Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Freddie Mac Optigo Program
Freddie Mac Preservation Rehabilitation Loan
The Freddie Mac Preservation Rehabilitation 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 Preservation Rehabilitation Loan
Funding Type: Provides investor with tax-exempt financing for the acquisition and rehabilitation of multifamily properties based on projected post-rehabilitation net operating income
A three year journey "Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"
Program Highlights & Terms
- Product Description: Tax-Exempt Financing with 4% LIHTC: Provides investors with tax-exempt financing in order to moderately rehabilitate affordable multifamily properties with a new 4% LIHTC and tenants in place; Tax-Exempt Financing with 9% LIHTC: Provides investors with tax-exempt financing in order to moderately rehabilitate affordable multifamily properties with a new 9% LIHTC and tenants in place
- Funding Type: Provides investor with tax-exempt financing for the acquisition and rehabilitation of multifamily properties based on projected post-rehabilitation net operating income
- Terms: Minimum term: Lesser of the remaining LIHTC compliance period or 15 years; 15 years with HUD Risk Sharing; Maximum term: 35 years; A maximum of 2 years for rehabilitation and stabilization period will be included in loan term
- Amortization: Up to 35 years
- LTV: Tax-Exempt Financing with 4% LIHTC:; 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; Tax-Exempt Financing with 9% LIHTC: 90% of market value
- DSCR: Tax-Exempt Financing with 4% LIHTC:; Variable rate with cap hedge: 1.20x; Fixed rate: 1.15x; Tax-Exempt Financing with 9% LIHTC: 1.15x
- Prepayment Penalty: Tax-exempt Financing with 4% LIHTC- Fee maintenance; Tax-exempt Financing with 9% LIHTC- Yield maintenance
- Other Terms: Get Free Fredie Mac Loan Quote Subordinate financing is permitted; Escrows for taxes and insurance 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
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