Freddie Mac Lease Up Multifamily Loans

Our Multifamily Loan Benefits

Multifamily Loan rates start as low as 3.01% (as of April 16th, 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 for a multifamily loan to acquire or refinance a newly constructed apartment building? Look no further than the Freddie Mac Lease Up Multifamily Loans program. Freddie Mac Lease-Up Apartment Loans are available for many different multifamily property types including Conventional, Seniors, and Targeted Affordable buildings. Plus, these loans are non-recourse, can finance up 75% LTV, and permit eligible mixed-use properties. This great product allows borrowers to lock in a low interest rate and fund the loan before the property is fully stabilized. Freddie Mac offers fixed- and floating-rate loans to investors with properties in lease up. Additionally, interest-only options are also available during lease-up period.


Freddie Mac Lease Up Multifamily Loan Highlights

Loan Types:

  • Offers both fixed and floating rate loans
  • Interest-only (I/O) is available for the duration of the lease-up period

 

Terms: 5-10 years

Amortization: 30 years

Maximum LTV:

Refinance Lease Up

  • Conventional and Targeted Affordable- 75% LTV
  • Seniors Housing with Independent Living and/or Assisted Living- 70% LTV

Acquisition Lease Up

  • Conventional and Targeted Affordable- 70% LTV
  • Seniors Housing with Independent Living and/or Assisted Living- 70% LTV

 

Minimum DSCR:

Refinance Lease Up

  • Conventional and Targeted Affordable- 1.30x DSCR
  • Seniors Housing with Independent Living- 1.35x DSCR
  • Seniors Housing with Assisted Living- 1.45x DSCR

Acquisition Lease Up

  • Conventional and Targeted Affordable- 1.35x DSCR
  • Seniors Housing with Independent Living – 1.35x DSCR
  • Seniors Housing with Assisted Living- 1.35x DSCR

 

Minimum Cash Equity Requirement:

Refinance Lease Up

  • Conventional and Targeted Affordable- 15%
  • Seniors Housing with Independent Living and/or Assisted Living- 20%

 

Acquisition Lease Up

  • Conventional and Targeted Affordable- 25%
  • Seniors Housing with Independent Living and/or Assisted Living- 25%

 

Recourse: Non-recourse with industry standard carveouts for “bad boy” acts

 

Eligible Borrowers: Freddie Mac requires that have experience owning and managing new construction or lease-up properties. In addition, borrowers should be in strong financial standing, and have real estate management expertise with good performance and credit history

Eligible Property Types:

  • Property should be well constructed and demonstrate strong lease-up trajectory in good locations and strong markets
  • Student housing and manufactured housing community transactions are not eligible
  • Stabilization expected within 12 months of closing

 

Requirements at Closing:

Refinance Lease Up

  • Property must meet a DSCR of 1.05x
  • 65% of all multifamily units must be occupied at closing
  • 75% of all multifamily units must be leased at closing
  • For Conventional and Targeted Affordable properties, 100% of units must have Certificates of Occupancy issued
  • For Seniors Housing with Independent Living and/or Assisted Living, 90% of units must have Certificates of Occupancy issued
  • Assisted Living properties must have all required licenses authorizing operations

 

Acquisition Lease Up

  • Property must meet a DSCR of 1.0x
  • 65% of all multifamily units must be occupied at closing
  • 75% of all multifamily units must be leased at closing
  • For Conventional and Targeted Affordable properties, 100% of units must have Certificates of Occupancy issued
  • For Seniors Housing with Independent Living and/or Assisted Living, 90% of units must have Certificates of Occupancy issued
  • Assisted Living properties must have all required licenses authorizing operations

 





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