Freddie Mac Green Advantage Loans

Our Multifamily Loan Benefits

Multifamily Loan rates start as low as 5.48% (as of May 22nd, 2024)
• A commercial mortgage broker with over 30 years of lending experience
• 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 thinking about applying for a Freddie Mac multifamily loan for a conventional, seniors, or targeted affordable housing property? If so, you should definitely know that you could receive better terms and rates through the Freddie Mac Green Advantage Loans program. Essentially, Freddie Mac rewards investors who get a Green Assessment and commit to reducing their building's water and sewage usage by 30%. Investors who qualify and “go green” have the ability to receive higher leverage loans with lower interest rates and debt service coverage requirements. In addition, Freddie Mac will even reimburse investors up to $3,500 at closing for the costs of their energy assessment.

Freddie Mac Green Advantage Loan Highlights

Eligible Loan Terms: 7 and 10 year fixed rate terms

Eligible Properties:

  • At least 50% of the rents must be deemed affordable at workforce housing levels based on the market
  • 80% Area Median Income (AMI) in standard markets
  • 100% AMI in cost-burdened renter markets
  • 120% AMI in very cost-burdened renter markets
  • 150% AMI in extremely cost-burdened renter markets

Consumption Reduction:

  • Green Up: Must have a reduction of at least 30% of energy or water/sewer (with a minimum of 15% from energy) consumption based on Green Assessment
  • Green Up Plus: Must have a reduction of at least 30% of energy or water/sewer (with a minimum of 15% from energy) consumption based on Green Assessment Plus


Time to Complete Improvements: 2 years

Loan Proceeds and Sizing:

  • Debt Service Coverage Ratio (DSCR): -0.05x of policy-compliant DSCR. Subject to lesser of 1.20x or program/product limit
  • Loan-to-Value (LTV) ratio: +5.0% of policy-compliant LTV. Subject to greater of 85% or program/product limit

Escrows: Borrower must escrow funds for energy/water efficiency work at closing. Amount escrowed will be 125% of cost and will be released as work is completed

Other Considerations:

  • These programs require third party reports. Green Up requires a Green Assessment and Green Up Plus requires a Green Assessment Plus
  • Third party reports can cost up to $3,500 and borrower will be reimbursed at loan closing
  • Green Up and Green Up Plus loans require that borrowers engage with a third-party data collection company, prior to the origination of the loan. The purpose of this company is to collect, input and monitor actual energy and water usage through the term of the loan.



Are you already green? Freddie Mac provides borrowers with discounted loan pricing for both 7- and 10-year fixed-rate loans if at least half of the property’s units are affordable and the property has one of the following eight green building certifications:

1. EarthCraft, Greater Atlanta Home Builders Association & South Face
2. ENERGY STAR® for Multifamily, EPA
3. ENERGY STAR® for Qualified Multifamily High-Rise, EPA
4. Green Communities, Enterprise Community Partners
5. Green Globes, Green Building Initiative
6. GreenPoint Rated, Build It Green
7. LEED, US Green Building Council
8. National Green Building Standard (NGBS), Home Innovation Research Labs


Investors can still receive a green rebate even without one of the Green Advantage Options. Borrowers can receive $5000 from Freddie Mac for delivering an EPA ENERGY STAR Score


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