Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Freddie Mac Optigo Program
Freddie Mac HUD Section 8 Financing
The Freddie Mac HUD Section 8 Financing 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 HUD Section 8 Financing
Term: Cash Loans- 5 year minimum, 15 year maximum Tax Exempt Financing- 10 year minimum, 30 year maximum
Subordinate Financing: Permitted, providing it meets additional requirements and analysis
Eligible Borrowers: Must have demonstrated experience in owning and managing similar Section 8 properties
Program Highlights & Terms
- Size: Varies
- Term: Cash Loans- 5 year minimum, 15 year maximum
- Amortization: Cash Loan- Up to 30 years Tax Exempt Financing- Up to 35 years
- Maximum LTV: Cash Loans- 80%
- Tax Exempt Financing: 90%
- Prepayment Penalty: Cash Loans- Defeasance
- Tax Exempt Financing: Yield Maintenance
- Subordinate Financing: Permitted, providing it meets additional requirements and analysis
- Tax and Insurance Escrows: Required
- Eligible Borrowers: Must have demonstrated experience in owning and managing similar Section 8 properties
- Eligible Properties: Garden, mid-rise, or high-rise apartment buildings and complexes with Section 8 project-based contracts or vouchers
- Other Terms: For the purposes of Freddie Mac underwriting, the Section 8 subsidy is classified as one of the following: Long-term Section 8 contract- can either be a brand new 20-year contract or an existing contract that has a remaining term length equal to or greater than the term of the loan; Short-term Section 8 contract- has a remaining term of less than the term of the mortgage
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
No cost, no obligation. Written answers within 48 hours on multifamily loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up