. How do you see these changes impacting the rental housing market, and what might be the implications for affordable housing initiatives in your area?