Answer
What is agency debt for multifamily?
Agency debt refers to Fannie Mae and Freddie Mac multifamily loans, the standard financing for 5+ unit apartment buildings. Fixed rates for 5, 7, 10, or 12 years; 30-year amortization; typical 65–75% LTV at 1.25x DSCR minimum. Rates are the tightest available. Origination is slower (60–90 days) than bank debt but the terms are meaningfully better.
Why buyers prefer agency
Lower rates, higher LTV, longer terms, and non-recourse (for the borrower). Every serious multifamily buyer above $2M uses it when eligible.
What disqualifies a building
Under 5 units, insufficient occupancy history, deferred maintenance items agencies won't finance, or borrower experience gaps. Agencies underwrite both the property and the sponsor.
Local context
This answer reflects how deals actually trade in Cameron Samimi's core coverage area: the South Bay (Torrance, Redondo Beach, Hawthorne, Lawndale, Gardena, El Segundo), Long Beach (Alamitos Beach, Belmont Heights, Wrigley, Bixby Knolls, Downtown), and Westside LA. Pricing, rent regulation, and buyer depth differ materially between these submarkets — verify the specifics for your property before acting.
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