Freddie Mac Seasoned Loan Pool Credit Enhancement 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 Seasoned Loan Pool Credit Enhancement program provides flexible and cost-effective financing options for small financial institutions looking to achieve a loss sharing arrangement with Freddie Mac. This program provides loss sharing options to small financial institutions so they can continue to grow and support affordable housing. Freddie Mac will underwrite the entire pool of seasoned loans and then offer credit protection for a senior position in the loan pool.


Freddie Mac Seasoned Loan Pool Credit Enhancement Loan Highlights

Eligible Customer: Must be either a small financial institution or community bank that has less than $10 billion in assets

 

Pool Size: $100 million or greater UPB

 

Collateral: Pool must contain small balance multifamily loans and loans secured by apartment buildings with 9% LIHTC. These loans must have been originated at least one year before the transaction closing date

 

Structure: Freddie Mac offers flexible structure by customizing the level of credit support for each pool

 

First-Loss: Customer must maintain a first-loss position in the loan pool

 

Freddie Mac Guarantee: Through this program, Freddie Mac enters into an agreement in which they will accept responsibility for a senior tranche of credit risk of a particular loan pool. While loans must remain on the customers balance sheet, the credit risk is shared between the customer and Freddie Mac

LTV:

  • Loans below $1 million have allowance of 60% LTV
  • Loans above $1 million have allowance of 80% LTV

DSCR:

  • Loans below $1 million must meet DSCR of 1.50x
  • Loans above $1 million must meet DSCR of 1.20x

 

Term: Open to any loan term

 

Amortization: 30 years

 





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