Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Freddie Mac Optigo Program
Freddie Mac Lease-Up Loan
The Freddie Mac Lease-Up 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 Lease-Up Loan
Recourse: Non-recourse with industry standard carveouts for “bad boy” acts
Eligible Borrowers: Freddie Mac requires that have experience owning and managing new construction or lease-up properties. In addition, borrowers should be in strong financial standing, and have real estate management expertise with good performance and credit history Eligible Property Types:
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Program Highlights & Terms
- Loan Types: Offers both fixed and floating rate loans; Interest-only (I/O) is available for the duration of the lease-up period
- Terms: 5-10 years
- Amortization: 30 years
- Maximum LTV: Refinance Lease Up Acquisition Lease Up Conventional and Targeted Affordable- 75% LTV; Seniors Housing with Independent Living and/or Assisted Living- 70% LTV; Conventional and Targeted Affordable- 70% LTV; Seniors Housing with Independent Living and/or Assisted Living- 70% LTV
- Minimum DSCR: Refinance Lease Up Acquisition Lease Up Conventional and Targeted Affordable- 1.30x DSCR; Seniors Housing with Independent Living- 1.35x DSCR; Seniors Housing with Assisted Living- 1.45x DSCR; Conventional and Targeted Affordable- 1.35x DSCR; Seniors Housing with Independent Living - 1.35x DSCR; Seniors Housing with Assisted Living- 1.35x DSCR
- Minimum Cash Equity Requirement: Refinance Lease Up Acquisition Lease Up Conventional and Targeted Affordable- 15%; Seniors Housing with Independent Living and/or Assisted Living- 20%; Conventional and Targeted Affordable- 25%; Seniors Housing with Independent Living and/or Assisted Living- 25%
- Recourse: Non-recourse with industry standard carveouts for “bad boy” acts
- Eligible Borrowers: Freddie Mac requires that have experience owning and managing new construction or lease-up properties. In addition, borrowers should be in strong financial standing, and have real estate management expertise with good performance and credit history
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