Sample Freddie Mac Terms For Apartment Loans in 2024

Advantages

• Highly competitive pricing.

• Early rate lock.

• Up to 80% LTV.

• Partial-term and full-term interest-only available.

• Supplemental loans are available.

• Non-recourse.

Disadvantages

• Selective of the properties they will finance.

• Require financially strong borrowers.

Freddie Mac Fixed-Rate Conventional Loans

Multifamily investors and developers searching for a flexible form of Freddie Mac financing need look no further than the Freddie Mac Fixed-Rate Conventional Loan. Freddie Mac Fixed-Rate Conventional Loans are incredibly versatile, allowing for the financing of standard multifamily properties, student housing, seniors housing, cooperative housing developments, and targeted affordable housing properties, including Section 8 and certain LIHTC developments. Plus, these loans are non-recourse, offer flexible terms and amortizations of up to 30 years, and can offer financing up to $100 million (larger loans may be made on a case-by-case basis.) 

Click the link below to learn more, or click here to download our easy-to-read Freddie Mac Fixed-Rate Loan term sheet.

Learn more about Freddie Mac Fixed-Rate Loans.

Freddie Mac Float-to-Fixed-Rate Loans (Two-Plus-Seven) 

Are you a multifamily investor who wants to save cash upfront, while locking in a fixed rate for at least several years of your loan? If so, the Freddie Mac Float-to-Fixed-Rate Loan (Two-Plus-Seven) could be a fantastic option. This loan offers two years of floating-rate financing, followed by a fixed-rate loan period of seven years (hence two-plus-seven). Plus, borrowers can lock their fixed interest rate at closing, so they don't have to worry about rates going up during the first two years of the loan. Freddie Mac Float-to-Fixed-Rate Loans are available for most conventional and affordable properties, with the notable exceptions of seniors housing projects, student housing developments, and manufactured housing communities.

Learn more about Float-to-Fixed-Rate loans.

Freddie Mac Floating-Rate Loans 

If you're an investor or developer looking for adjustable-rate source of financing for a multifamily property, the Freddie Mac Floating-Rate Loan could be the ideal solution. Freddie Mac Floating-Rate Loans are offered in 5-, 7-, and 10-year terms with amortizations of up to 30 years, and allow LTVs of up to 80%. Plus, Freddie Mac Floating-Rate Loans are non-recourse, have flexible prepayment options, and permit eligible mixed-use developments — making them a great way to finance a variety of different kinds of multifamily properties.

Click the link below to learn more, or click here to download our easy-to-read Freddie Mac Floating-Rate Loan term sheet.

Learn more about Freddie Mac Floating-Rate loans.

Freddie Mac HUD Section 8 Financing 

Running a Section 8 property isn't always easy; but those who manage it often reap significant financial rewards. With Freddie Mac HUD Section 8 Financing, you can finance the acquisition of Section 8 properties and enjoy the benefits yourself. Freddie Mac HUD Section 8 Financing is available in 10-30 year terms for Low-Income Housing Tax Credit (LIHTC) properties and 5-15 year terms for non-LIHTC properties. In addition, these loans offer up to 90% maximum LTV and as low as 1.15x DSCR for LIHTC properties, and up to 80% maximum LTV and as low as 1.20x DSCR or non-LIHTC developments. 

Learn more about Freddie Mac HUD Section 8 Financing.

Freddie Mac Manufactured Housing Community Loan

In areas without large amounts of affordable housing, manufactured housing communities provide an essential role — helping Americans of all ages find safe, high-quality housing without breaking the bank. In order to help maintain the supply of manufactured housing in the U.S., Freddie Mac’s Manufactured Housing Community Loan offers excellent terms for investors and developers, including non-recourse execution and LTVs of up to 80% for eligible properties. Plus, these loans are available in flexible 5-, 7-, and 10-year terms, with amortizations of up to 30 years, giving them enough versatility to finance MHCs with a variety of different financing needs. 

Learn more about Freddie Mac Manufactured Housing Community Loans.

Manufactured Housing Resident Owned Community Loans

You might already know that manufactured housing communities (MHCs) are an essential source of affordable housing — especially in rural and non-urban areas. However, in many cases, resident-owned manufactured housing communities are even better – allowing Americans on a budget to have an ownership stake in the place they live. To help resident-owned MHCs thrive, Freddie Mac's Manufactured Housing Resident Owned Community (MHROC) Loan includes generous terms, such as an LTV allowance of up to 70% and flexible 5-30 year fixed-rate terms with amortizations of up to 30 years. Plus, Freddie Mac MHROC Loans are non-recourse, permit supplemental financing, and allow for both acquisition/conversion and seasoned refinancing transactions. 

Learn more about Freddie Mac MHROC Loans.

Freddie Mac Student Housing Loans

Across the U.S., student housing is a booming market — and, for ambitious investors and developers, a Freddie Mac Student Housing Loan could be one of the most cost-effective ways to enter it. Freddie Mac Student Housing Loans offer flexible terms of between 5-10 years (up to 30 for non-securitized, fixed-rate loans), loan amounts of between $5 and $100 million, and LTV allowances of up to 80%. Plus, these loans are non-recourse, allow for supplemental financing, and permit both the acquisition and refinancing of student housing properties. 

Click the link below to learn more, or click here to download our easy-to-read Freddie Mac Student Housing Loan term sheet.

Learn more about Freddie Mac Student Housing Loans.

Freddie Mac Green Advantage

If you're considering taking out a Freddie Mac multifamily loan for a conventional, seniors, or targeted affordable housing property, you should also know that you could receive better pricing by using Freddie Mac's Green Advantage Program. By getting a Green Assessment and committing to reducing their building's water/sewage usage by 25%, investors and developers can access higher LTV allowances and lower DSCR requirements for their loans. Plus, Freddie Mac reimburses properties up to $3,500 (at closing) for the costs of their energy assessment. 

Click the link below to learn more, or click here to download our easy-to-read Freddie Mac Green Advantage Loan term sheet.

Learn more about Freddie Mac Green Advantage.

Freddie Mac Lease-Up Loans

Experienced multifamily investors know that when it comes to newly constructed properties, keeping the property afloat during the lease-up period can sometimes be a serious challenge. Fortunately, the Freddie Mac Lease-Up Loan is here to help. Freddie Mac Lease-Up Loans are available for both the acquisition and refinancing of newly built multifamily developments, including Conventional, Seniors, and Targeted Affordable properties. Plus, these loans are non-recourse, offer LTVs of up to 75%, and, like many other forms of Freddie Mac Multifamily financing, permit eligible mixed-use properties. 

Learn more about Freddie Mac Lease-Up Loans.

Freddie Mac Moderate Rehab Loans 

Sometimes, a multifamily property needs a significant renovation — but not a complete overhaul, in order to increase its marketability and profitability. If this describes a property that you own or operate, you might want to consider a Freddie Mac Moderate Rehab Loan. Designed for conventional properties planning between $25,000 and $60,000 per unit in renovations, these loans also offer LTV allowances of up to 80% of the property's as-is value, flexible loan terms and amortizations, and an up to 36-month interest-only period during rehabilitation. 

Learn more about Freddie Mac Moderate Rehab Loans.

Freddie Mac Revolving Credit Facility 

Investors and developers who are managing a large portfolio of multifamily properties shouldn't have to take out an additional loan each time they want to acquire a new property. Fortunately, with Freddie Mac's Revolving Credit Facility, they don't have to. Freddie Mac Revolving Credit Facilities provide a non-recourse, incredibly flexible form of financing for large-scale investors; cross-collateralized and cross-defaulted Credit Facilities have no LTV or DSCR requirements on a property basis, as these figures are only examined on the basis of the Credit Facility as a whole. Plus, Fannie Mae Credit Facilities allow borrowers to move properties in and out of the facility without substitution, as well as to purchase a variety of different asset types using the same facility. 

Learn more about Freddie Mac Revolving Credit Facilities.

Freddie Mac Single-Sponsor Execution

If you're looking for $250 million+ to finance one or more large multifamily properties, a regular Freddie Mac Multifamily loan simply won't do. Fortunately, Freddie Mac's Single-Sponsor Execution is specifically developed to tailor to the needs of the largest investors and developers in the industry. Freddie Mac Single Sponsor Execution financing offers flexible terms of up to 30 years for fixed-rate loans and up to 10 years for floating-rate loans, is non-recourse, and offers both partial and full-term interest-only options. Plus, this form of financing is available for all Freddie Mac Multifamily property types, including Targeted Affordable Housing, Conventional properties, Student Housing, Seniors Housing, and Manufactured Housing Communities. 

Learn more about Freddie Mac Single-Sponsor Execution.

Freddie Mac Student Housing Value-Add Loan

After exploding in the last decade, the student housing market is still growing strong across the U.S. but investors that want to compete need to make sure their properties are up to par. To do so, they often need to invest in light repairs — repairs that can easily be financed with a Freddie Mac Student Housing Value-Add Loan. Freddie Mac Student Housing Value-Add Loans, which are designed for student housing developments with planned repairs of between $10,000 to $25,000/unit, offer some pretty fantastic terms — including LTV allowances of up to 85%, interest-only financing, and no lock-outs. Plus, these loans offer Freddie Mac's standard non-recourse execution and are available for both acquisitions and refinances, making them a flexible and fantastic choice for all kinds of student housing developers. 

Learn more about Freddie Mac Student Housing Value-Add Loans.

Freddie Mac Supplemental Loans

Freddie Mac Multifamily borrowers looking for extra financing for their property need look no further than the Freddie Mac Supplemental Loan. Freddie Mac Supplemental Loans offer LTV allowances of up to 80%, are non-recourse, and have a minimum loan amount of $1 million. Plus, these loans are fully assumable with lender approval and a 1% fee.

Learn more about Freddie Mac Supplemental Loans.

Freddie Mac Value-Add Loans

If you're a multifamily investor or developer interested in acquiring a property and making light renovations or making light renovations to a property that you currently own, the Freddie Mac Value-Add Loan could be the perfect solution. Freddie Mac Value-Add Loans offer LTV allowances of up to 85%, are non-recourse, and are available for both acquisitions and refinances. Unlike Freddie Mac Moderate Rehab Loans, which are designed to finance more substantial renovations, Freddie Mac Value-Add Loans are intended to fund more modest renovations of between $10,000 and $25,000 per unit. 

Learn more about Freddie Mac Value-Add Loans.

Freddie Mac Workforce Housing Mezzanine Loans

Investors and developers interested in preserving an affordable housing development may want to consider a Freddie Mac Workforce Housing Mezzanine Loan. These loans, which are simultaneously originated with a 10-year Freddie Mac Conventional Loan in one streamlined process, allow borrowers to access combined LTVs of up to 90% and combined DSCRs as low as 1.05x. And, while borrowers must agree to keep 80% of the units affordable (not increasing more than a certain amount each year), some pass-through expenses are allowed, including pass-through expenses for limited capital improvements. 

Learn more about workforce housing mezzanine loans.

Freddie Mac Small Balance Loans

Smaller investors looking to make a splash in the multifamily market don't necessarily need to look for Fannie Mae financing or get an expensive privately-insured loan. Instead, they might find exactly what they're looking for in the Freddie Mac Small Balance Loan program. Freddie Mac Small Balance Loans have a minimum loan amount of $750,000 and a maximum amount of $7.5 million, offer LTVs of up to 80%, and have 30-year amortizations. Plus, these loans are non-recourse and offer flexible terms of 5-20 years, with partial and full-term interest-only options available. 

Click the link below to learn more, or click here to download our easy-to-read Freddie Mac Small Balance Loan term sheet.

Learn more about Freddie Mac Small Balance Loans.

Freddie Mac Bridge to Resyndication 

Acquiring or refinancing a property with expiring Low-Income Housing Tax Credits (LIHTCs) can sometimes be a challenge — but the Freddie Mac Bridge to Resyndication loan program can make it easier than ever. Bridge to Resyndication loans have a term of 24 months and permit LTVs of up to 85%, DSCRs as low as 1.15x, and are interest-only. Plus, these loans support eligible mixed-use properties and allow for one, 6-month loan extension (with approval.) 

Learn more about Freddie Mac Bridge to Resyndication.

Freddie Mac Cash Loans for Affordable Housing Preservation

If you're interested in acquiring or refinancing an affordable housing property, Freddie Mac's Cash Loan for Affordable Housing Preservation could be the perfect choice. These loans offer terms of up to 15 years, amortizations of up to 30 years, LTV allowances of up to 80% of market value, and DSCRs as low as 1.25x. Plus, like many other Freddie Mac Multifamily loans, they support eligible mixed-use properties, and offer both fixed- and floating-rate options. 

Learn More About Cash Loans for Affordable Housing Preservation.

Freddie Mac Tax-Exempt Loans

Investors looking to finance the acquisition, renovation, and refinancing of properties with 4% Low-Income Housing Tax Credits (LIHTC) credits with at least 7 years remaining in the LIHTC compliance period need look no further than the Freddie Mac Tax-Exempt Loan. Offering up to 30-year terms for fixed-rate loans and up to 10-year terms for variable-rate loans and amortizations of up to 30 years, these loans can help borrowers save time and money when compared to traditional bond credit enhancements. Plus, these loans offer up to an 85% LTV allowance for adjusted value and up to 90% LTV allowance for market value for fixed-rate loans, up to 80% LTV for adjusted value, and up to 85% LTV for market value for floating-rate loans. 

Learn more about Freddie Mac Tax-Exempt Loans.

Freddie Mac Flexible Tax-Exempt Loans 

Freddie Mac's Tax-Exempt Loan is a great way to finance the acquisition, renovation, and refinancing of properties with 4% Low-Income Housing Tax Credits (LIHTC) credits. But, if you're an investor or developer looking for a little more wiggle room, a Freddie Mac Flexible Tax-Exempt Loan could be an even better choice. Freddie Mac Flexible Tax-Exempt Loans have a 3-year, floating-rate, interest-only period, followed by a fixed-rate period of up to 15 years, with an overall maximum loan term of 18 years.  

Learn more about Freddie Mac Flexible Tax-Exempt Loans.

Freddie Mac NOAH Preservation Loans

For nonprofits focused on preserving America's supply of affordable housing, there's no better form of financing than the Freddie Mac NOAH Preservation Loan. NOAH Preservation Loans are designed to help eligible nonprofit organizations acquire Naturally Occurring Affordable Housing (NOAH) properties in order to keep rents at a specific percentage of the Area Median Income (AMI). To do so, these loans have LTV allowances of up to 80% and permit DSCRs as low as 1.20x, with flexible loan terms up to 15 years and flexible amortizations up to 30 years. 

Learn more about Freddie Mac NOAH Preservation Loans.

Freddie Mac Impact Gap Financing 

While Freddie Mac NOAH Preservation Loans are one of the best ways for nonprofits to acquire Naturally Occurring Affordable Housing (NOAH) properties in order to limit rent growth, they don't always provide 100% of the financing that nonprofits need —especially for properties looking to undergo moderate renovations. To fix that, many nonprofits are now pairing their NOAH Preservation Loans with Freddie Mac Impact Gap Financing at origination, which allows combined LTCs of up to 97% and DSCRs as low as 1.05x. This form of financing allows private Impact Investors to use Freddie Mac's highly efficient infrastructure to invest in affordable housing, increasing the amount of funds nonprofits can use to preserve and upgrade NOAH properties. 

Learn more about Freddie Mac Impact Gap Financing.

Freddie Mac TAH Express Loans

If you're an investor or developer looking to finance a Targeted Affordable Housing (TAH) property with a loan of $10 million or less, the Freddie Mac TAH Express Loan might just be the perfect fit. TAH Express Loans offer LTVs of up to 80%, DSCRs as low as 1.20x, and eight different fixed and variable-rate loan options, with a variety of partial and full-term interest-only loan options also available. Plus, Freddie Mac TAH Express Loans have a streamlined underwriting process, which can help borrowers save time and money while cutting down on excess paperwork. 

Learn more about Freddie Mac TAH Express Loans.

Freddie Mac Targeted Affordable Mezzanine Loans 

10-year Freddie Mac Targeted Affordable Housing (TAH) Loans can be a fantastic way to purchase or refinance an affordable housing development. However, if you're a developer looking for additional funds for your acquisition or refinance transaction, you may want to combine your 10-year Freddie Mac TAH Loan with a Freddie Mac Targeted Affordable Mezzanine Loan. These two loans can be originated at the same time, cutting down on paperwork and other hassles, and allowing borrowers access combined LTVs of up to 90% and combined DSCRs as low as 1.05x. 

Learn more about targeted affordable mezzanine loans.

Freddie Mac Bond Credit Enhancement with 4% LIHTC 

Investors and developers interested in building, renovating, acquiring, or refinancing properties with LIHTC credits should take a close look at Freddie Mac's Bond Credit Enhancement with 4% LIHTC, a program specifically designed to reduce costs for LIHTC borrowers. This Freddie Mac Bond Credit Enhancement program provides forward commitments for to-be-built or substantially renovated properties, immediate funding for LIHTC properties that can maintain 90% occupancy for 90 days, and preservation rehabilitation financing for properties undergoing moderate rehabilitation with tenants in place. Plus, this program has both fixed and variable-rate options, supports eligible mixed-use properties and can support DSCRs as low as 1.15x. 

Learn more about Freddie Mac's Bond Credit Enhancement with 4% LIHTC.

Freddie Mac Bond Credit Enhancement with Other Affordability Components 

If you're an investor or developer interested in acquiring a non-LIHTC affordable property with tax-exempt bonds, or refunding or substituting tax-exempt bonds for a non-LIHTC affordable property, Freddie Mac's Bond Credit Enhancement with Other Affordability Components could be a great option. This type of Freddie Mac bond credit enhancement allows LTVs of up to 90% for fixed-rate bonds and up to 85% for variable rate bonds, with DSCRs as low as 1.25x. Plus, this form of bond enhancement financing has flexible terms of between 10 and 30 years, with amortizations of up to 30 years, is non-recourse, and supports eligible mixed-use properties. 

Learn more about bond credit enhancement with other affordability components.

Freddie Mac LIHTC Enhancement 

LIHTC investors often put a lot of skin in the game, and accordingly, Freddie Mac has designed a product that can provide them an additional degree of protection: the Freddie Mac LIHTC Enhancement. LIHTC Enhancements are specifically designed for properties being financed with Freddie Mac Bond Credit Enhancements, Freddie Mac Tax-Exempt Loans (TELs), or Freddie TAH Cash Loans. LIHTC Enhancements can protect LIHTC investors if a foreclosure occurs by providing a make-whole payment based on the investor's original investment. LIHTC Enhancements, which are intended for use by experienced borrowers with mixed-income properties, require a quarterly fee paid to Freddie Mac and are valid for 10-year terms. 

Learn more about Freddie Mac LIHTC enhancements.

Freddie Mac Preservation Rehabilitation Financing

If you're an investor interested in acquiring or refinancing an LIHTC property that needs moderate renovations, Freddie Mac's Preservation Rehabilitation Financing could be a great choice. Preservation Rehabilitation Financing is designed for properties using Bond Credit Enhancements with 4% LIHTC, Tax-Exempt Loans with 4% LIHTC, and 9% LIHTC Cash Loans, and can support LTVs as high as 90% of a property's market value, giving it the financial flexibility that many investors and developers need.

Learn more about Freddie Mac preservation rehabilitation financing.

Freddie Mac Tax-Exempt Bond Securitization (TEBS)

Freddie Mac's Tax-Exempt Bond Securitization (TEBS) program allows investors such as seller/servicers or financial institutions with $100 million or more of multifamily affordable housing bonds to exchange them for Freddie Mac Rated M-class Certificates. By transferring their unrated bonds to Freddie Mac, the investor will receive Freddie Mac senior Class-A M Certificates, which are are typically sold to other investors, and Subordinate Class-B M Certificates, which are typically retained by the Sponsor. This helps Investor/Sponsors effectively reduce their risk, increase the profitability of their bond investments, improve their balance sheet management, and, perhaps most importantly, sell their bonds to outside investors. 

Learn more about Freddie Mac Tax-Exempt Bond Securitization.

Freddie Mac Seniors Housing Loans

If you're an investor or developer interested in expanding America's supply of affordable senior housing, a Freddie Mac Seniors Housing Loan could be a fantastic choice. Seniors Housing Loans allow for the acquisition and refinancing of Independent Living (IL), Assisted Living (AL), Skilled Nursing (SN), and Memory Care properties, giving them a high degree of versatility for borrowers. Plus, these loans have terms of between 5 and 30 years with fixed- and variable-rate options, are non-recourse, and permit LTVs up to 75%.

Click the link below to learn more, or click here to download our easy-to-read Freddie Mac Seniors Housing Loan term sheet.

Learn more about Freddie Mac Seniors Housing Loans.

Freddie Mac 9% LIHTC Cash Loans

Freddie Mac's 9% LIHTC Cash Loan is a great source of financing for investors and developers planning on building, purchasing, refinancing, or renovating a 9% LIHTC property. These loans, which have a maximum LTV allowance of up to 90% of a property's market value, are available for forward commitments, immediate funding, and preservation rehabilitation financing. Plus, 9% LIHTC Cash Loans have amortizations of up to 35 years and are available for eligible mixed-use properties.

Learn more about Freddie Mac 9% LIHTC Cash Loans.

Freddie Mac Variable Liquidity Pricing 

Investors and financial institutions looking for a liquidity facility for tax-exempt bonds need look no further than Freddie Mac's Variable Liquidity Pricing program. This liquidity facility is specifically intended for Tax-Exempt Bond Securitization (TEBS) transactions and retail bond credit enhancements (immediate funding and forwards). Plus, the facility has a 5-year fixed-rate component and a variable-rate component that resets every 90 days, and supports eligible mixed-use properties. 

Learn more about the Freddie Mac Variable Liquidity Pricing program.

Freddie Mac FRED Execution

Freddie Mac's FRED loan execution, which streamlines the Freddie Mac Multifamily loan approval process for Conventional Loans and Targeted Affordable Housing (TAH) Loans under $15 million, can help investors and developers save serious time and money. FRED, which stands for fast, reliable, easy decisions, was rolled out to all qualifying Freddie Mac Multifamily loans in Oct. 2018. The FRED program allows borrowers to get one Physical Risk Report, instead of individual engineering and environmental reports, eliminates the need for zoning reports, and reduces special purpose entity (SPE) requirements, among other benefits. 

Learn more about Freddie Mac FRED Execution.

In this article:

1. Sample Freddie Mac Terms For Apartment Loans in 2024
2. Advantages
3. Disadvantages
4. Freddie Mac Fixed-Rate Conventional Loans
5. Freddie Mac Float-to-Fixed-Rate Loans (Two-Plus-Seven) 
6. Freddie Mac Floating-Rate Loans 
7. Freddie Mac HUD Section 8 Financing 
8. Freddie Mac Manufactured Housing Community Loan
9. Manufactured Housing Resident Owned Community Loans
10. Freddie Mac Student Housing Loans
11. Freddie Mac Green Advantage
12. Freddie Mac Lease-Up Loans
13. Freddie Mac Moderate Rehab Loans 
14. Freddie Mac Revolving Credit Facility 
15. Freddie Mac Single-Sponsor Execution
16. Freddie Mac Student Housing Value-Add Loan
17. Freddie Mac Supplemental Loans
18. Freddie Mac Value-Add Loans
19. Freddie Mac Workforce Housing Mezzanine Loans
20. Freddie Mac Small Balance Loans
21. Freddie Mac Bridge to Resyndication 
22. Freddie Mac Cash Loans for Affordable Housing Preservation
23. Freddie Mac Tax-Exempt Loans
24. Freddie Mac Flexible Tax-Exempt Loans 
25. Freddie Mac NOAH Preservation Loans
26. Freddie Mac Impact Gap Financing 
27. Freddie Mac TAH Express Loans
28. Freddie Mac Targeted Affordable Mezzanine Loans 
29. Freddie Mac Bond Credit Enhancement with 4% LIHTC 
30. Freddie Mac Bond Credit Enhancement with Other Affordability Components 
31. Freddie Mac LIHTC Enhancement 
32. Freddie Mac Preservation Rehabilitation Financing
33. Freddie Mac Tax-Exempt Bond Securitization (TEBS)
34. Freddie Mac Seniors Housing Loans
35. Freddie Mac 9% LIHTC Cash Loans
36. Freddie Mac Variable Liquidity Pricing 
37. Freddie Mac FRED Execution
38. Get Financing