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Properties to watch in Maryland

Reduced multifamily lending caps for Freddie Mac, Fannie Mae not seen as problem

construction of 414 Light Street

Construction at 414 Light St. in Baltimore. (File Photo)

A reduced lending cap for multifamily loans set by the Federal Housing Finance Agency doesn’t appear to be an issue for 2018.

It appears unlikely that Freddie Mac or Fannie Mae, according to Globe, will reach their 2017 lending caps of $36.5 billion. Those caps are set to be reduced to $35 billion each in 2018, but the previous year’s performance suggests that shouldn’t be a lending hindrance.

While it also indicates that the government sponsored enterprises were being careful with their lending it also shows there’s still financing for multifamily available.

Some builders in Baltimore have said the credit market for multifamily projects has been tightening, making it harder to secure financing for those projects. There’s been speculation the city has encouraged a bubble of multifamily developments and that the city may be over-saturated with the projects.

A slew of arrivals expected this year, including 414 Light St., The Nelson Kohl apartments and 225 N. Calvert St., should provide a solid indicator of remaining demand for market-rate units in the city.

To suggest a property to be featured in Cool Space, Contact Adam Bednar at [email protected].

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