Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Freddie Mac Optigo Program
Freddie Mac Tax-Exempt Bond Securitization (TEBS)
The Freddie Mac Tax-Exempt Bond Securitization (TEBS) 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 Bond Securitization (TEBS)
Product Description: The program allows the sponsor to transfer privately placed tax-exempt multifamily housing revenue bonds to Freddie Mac in exchange for:
Subordination Level: Usually about 15% of total pool size. However, the number can vary based on quality of the collateral and sponsor needs
Properties require the following documentation (others may be required as well by Freddie Mac underwriting):
Program Highlights & Terms
- Product Description: The program allows the sponsor to transfer privately placed tax-exempt multifamily housing revenue bonds to Freddie Mac in exchange for: Freddie Mac senior Class-A M Certificates that are typically sold to other investors; Subordinate Class-B M Certificates that are usually kept by the sponsor
- Amount: Typically equal to or greater than $100 million
- Eligible Sponsors: Freddie Mac Multifamily Optigo Targeted Affordable Housing Seller/Servicers; Other well-capitalized financial institutions will be considered on a case-by-case basis
- Eligible Property Types: Multifamily properties
- LTV: Maximum 95% per Freddie Mac underwriting
- DSCR: Minimum 1.05x
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