Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Freddie Mac Optigo Program
Freddie Mac Tax-Exempt Loan
The Freddie Mac Tax-Exempt 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 Tax-Exempt Loan
Product Description: Multifamily financing to either acquire or refinance of stabilized and affordable apartment buildings. Must have 4% Low-Income Housing Tax Credits (LIHTC) and at least 7 more years in the LIHTC compliance period
Type of Funding: Offers both immediate fixed-rate financing and forward fixed-rate financing
Eligible Properties: Garden, mid-rise or high-rise multifamily properties with 4% LIHTC
Program Highlights & Terms
- Product Description: Multifamily financing to either acquire or refinance of stabilized and affordable apartment buildings. Must have 4% Low-Income Housing Tax Credits (LIHTC) and at least 7 more years in the LIHTC compliance period
- Type of Funding: Offers both immediate fixed-rate financing and forward fixed-rate financing
- Eligible Properties: Garden, mid-rise or high-rise multifamily properties with 4% LIHTC
- Occupancy: Minimum of 90% occupancy for 90 days
- Collateral: First-lien mortgages of conventional, seniors housing or student housing properties
- Term: Up to 30 years
- Construction Loan Term: Up to 36 months
- Amortization: Up to 35 years
- LTV: Maximum of 85% of adjusted value or 90% of market value
- DSCR: : Minimum of 1.15x
- Prepayment Penalty: Yield Maintenance. Minimum of 10 years’ prepayment protection Other Terms: Get Free Fredie Mac Loan Quote Subordinate financing is available; Supplemental loans are available; Escrows for taxes and insurance are required; Transactions will be priced at a spread to 10-year Treasuries
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