Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Freddie Mac Optigo Program
Freddie Mac Supplemental Loan
The Freddie Mac Supplemental 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 Supplemental Loan
Terms: Supplemental loan must be coterminous with the first loan and must be at least 12 months after origination of the first loan or the most recent prior to the supplemental loan. Supplemental Loan is not available during the final 3 years of the first loan
Recourse Requirements: Non-recourse except for industry standard “bad boy” carve-outs
Eligible Borrowers: Current Freddie Mac Multifamily borrowers with existing loans
Program Highlights & Terms
- Size: Minimum of $1,500,000 (subject to LTV and DSCR restrictions)
- Use: Supplemental financing for current Freddie Mac borrowers
- Terms: Supplemental loan must be coterminous with the first loan and must be at least 12 months after origination of the first loan or the most recent prior to the supplemental loan. Supplemental Loan is not available during the final 3 years of the first loan
- 5 Year Loan: Amortizing: 75% LTV; Partial Term Interest-Only: 75% LTV; Full Term Interest-Only: 65% LTV
- 7 Year Loan: Amortizing: 80% LTV; Partial Term Interest-Only: 80% LTV; Full Term Interest-Only: 70% LTV
- 10 Year Loan: Amortizing: 80% LTV; Partial Term Interest-Only: 80% LTV; Full Term Interest-Only: 70% LTV
- 5 Year Loan: Amortizing: 1.30% DSCR; Partial Term Interest-Only: 1.30% DSCR; Full Term Interest-Only: 1.40% DSCR
- 7 Year Loan: Amortizing: 1.25% DSCR; Partial Term Interest-Only: 1.25% DSCR; Full Term Interest-Only: 1.30% DSCR
- 10 Year Loan: Amortizing: 1.25% DSCR; Partial Term Interest-Only: 1.25% DSCR; Full Term Interest-Only: 1.35% DSCR
- Recourse Requirements: Non-recourse except for industry standard “bad boy” carve-outs
- Eligible Borrowers: Current Freddie Mac Multifamily borrowers with existing loans
- Eligible Properties: Property must be in current good standing and have been purchased through one of the
- following programs: Conventional Cash Mortgage Purchase program; Targeted Affordable Housing Cash Mortgage Purchase program; Seniors Housing Cash Mortgage Purchase program; Conventional Structured Transactions
- Prepayment Penalty: Yield Maintenance Get Free Fredie Mac Loan Quote
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