Commercial Financing: Agency or Non-Agency

July 20, 2017


It can be difficult to determine the correct loan to obtain when seeking funding for your commercial investments. Agency or non-agency? Which is the better route? While there are many factors that come into play in understanding the best possible package for you, it is helpful to understand the basic differences between agency and non-agency loans.


Agency loans are created by one of three quasi-government agencies: Government National Mortgage Association (known as GNMA or Ginnie Mae), Federal National Mortgage (FNMA or Fannie Mae), and Federal Home Loan Mortgage Corp (Freddie Mae). These loans are backed by the government or sponsored by the government, and therefore have many guidelines to follow and little default risk.


Private entities, such as financial institutions, can also issue loans. These are referred to as “non-agency” or “private label” companies. These loans are therefore not guaranteed by the U.S. government or any government-sponsored enterprise. The private entities or non-agency institutions do not need to comply with agency standards or guidelines, allowing for shorter turn times and the ability to work with more variable situations.


This table provides a brief summary of the key differences between non-agency and agency loans.



Our resources and expertise allow us to secure loans, regardless of the specifics of your investment. We have access to a variety of lenders, keep up with their overlays, and can quickly identify which programs and pricing fits your needs. This allows us to create the best package for your timeline, budget, and qualifications, saving valuable time and ensuring smart investment. We take care of tedious evaluation and paperwork tasks to streamline your loan process, whether it’s government-backed or privately sourced. Request a consultation to start your loan process.

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