Freddie Mac 9% Low Income Housing Tax Credits Cash Multifamily Loans

Are you looking to purchase, refinance or substantially renovate an affordable property with 9% Low-Income Housing Tax Credits? If so, you’ll definitely want to take a look at the Freddie Mac 9% Low Income Housing Tax Credits Cash Multifamily Loans program. This program is incredibly flexible and can serve a wide array of purposes for different borrowers. The program offers forward commitments, immediate financing and preservation rehabilitation financing. With terms such as a maximum of 90% LTV and DSCR’s as low as 1.15x, this program is the perfect option for investors in affordable housing properties

Freddie Mac 9% Low Income Housing Tax Credits Cash Multifamily Loan Highlights

Product Description:

• Forward Commitment: Provides investors with forward commitments to construct or substantially rehabilitate affordable multifamily properties with 9% low income housing income housing credits
• Immediate Funding: Provides borrowers with funding for the acquisition or refinance of stabilized affordable multifamily properties with 9% LIHTC. Properties must have a minimum of 7 years remaining in the LIHTC period.
• Preservation Rehabilitation: Provides borrowers with funding for the moderate rehabilitation of affordable multifamily properties with new 9% LIHTC and tenants in place

Terms:

Forward Commitment/ Immediate Funding: Minimum term of the lesser of the remaining LIHTC compliance period or 15 years and Maximum term of 35 years

Preservation Rehabilitation: Minimum term of the lesser of the remaining LIHTC compliance period or 15 years and Maximum term of 35 years. Maximum of 2 years for rehabilitation and stabilization will be included in the loan term

Amortization: Up to 35 years

Loan to Value: 90% LTV

DSCR: 1.15x

Eligible Property Types:

• Forward Commitment: Garden, midrise, or high-rise multifamily buildings with 9% low- income housing tax credits that are going to be constructed or significantly renovated
• Immediate Funding: Garden, mid-rise, or high-rise multifamily properties with 9% low-income housing tax credits that maintain occupancy levels of 90% for at least 90 days
• Preservation Rehabilitation: Garden, mid-rise, or high-rise multifamily buildings with 9% low-income housing tax credits that require moderate rehabilitation and have tenants in place

Type of Funding:

• Forward Commitment: Offers investors a bond credit enhancement during construction. Also offers forward commitment to provide bond credit enhancement when the project moves from construction phase to permanent phase
• Immediate Funding: Permanent financing
• Preservation Rehabilitation: Financing for both the acquisition and rehabilitation based on projected post-rehabilitation net operating income. Maximum rehab period is 2 years. Loans are interest only during the rehabilitation and stabilization period

Prepayment Penalty: Yield Maintenance

Other Terms:

• Escrows for taxes and insurance are required
• Securitization is only available for immediate financing