Freddie Mac Float-to-Fixed-Rate Financing for Multifamily Properties

Freddie Mac Insured Two-Plus-Seven Float-to-Fixed-Rate Loans for Apartment Buildings and Multifamily Developments

The Freddie Mac Float-to-Fixed-Rate Loan, also referred to as the Two-Plus-Seven, has an initial two-year period featuring a variable-interest rate, followed by a seven-year period featuring a fixed-interest rate. These loans are quite versatile, allowing for the financing of all conventional and affordable housing types, with the exceptions of student housing, seniors housing, manufactured housing communities, and pre-stabilized assets. Plus, borrowers can lock a coupon for the fixed-rate portion of the loan at initial closing, reducing their financial risk. 

To learn more, check out Freddie Mac’s official Float-to-Fixed Loan (Two Plus Seven) Product Sheet or keep reading below for an in-depth explanation of the Freddie Mac Float-to-Fixed Rate Loan program.

Sample Freddie Mac Terms For Float-to-Fixed-Rate Loans

Size:  Sized based on fixed-rate

Terms:  9 years: 2 years floating-rate, interest-only, 7 years fixed-rate 

Amortization:  Up to 30 years

Interest Rate:  

  • Variable-rate: 1-month LIBOR + 7-year floating pricing + 20 bps

  • Fixed rate: 7-year UST + 7-year fixed pricing + 20 bps

Maximum LTV/Minimum DSCR:  Sized based on fixed-rate

Prepayment Options:  No prepayments allowed during the 2 year variable-rate period, defeasance permitted during the fixed-rate period 

Timing: Typically 60-75 days from application to closing 


  • Very competitive interest rates

  • Loans are typically non-recourse

  • Automatic conversion to fixed-rate financing

  • Fixed-rate portion of the loan can be locked before closing

  • Supplemental loans allowed (starting in the second year of the fixed-rate period)


  • Typically requires third-party reports, including Appraisal, Phase I Environmental Assessment, and Physical Condition Assessment

  • Updated third-party reports required at conversion to fixed-rate financing (paid for by Freddie Mac unless additional loan funds are requested)

  • Application fee of $2,000 or 0.1% of loan amount required

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