Freddie Mac Commercial Loans

  • 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.

  • 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. 

  • 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). 

  • 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. 

  • 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) 

  • 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) 

  • 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) 

  • 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 

  • 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. 

  • 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. 

  • 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 

  • 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.