Fannie & Freddie Loan Caps Rise: What's Blocking Your Loan? #shorts
In this YouTube short, the speaker explains that the Federal Housing Finance Agency (FHFA) increased the 2026 purchase loan caps for Fannie Mae and Freddie Mac to $88 billion each (about $176 billion combined), roughly a 20 % rise over the prior year. While this increase means more capital is available for borrowers, the speaker argues that the real obstacle to obtaining a loan is the minimum Debt Service Coverage Ratio (DSCR) requirement of 1.25 imposed by the Agency Small Loan Programs. In plain terms, a property's Net Operating Income must be at least 25 % higher than its annual loan payment, not merely equal to it. This DSCR threshold is presented as the primary gate preventing borrowers from accessing the newly available loan capacity.
