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The Federal Housing Finance Agency has set 2026 multifamily loan-purchase caps at $88 billion each for Fannie Mae and Freddie Mac, raising total agency capacity to $176 billion — roughly 20% above 2025 levels. The long-standing requirement that at least 50% of activity be mission-driven remains intact, with workforce housing loans continuing to qualify for cap exemptions. Caps apply to both acquisitions and refinancings, and FHFA retains discretion to raise limits further if market conditions warrant.
➤ SIGNAL
FHFA’s decision to expand 2026 multifamily caps reinforces the agencies’ role as a stabilizing force in apartment finance. By increasing purchase authority while preserving the mission-driven threshold, the agency is signaling continuity rather than policy shift. Federal liquidity will remain available — but it will continue to be directed deliberately toward affordable, workforce, and underserved housing segments.
In a lending environment defined by cautious banks and selective credit, agency capital remains one of the few dependable financing channels. Higher caps improve refinancing certainty and underwriting confidence for borrowers facing maturities, while the 50% mission-driven requirement ensures federal balance sheets are not used to subsidize purely market-rate risk. The policy reinforces where capital can flow, not just how much.
FHFA will track utilization and refinancing demand throughout 2026 and may adjust caps upward if absorption accelerates. Borrowers should expect continued prioritization of affordable and workforce housing transactions. Non-mission loans may face allocation pressure later in the year as caps approach capacity, particularly if refinancing volumes rise.
➤ Takeaway
FHFA’s 2026 multifamily caps expand agency lending capacity while reaffirming affordable housing priorities. Higher limits improve refinancing visibility and deal certainty, but mission-driven requirements will continue to shape where federal capital concentrates across the multifamily market.
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