Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Freddie Mac Optigo Program
Freddie Mac Green Advantage Loan
The Freddie Mac Green Advantage Loan 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 Green Advantage Loan
Escrows: Borrower must escrow funds for energy/water efficiency work at closing. Amount escrowed will be 125% of cost and will be released as work is completed
Are you already green? Freddie Mac provides borrowers with discounted loan pricing for both 7- and 10-year fixed-rate loans if at least half of the property’s units are affordable and the property has one of the following eight green building certifications:
1. EarthCraft, Greater Atlanta Home Builders Association & South Face 2. ENERGY STAR® for Multifamily, EPA 3. ENERGY STAR® for Qualified Multifamily High-Rise, EPA 4. Green Communities, Enterprise Community Partners 5. Green Globes, Green Building Initiative 6. GreenPoint Rated, Build It Green 7. LEED, US Green Building Council 8. National Green Building Standard (NGBS), Home Innovation Research Labs
Program Highlights & Terms
- Eligible Loan Terms: 7 and 10 year fixed rate terms
- Eligible Properties: At least 50% of the rents must be deemed affordable at workforce housing levels based on the market; 80% Area Median Income (AMI) in standard markets; 100% AMI in cost-burdened renter markets; 120% AMI in very cost-burdened renter markets; 150% AMI in extremely cost-burdened renter markets
- Consumption Reduction: Green Up: Must have a reduction of at least 30% of energy or water/sewer (with a minimum of 15% from energy) consumption based on Green Assessment; Green Up Plus: Must have a reduction of at least 30% of energy or water/sewer (with a minimum of 15% from energy) consumption based on Green Assessment Plus
- Time to Complete Improvements: 2 years
- Loan Proceeds and Sizing: Debt Service Coverage Ratio (DSCR): -0.05x of policy-compliant DSCR. Subject to lesser of 1.20x or program/product limit; Loan-to-Value (LTV) ratio: +5.0% of policy-compliant LTV. Subject to greater of 85% or program/product limit
- Escrows: Borrower must escrow funds for energy/water efficiency work at closing. Amount escrowed will be 125% of cost and will be released as work is completed
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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- For 5+ unit and commercial properties, $1.5M and up