Tap to get financing
Multifamily Loans
Property Types
MultifamilyHealth Care & Senior LivingStudent HousingAffordable HousingMobile Home ParkOffice, Retail & More
Loan Options
Fannie MaeFreddie MacConstruction LoansLoans Under $1MFreddie Mac SBLFHA/HUD Multifamily LoansForeign National LoansCMBSBank LoansLife CompaniesBridge LoansHard MoneySoft MoneyMezzanine FinancingCrowdfundingSBA 504 LoansMezzanine Construction LoansUSDA 538 LoansFix and Flip LoansFractured Condo LoansDSCR LoansRefinance
Resources
BlogLoan DocsForms and TemplatesRatesLingoVideo LibraryMultifamily For SaleCommercial MortgagesFrequently Asked QuestionsBeginner's Guide
Calculators
Multifamily Mortgage CalculatorCap Rate CalculatorNOI CalculatorDSCR CalculatorLTV CalculatorDebt Yield CalculatorCash on Cash Return CalculatorYield Maintenance CalculatorIRR Calculator
About
About UsLeadershipTeamContactAffiliate Program (Coming Soon)We're Hiring
(561) 556-5777 Get financing →
Newly Published
May 22 at Multifamily Loans
Multifamily Minute Reader Reflections: What's the Most Important Part of Your Financing?
May 15 at Multifamily Loans
Multifamily Minute Reader Reflections: What Do You Look for in a Property Manager?
May 12 at Multifamily Loans
3 Reasons Why HUD Multifamily Loans Are So Popular Today
Explore the Janover Network
May 19 at SBA 7(a) Loans
Busting 5 SBA 7(a) Loan Myths
May 19 at SBA Express Loans
Top 5 Reasons to Get an SBA Express Loan in 2023
May 17 at Commercial Real Estate Loans
How Work-From-Home Policies Impact Office Properties
Was This Article Helpful?
Last updated on Jan 19, 2023
4 min read

Freddie Mac Fixed-Rate Conventional Loans

Freddie Mac Fixed-Rate Conventional Loans offer LTVs up to 80%, are non-recourse, and offer flexible terms and amortizations of up to 30 years, making them great for apartment buildings and other multifamily properties.

In this article:
  1. Freddie Mac Financing for Conventional Multifamily Properties
  2. Sample Freddie Mac Terms for Fixed-Rate Conventional Loans in 2023
  3. Get Financing
Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank at 6.1%$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1.4M offered by a Credit Union at 6.1%Click Here to Get Quotes!

Freddie Mac Financing for Conventional Multifamily Properties

If you're an investor or developer looking to finance a multifamily property with a Freddie Mac loan, the Freddie Mac Fixed-Rate Conventional Loan could be a great solution for your financing needs.

Freddie Mac Fixed-Rate Conventional Loans have a wide variety of potential uses, as they allow for the acquisition or refinancing of conventional properties, student housing developments, seniors housing projects, cooperative apartments, and targeted affordable housing developments.

Plus, these loans offer LTV allowances of up to 80%, are non-recourse, assumable (with approval and fees) and offer flexible terms and amortizations of up to 30 years, making them suitable for a variety of different multifamily financing situations. Freddie Mac Fixed-Rate Conventional Loan borrowers will usually receive a commitment within 45 to 60 days after initial application, which also makes them quite a bit speedier than alternatives like HUD multifamily loans. 

Keep reading below to learn more, or click here to download our easy-to-understand Freddie Mac Fixed-Rate Loan term sheet.

Sample Freddie Mac Terms for Fixed-Rate Conventional Loans in 2023

Size:  $5 million - $100 million (though smaller and larger loan amounts will be considered)

Use:  Acquisition or refinance 

Terms:  5-10 years (Up to 30 years if loan not purchased for securitization) 

Amortization:  Up to 30 years, with interest-only payment options 

Maximum LTV/Minimum DSCR:  

  • 5-7 Year Loans:

    • Amortizing: 75%/1.30x

    • Partial Term Interest-Only: 75%/1.30x

    • Full Term Interest-Only: 65%/1.40x

  • 7 Year Loans:

    • Amortizing: 80%/1.25x

    • Partial Term Interest-Only: 80%/1.25x

    • Full Term Interest-Only: 70%/1.30x

  • 7+ Year Loans:

    • Amortizing: 80%/1.25x

    • Partial Term Interest-Only: 80%/1.25x

    • Full Term Interest-Only: 70%1.35x

Recourse:  Non-recourse with standard “bad boy” carve-outs

Prepayment Options: Yield maintenance until securitization, 2-year lock-out period following securitization, defeasance allowed after securitization. Yield maintenance for securitized loans is permitted for an additional fee. No pre-payment premiums required in the last 90 days of the loan. 

Eligible Borrowers: 

  • Eligible borrowers include limited partnerships, limited liability companies, corporations, or tenancies in common (TICs) with 10 or fewer members

  • In some circumstances (and with specific requirements), general partnerships, REITs, limited liability partnerships, and some trusts may also be eligible

  • Typically, borrowers must be single purpose entities (SPEs), however, on loans less than $5 million, borrowers may be able to be Single Asset Entities instead

  • For tenancies in common (TICs), each member needs to be a SPE

Eligible Properties: 

  • Conventional multifamily properties, manufactured housing communities, seniors housing developments, cooperative housing, student housing developments, and targeted affordable housing, including LIHTC Year 4-10 and 11-15 and Section 8 properties

Refinancing Test: No test needed for amortizing loans with a DSCR of at least 1.40x and an LTV of less than or equal to 65%. Interest-only loans must pass a refinancing test before they are approved. 

Assumability:  Loans are assumable with lender approval, but require a 1% assumption fee paid to Freddie Mac. May also require an underwriting fee paid to the lender (typically $5,000.)

Timing:  Borrower will typically receive a commitment 45 to 60 days after initial application; third-party report timing and borrower due diligence submission may speed up or slow down the process 

Advantages:

  • Very competitive interest rates

  • Up to 80% LTV for some properties

  • Loans are non-recourse

  • Supplemental loans allowed

  • Mezzanine financing available

  • Early rate-lock options allowed, between 60-120 days before purchase, index locks are also available to eligible borrowers

  • Eligible mixed-use properties permitted

Disadvantages:

  • Requires replacement reserves

  • Requires third-party reports including Phase I Environmental Assessment, Appraisal, Physical Needs Assessment, Seismic Report may be required for properties in Seismic Zones 3 and 4

  • Application fees required: $2,000 or 0.1% of loan amount (whichever is larger) for conventional first mortgages, $5,000 or 0.15% of loan amount (whichever is larger) for seniors housing, $3,000 or 0.1% of loan amount (whichever is larger) for targeted affordable housing loans

  • Typically requires a loan origination fee

  • Typically requires between $8,000 and $12,000 in legal fees

  • Lender application fees also required (avg. of $15,000, including third-party reports, but may vary based on specific lender)

  • 2% rate lock fee usually required (refunded after Freddie Mac purchases loan, usually around 30 days post-closing)

In this article:
  1. Freddie Mac Financing for Conventional Multifamily Properties
  2. Sample Freddie Mac Terms for Fixed-Rate Conventional Loans in 2023
  3. Get Financing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

Multifamily Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487
(561) 556-5777 

hello@multifamily.loans

Multifamily Loans

Beginner's Guide
Multifamily Refinance
Multifamily Mortgage Calculator
Current Rates
Commercial Mortgage Calculator
Commercial Loan Rates

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2023 Janover Inc. All rights reserved.