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Last updated on Jan 3, 2023
2 min read

Freddie Mac Cash Loans for Affordable Housing Preservation

Freddie Mac Cash Loans for Affordable Housing Preservation are designed to help borrowers purchase or refinance affordable housing properties. They have terms of up to 15 years, amortizations up to 30 years, LTVs up to 80% of market value, and DSCRs as low as 1.25x.

In this article:
  1. Freddie Mac Financing for Targeted Affordable Housing Properties  
  2. Sample Freddie Mac Terms for Cash Loans for Affordable Housing Preservation in 2023
  3. Get Financing
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Freddie Mac Financing for Targeted Affordable Housing Properties  

Investors and developers who want to refinance or acquire an affordable housing property don't need to look further than the Freddie Mac Cash Loan for Affordable Housing Preservation. Freddie Mac Cash Loans for Affordable Housing Preservation offer LTVs of up to 80%, amortizations of up to 30 years, and DSCRs as low as 1.20x, making them an excellent way to preserve affordable housing developments for those who need them. Plus, these loans also support eligible mixed-use properties and offer both fixed and floating-rate options for borrowers. 

To learn more, check out Freddie Mac’s official Cash Loans for Affordable Housing Preservation Product Sheet or keep reading below for an in-depth explanation of the Cash Loans for Affordable Housing Preservation program.

Sample Freddie Mac Terms for Cash Loans for Affordable Housing Preservation in 2023

Size:  Varies based on LTV and DSCR requirements. 

Use:  Financing for the acquisition or refinance of stabilized affordable multifamily properties. 

Terms:  Up to 15 years fixed or floating-rate financing 

Amortization: Up to 30 years

Maximum LTV:  80% of market value 

Minimum DSCR:  1.25x

Eligible Borrowers: Developers with strong financial capacity who have successfully completed multiple resyndications using 4% LIHTCs and tax-exempt debt. 

Eligible Properties: Garden, mid-rise, or high-rise properties that meet affordability criteria. Must have 90% occupancy for at least 90 days. 

Prepayment Penalty: Loan maintenance or defeasance, depending on the product

Occupancy Requirement:  Must have 90% occupancy for at least 90 days. 

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