Freddie Mac Cash Financing for 9% LIHTC Properties 

Freddie Mac Cash Loans for the Preservation or Rehabilitation of Affordable Properties with 9% Low-Income Housing Tax Credits (LIHTCs) 

If you're interested in a building, acquiring, or substantially renovating an affordable property with 9% Low-Income Housing Tax Credits (LIHTCs), then you'll definitely want to take a look at the Freddie Mac 9% LIHTC Cash Loan. 9% LIHTC Cash Loans are available for forward commitments, immediate fundings, and preservation rehabilitation financing, giving LIHTC developers and investors a wide degree of versatility and flexibility. These loans permit LTVs of up to 90% of a property's market value, have DSCRs of as low as 1.15x, and amortizations of up to 35 years. Plus, like many other kinds of Freddie Mac Multifamily products, 9% LIHTC Cash Loans support eligible mixed-use properties.

To learn more, check out Freddie Mac’s official 9% LIHTC Cash Loan Product Sheet or keep reading below for an in-depth explanation of the 9% LIHTC Cash Loan program.

Sample Freddie Mac Terms For 9% LIHTC Cash Loans

Size:  Varies based on LTV and DSCR requirements. 


  • Forward commitment: Funded or unfunded construction forward commitment for the new construction or substantial rehab of affordable developments with 9% LIHTC.

  • Immediate funding: Permanent financing for acquisitions and refinances of stabilized affordable developments with 9% LIHTC. Must have 7+ years left in the LIHTC compliance period.

  • Preservation rehabilitation: Financing for the moderate rehab of affordable properties with new 9% LIHTCs and tenants in place. Loans require cash or a letter of credit collateral in order to fund the gap between the supportable debt (based on current net operating income) and actual mortgage amount. Loans are interest-only during max. 24-month rehab period.


  • Minimum term: Remaining LIHTC compliance period or 15 years, whichever is less; 15 years with HUD Risk Sharing

  • Maximum term: 35 years; rehabilitation/stabilization period (maximum of 24 months) will be included in loan term

Construction Loan Term:  Maximum forward commitment of 36 months, with a free 6- month extension

Amortization:  Up to 35 years 

Interest Rate:  Fixed and floating-rate options available 

Interest-Rate Caps:  Required 

Maximum LTV: 90% of market value

Minimum DSCR:  1.15x

Eligible Properties:  

  • Forward commitment: Not-yet-built or substantially renovated garden, mid-rise or high-rise affordable properties with 9% Low-Income Housing Tax Credit (LIHTC).

  • Immediate funding: Garden, mid-rise, or high-rise affordable properties with 9% LIHTC (must have at least 90% occupancy for 90 days.)

  • Preservation rehabilitation: Garden, mid-rise or high-rise affordable properties with 9% LIHTC that are undergoing moderate renovations with tenants in place.

Prepayment Penalty:  Yield maintenance


  • LTVs of up to 90% market value supported

  • Eligible mixed-use properties supported

  • Early rate locks and index locks available for immediate funding


  • Requires application fees, commitment fees, Delivery Assurance Fees, and other fees

  • Early rate-locks not available for forward commitments and preservation rehabilitation finning