How does multifamily debt sizing work?

Each multifamily program runs its own 3-constraint underwriting test: DSCR floor, LTV cap, and Debt Yield minimum. The smallest result is your maximum loan. Different programs have different constraints — Fannie DUS at 1.25x DSCR / 80% LTV / ~7.5% debt yield; HUD 223(f) at 1.176x DSCR / 85% LTV / similar debt yield; CMBS at 1.25x DSCR / 75% LTV / 7.5-8.0% debt yield. The right program is the one that delivers the loan size + features the sponsor needs.

Which multifamily program prices tightest?

May 2026 ranking: HUD 223(f) tightest at 5.10–5.75% (35-yr fully-amortizing fixed). Fannie DUS 5.25–5.95%. Freddie Optigo + SBL 5.30–6.00%. CMBS multifamily 5.50–6.30%. Bank portfolio 6.25–7.50%. Multifamily bridge 8.50–11.50%. Tightest pricing comes with most underwriting friction — HUD 6-9 month timeline + MAP sponsor approval.

What's HUD 223(f) and why is it the cheapest?

HUD 223(f) is FHA-insured permanent multifamily debt for stabilized properties. 35-year fully-amortizing fixed rate, non-recourse, assumable. Tightest rates because of FHA insurance + government backing. Trade-off: 6-9 month underwriting timeline, MAP-list sponsor approval required, $50K+ MIP funding fee, prevailing-wage labor compliance during construction or substantial rehab. Best fit: long-hold sponsors $5M+ with patience for the timeline.

Free Multifamily Tool

Multifamily Debt Sizer

NOI + appraised value → max loan across HUD, Fannie, Freddie, CMBS, bank, bridge. 3-constraint test per program (DSCR / LTV / Debt Yield). May 2026 rates.

Trailing-12-Month NOI

Appraised Value

Program Producing Largest Loan

HUD 223(f): $20.00M (Debt Yield binds at 5.40%)

Program	Rate	Max Loan	Binding	By DSCR / LTV / DY
HUD 223(f)	5.40%	$20.00M	Debt Yield	$20.04M / $21.25M / $20.00M
Fannie Mae DUS	5.60%	$17.42M	DSCR	$17.42M / $20.00M / $20.00M
Freddie Mac Optigo	5.65%	$17.32M	DSCR	$17.32M / $20.00M / $20.00M
CMBS Multifamily	5.85%	$16.95M	DSCR	$16.95M / $18.75M / $20.00M
Bank Portfolio	6.85%	$13.79M	DSCR	$13.79M / $18.75M / $18.75M
Multifamily Bridge	9.50%	$14.35M	DSCR	$14.35M / $18.75M / $17.65M

May 2026 indicative rates. HUD 223(f) prices tightest but adds 6-9 month timeline + MAP sponsor approval + MIP fee. Agency (Fannie/Freddie) is the institutional default. CMBS adds cash-out flexibility. Bridge for value-add transitions.

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Reading the Output

The "Max Loan" column shows what each program will fund given your NOI + appraised value. The "Binding" column shows which constraint is the limiting factor. The largest loan wins for capital efficiency, but each program has trade-offs.

HUD 223(f) typically produces the largest loan AND the tightest rate — but at a 6-9 month timeline + MAP sponsor approval. For most stabilized $5M+ multifamily refis, agency (Fannie or Freddie) is the right pragmatic choice. CMBS wins when sponsor needs cash-out + portfolio recap features. Bridge for value-add holds with stabilization-then-permanent take-out path.

Need program routing for your multifamily deal?

PeerSense routes multifamily deals across Fannie / Freddie / HUD / CMBS / bank / bridge based on sponsor profile + hold thesis + leverage need. Pre-cleared submissions close 14-28 days faster.

Today's Multifamily Rates