Freddie Mac Commercial Loans
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Freddie Mac Targeted Affordable Housing Preservation
DESCRIPTION
Permanent financing for the acquisition or
refinance of stabilized affordable multifamily properties.
AFFORDABILITY REQUIREMENTS
Low-income qualifying restrictions. 20% or more
units rented to families earning at or below 50% of Area Median Income
(AMI), or 40% or more units rented to families earning at or below 60%
of AMI. However, other affordability types will be considered.
LOAN AMOUNT
Minimum $3 million
LOAN TERM
7 to 30 years.
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Freddie Mac Moderate Rehabilitation Loan
DESCRIPTION
Offers a flexible liquidity source for properties
undergoing significant renovation. Highly customized solutions for
borrowers experienced in completing moderate rehabilitation deals.
Allows for a wide variation in borrower term and structure needs.
ELIGIBLE PROPERTY TYPES
$25,000 – $50,000 in renovations per unit with a
minimum of $7,500 per unit designated for interior work.
Minimum occupancy: rehabilitation plan may not
take debt service coverage ratio below 1.0x on an interest-only basis.
LOAN STRUCTURES
Float-to-fixed. Conversion: fixed-rate after
initial floating period; note rate to be determined at loan
origination. (Note: varying combinations of fixed- and
floating-structures will be considered on a case-specific basis.)
Interest-only during renovation
Hedge: Uncapped during renovation; cap required
post-renovation if not converted to fixed-rate.
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Freddie Mac Conventional Student Housing Mortgage
DESCRIPTION
Financing for the acquisition or refinance of
purpose-built student housing. May consider shorter student lease
terms and combined student body of multiple schools to meet
eligibility requirements.
ELIGIBLE PROPERTIES
Purpose-built student housing properties. Must
have a minimum of one bathroom for every two bedrooms, and each
apartment must have a separate full kitchen.
Stabilized garden, mid-rise, and high-rise
apartment properties that are greater than 50% occupied by student
tenants.
Supporting college/university has 8,000 or more
students. (Student housing properties located within close proximity
to multiple schools that have a combined student body of 8,000
students or more will be considered.)
Property is located less than two miles from
college/university or on a public transportation route.
LOAN AMOUNT
Generally $5 million to $100 million (larger and
smaller loans will be considered)
LOAN TERM
5 to 10 years (up to 30 years for fixed-rate
loans if loan is not purchased for securitization).
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Freddie Mac Conventional Manufactured Housing Community Loan
DESCRIPTION
Non-recourse, assumable financing for the
acquisition or refinance of stabilized manufactured housing
communities (MHCs), with or without age restrictions. (Note: Seniors
Housing Loans are not available with MHC loans.)
LOAN AMOUNT
Minimum $1 million
LOAN TERM
5 to 10 years.
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Freddie Mac Conventional Fixed-Rate Loan
DESCRIPTION
Non-recourse, assumable fixed rate financing for
the acquisition or refinance of stabilized multifamily rental or
cooperative properties.
LOAN AMOUNT
Generally $5 million to $100 million (larger and
smaller loans will be considered)
LOAN TERM
5-, 7-, and 10-year terms (up to 30 years if loan
is not purchased for securitization)
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Freddie Mac Conventional Fixed-Rate Loan
DESCRIPTION
Non-recourse, assumable fixed rate financing for
the acquisition or refinance of stabilized multifamily rental or
cooperative properties.
LOAN AMOUNT
Generally $5 million to $100 million (larger and
smaller loans will be considered)
LOAN TERM
5-, 7-, and 10-year terms (up to 30 years if loan
is not purchased for securitization)
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Freddie Mac Conventional Floating-Rate Loan
DESCRIPTION
Non-recourse, assumable float-rate financing for
the acquisition or refinance of stabilized multifamily rental
properties. Floating-rate loans are not available for cooperative
housing.
LOAN AMOUNT
Generally $5 million to $100 million (larger and
smaller loans will be considered)
LOAN TERM
5-, 7-, and 10-year terms (up to 30 years if loan
is not purchased for securitization)
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Freddie Mac Conventional Supplemental Loan
DESCRIPTION
Non-recourse, assumable fixed-rate and
floating-rate supplemental financing for stabilized multifamily
properties. Cooperative properties are considered on a case-by-case
basis.
SPLIT SUPPLEMENTAL LOAN
A supplemental loan placed at the same time as a
newly originated Freddie Mac first loan.
Loans related to individual mortgages to be
purchased through the Conventional Cash Mortgage Purchase Program,
Targeted Affordable Housing Cash Mortgage Purchase Program, and
conventional structured transactions that are not scheduled for
securitization.
SEASONED SUPPLEMENTAL LOAN
A supplemental loan placed at least 12 months
after origination of the first loan or the previous supplemental loan.
More than one seasoned supplemental loan is permitted.
Loans behind existing first loans in good
standing and purchased through the Conventional Cash Mortgage Purchase
Program, Targeted Affordable Housing Cash Mortgage Purchase Program,
and conventional structured transactions.
Prior loans (first loans and any prior
supplemental loans in place) must have remaining terms of 3 years or
more.
LOAN AMOUNT
Minimum $1 million
LOAN TERM
Split Supplemental: Coterminous with first loan;
30-year maximum
Seasoned: Coterminous with first loan or may
exceed first loan by up to 24 months
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Freddie Mac Direct Purchase of Tax-Exempt Loans
DESCRIPTION
Forward Commitments or Immediate financing for
the acquisition or refinance of affordable multifamily properties with
4% Low Income Housing Tax Credits (LIHTC) with at least 7 years
remaining in the tax credit benefit period.
AFFORDABILITY REQUIREMENTS
Low-income qualifying restrictions. 20% or more
units rented to families earning at or below 50% of Area Median Income
(AMI), or 40% or more units rented to families earning at or below 60%
of AMI. However, other affordability types will be considered. (May
include bond refunding, substitution, or new issue transactions with
80/20 bonds, combination bonds, Section 8, Section 236 tax abatements,
and LIHTC.)
LOAN AMOUNT
Minimum $3 million
LOAN TERM
For LIHTC transactions, the minimum term is equal
to the lesser of the remaining LIHTC period (as long as there are at
least 7 years remaining in the initial tax credit benefit period) or
15 years and the maximum term is 18 years.
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Freddie Mac Small Balance Loans
DESCRIPTION
Financing for the acquisition or refinance of
small balance loans, offering partial-term and full-term
interest-only.
Benefits
Streamlined processes during pricing,
underwriting, closing, and funding
Streamlined loan documents.
Markets nationwide
LOAN AMOUNT
$1 million to $5 million
LOAN TERM
20-year hybrid ARM with initial 5-, 7-, or
10-year fixed rate period; 5-, 7-, or 10-year fixed rate loan.
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Freddie Mac Seniors Housing Program
Non-recourse, assumable financing for the
acquisition or refinance of stabilized independent living (IL) and
assisted living (AL) properties; Properties that assist residents with
memory care (MC) are eligible for financing under Freddie Mac’s
Seniors Housing Program; Communities must have achieved and sustained
at least an average of 90% occupancy for the preceding 90 days; Newly
constructed and stabilized Senior Housing facilities, as well as
campuses containing skilled nursing beds, are also eligible for
Freddie Mac’s Senior Housing program on a case-by-case basis;
Buildings must be fully sprinklered; at least 80% of the beds must be
private pay unless a waiver is granted; Buy-In and rental Continuing
Care Retirement Communities (CCRC’s) are eligible on a case-by-case
basis.
LOAN AMOUNT
Minimum $5,000,000, with exceptions on a
case-by-case basis; Supplemental Loans are available under the Freddie
Mac Seniors Housing Program
LOAN TERM
5-15 years; up to 30 years amortization
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Freddie Mac Affordable Moderate Rehabilitation
Bond Credit Enhancement – 4% LIHTC / 9% LIHTC
Description
Bond Credit Enhancements provide for the moderate
rehabilitation with tenants in place of affordable multifamily
properties with 4% LIHTC.
9% LIHTC: Financing for the
moderate rehabilitation with tenants in place of affordable
multifamily properties with 9% LIHTC.
Type of funding Bond
Credit Enhancements provide for the moderate
rehabilitation with tenants in place of affordable multifamily
properties with 4% LIHTC for the acquisition or refinance of
stabilized affordable multifamily properties.
9% LIHTC: Financing for
acquisition/rehabilitation (max 24 months); based on projected
post-rehab NOI; cash or letter of credit collateral required to fund
gap between supportable debt on current NOI and mortgage amount
(collateral held until stabilization); Interest only during the
rehabilitation/stabilization period.
Eligible properties
Garden, mid-rise or high-rise multifamily
properties with 4% LIHTC undergoing moderate rehabilitation with
tenants in place.
9% LIHTC: Garden, mid-rise or
high-rise multifamily properties with 9% LIHTC that are undergoing
moderate rehabilitation with tenants in place.
Loan term
Minimum of the remaining LIHTC compliance period.
Maximum term of 35 years. Rehabilitation/stabilization period (max 24
months) will be included in loan term.
9% LIHTC: Minimum of the
remaining LIHTC compliance period. Maximum term of 35 years.
Rehabilitation/stabilization period (max 24 months) will be included
in loan term.
*Additional adjustments may be required based
upon property, market and other transaction characteristics.
IMPORTANT: This is not an offer to make a loan, all requests are subject to normal due-diligence and final approval under conditions that are standard for the specific transaction. The above terms and conditions are subject to change without prior notice and other terms and conditions apply.