Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Freddie Mac Optigo Program
Freddie Mac Bond Credit Enhancement with Other Affordability Components
The Freddie Mac Bond Credit Enhancement with Other Affordability Components is one of the Freddie Mac multifamily (Optigo) programs Select Commercial arranges nationwide. Its highlights and terms are below, and you can compare it on our Freddie Mac multifamily page or view today’s commercial mortgage rates.
Get a Free QuoteAbout the Bond Credit Enhancement with Other Affordability Components
Use: Offers both new credit enhancement facility and replacement of existing credit enhancement facility. Eligible for tax-exempt bonds for refundings, substitutions and acquisitions
Eligible Property Types: Garden, mid-rise and high-rise apartment buildings
Recourse: Non-recourse except for standard carveouts for “bad boy” acts
Program Highlights & Terms
- Use: Offers both new credit enhancement facility and replacement of existing credit enhancement facility. Eligible for tax-exempt bonds for refundings, substitutions and acquisitions
- Terms: 10 to 30 years
- Amortization: Up to 30 years
- LTV: 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
- DSCR: Variable-rate with cap hedge: 1.25x; Fixed-rate: 1.25x
- Eligible Property Types: Garden, mid-rise and high-rise apartment buildings
- Occupancy: Must have occupancy of at least 90% for 90 days
- Prepayment Penalty: Fee maintenance
- Recourse: Non-recourse except for standard carveouts for “bad boy” acts
- Other Terms: Get Free Fredie Mac Loan Quote Subordinate debt is permitted; Escrows for taxes and insurance are required; Appraisal, environmental and engineering reports are required
Terms are indicative and set by Freddie Mac underwriting for your specific property.
What Our Clients Say
“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“I found selectcommercial.com and saw they specialized in apartment building loans. In the end, they were by far the best company I have used. Next time I know who to call first.”
Jerry T. · Long Island, NY“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York CityGet Your Freddie Mac Quote
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- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up