Freddie Mac combines innovative solutions with expert risk management to purchase and securitize mortgage loans on multifamily rental properties. Whatever you need funding for – an acquisition, renovation, going green, or a supplemental loan – an Optigo lender will help you get the flexible funding solution you want, with the certainty of execution you need.
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Loan Amount: Starting at $6 million to well over $50 million
Fixed-Rate Terms: Choose from a 5-10 year fixed rates
Amortization: 30-years
Maximum LTV: 80% for Conventional properties; other asset classes vary
Minimum DSCR: 1.25x for Conventional properties; other asset classes vary
Eligible Properties: Conventional properties; Multifamily Affordable Housing Properties; Seniors Housing Properties; Student Housing Properties; and Manufactured Housing Communities.
Subordinate Financing: Supplemental mortgages are available
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.
Recourse: Non-recourse execution is available with standard carve-outs for “bad acts” such as fraud and bankruptcy.
Occupancy: Properties must demonstrate a minimum occupancy of 90% for the 90-day period prior to commitment
Escrows: Generally required
Early Rate Locks: Early rate-lock option available for varying durations, typically ranging from 60 to 120 days until Freddie Mac purchase; Index Lock option is also available. Optigo lenders should consult with their regional Freddie Mac representative to determine eligibility.