FREDDIE MAC

Loan Amount

$5 – $100 million; smaller and larger loans will be considered

Term

5- to 10-year terms

Loan-to-value (LTV)

5- to 7-year term: 75%
7-year term or greater: 80%

Rate Lock

Early rate-lock options available for varying durations, typically ranging from 60 to 120 days until Freddie Mac purchase; Index lock option is also available

Purpose

Acquisition or Refinance

Pricing

Tiered pricing based on DSCR and LTV

Amortizing DSCR

1.25x for most markets (can reduce to 1.20x for certain markets)

Amortization

Max: 30 years; Partial and Full-Term IO available depending on LTV and DSCR
Floating Rate Option: available priced over SOFR; 1-year lock-out, prepayable thereafter with 1% fee

Recourse

Non-recourse except for standard carve-outs

Prepayment

Yield maintenance until securitized followed by 2-year lock-out, defeasance thereafter. No prepayment premium for final 90 days. If loan is not securitized within first year, then yield maintenance applies until the final 90 days. Yield maintenance without defeasance is available for securitized loans at an additional cost.

Property Types

Standard Multifamily, Student Housing, Manufactured Housing Communities, Cooperative Housing and Targeted Affordable Housing

Eligible Borrower

May be LP, S/C-Corp, LIC, or TIC with 10 or fewer tenants in common. GPs, LLPs, REITs and certain trusts may also be acceptable in limited circumstances, subject to additional requirements. Borrower must usually be a Single Purpose Entity (SPE), however, on loans less than $5 million, upon borrower's request, a borrower other than a TIC may be a Single Asset Entity instead of an SPE. If the borrower is structured as a TIC, each tenant in common must be an SPE.