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

Our Multifamily Loan Benefits

Multifamily Loan rates start as low as 2.54% (as of July 27th, 2021)
• No upfront application or processing fees
• Simplified application process
• Financing up to 80% LTV
• Terms and amortizations up to 30 years
• Long term fixed rates
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation

Freddie Mac Multifamily Loan

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

 





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