Freddie Mac Preservation Rehabilitation 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

The Freddie Mac Preservation Rehabilitation Multifamily Loans program provides investors with a great financing solution to renovate affordable housing properties with low income housing tax credits. This product can be used with bond credit enhancements with 4% LIHTC, tax-exempt loans with 4% LIHTC and 9% LIHTC cash loans. These loans offer terms of up to 15 years, amortizations up to 30 years, LTV up to 80% of market value, and DSCRs as low as 1.25x.


Freddie Mac Preservation Rehabilitation Multifamily Loan Highlights

Product Description:

  • Tax-Exempt Financing with 4% LIHTC: Provides investors with tax-exempt financing in order to moderately rehabilitate affordable multifamily properties with a new 4% LIHTC and tenants in place
  • Tax-Exempt Financing with 9% LIHTC: Provides investors with tax-exempt financing in order to moderately rehabilitate affordable multifamily properties with a new 9% LIHTC and tenants in place

 

Eligible Property Types:

  • Tax-Exempt Financing with 4% LIHTC: Must be either garden, mid-rise, or high-rise multifamily properties. Must have 4% Low-Income Housing Tax Credits and be undergoing moderate rehabilitation with tenants in place
  • Tax-Exempt Financing with 9% LIHTC: Must be either garden, mid-rise, or high-rise multifamily properties. Must have 4% Low-Income Housing Tax Credits and be undergoing moderate rehabilitation with tenants in place

 

Funding Type: Provides investor with tax-exempt financing for the acquisition and rehabilitation of multifamily properties based on projected post-rehabilitation net operating income

 

Terms:

  • Minimum term: Lesser of the remaining LIHTC compliance period or 15 years; 15 years with HUD Risk Sharing
  • Maximum term: 35 years
  • A maximum of 2 years for rehabilitation and stabilization period will be included in loan term

 

Amortization: Up to 35 years

 

LTV:

  • Tax-Exempt Financing with 4% LIHTC:
    • Variable rate with cap hedge: 80% of adjusted value or 85% of market value
    • Fixed rate: 85% of adjusted value or 90% of market value
  • Tax-Exempt Financing with 9% LIHTC: 90% of market value

 

DSCR:

  • Tax-Exempt Financing with 4% LIHTC:
    • Variable rate with cap hedge: 1.20x
    • Fixed rate: 1.15x
  • Tax-Exempt Financing with 9% LIHTC: 1.15x

 

Prepayment Penalty:

  • Tax-exempt Financing with 4% LIHTC- Fee maintenance
  • Tax-exempt Financing with 9% LIHTC- Yield maintenance

 

Other Terms:

  • Subordinate financing is permitted
  • Escrows for taxes and insurance are required

 

 





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