Freddie Mac Tax-Exempt Multifamily Loans

Our Multifamily Loan Benefits

Multifamily Loan rates start as low as 5.47% (as of February 24th, 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

The Freddie Mac Tax-Exempt Multifamily Loans program (TELs) offers borrowers a cost-effective and efficient solution for those looking for tax-exempt financing. This program helps borrowers save time and money when looking to acquire or refinance affordable multifamily properties with tax-exempt debt. The Freddie Mac TEL is a wonderful alternative to tax-exempt bond credit enhancements with 4% LIHTCs. This program offers immediate funding and forwards and interest-only options. In addition, their streamlined process means less paperwork and expense than traditional bond credit enhancements.

Freddie Mac Tax-Exempt Multifamily Loan Highlights

Product Description: Multifamily financing to either acquire or refinance of stabilized and affordable apartment buildings. Must have 4% Low-Income Housing Tax Credits (LIHTC) and at least 7 more years in the LIHTC compliance period


Type of Funding: Offers both immediate fixed-rate financing and forward fixed-rate financing


Eligible Properties: Garden, mid-rise or high-rise multifamily properties with 4% LIHTC


Occupancy: Minimum of 90% occupancy for 90 days


Collateral: First-lien mortgages of conventional, seniors housing or student housing properties


Term: Up to 30 years


Construction Loan Term: Up to 36 months


Amortization: Up to 35 years


LTV: Maximum of 85% of adjusted value or 90% of market value


DSCR: Minimum of 1.15x


Prepayment Penalty: Yield Maintenance. Minimum of 10 years’ prepayment protection

Other Terms:

  • Subordinate financing is available
  • Supplemental loans are available
  • Escrows for taxes and insurance are required
  • Transactions will be priced at a spread to 10-year Treasuries



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