Freddie Mac FRED Execution for Loans $15 Million and Under 

Freddie Mac's FRED Program Reduces Due Diligence Requirements, Creating a Streamlined Approval Process for Smaller Multifamily Loans 

If you're an investor or developer looking to finance a multifamily property with a Freddie Mac Conventional Loan or a Freddie Mac Targeted Affordable Housing (TAH) Loan under $15 million, Freddie Mac's FRED loan execution is likely to save you significant time and money. Starting in Oct. 2018, all qualifying Freddie Mac loans will go through this new, streamlined FRED process. 

FRED, which stands for fast, reliable, easy decisions, provides a variety of benefits to borrowers and lenders, including: 

  • Reduced SPE requirements
  • Reduced amount of SPE covenants in the Loan Agreement
  • Single member limited liability companies (LLCs) no longer need to be formed in Delaware
  • Separate opinions are no longer needed for required for single member Delaware LLCs
  • Zoning reports no longer needed
  • Existing property surveys can be used with the delivery of a clean survey certificate, as long as the title policy has a “same as survey” endorsement (where available) and no exceptions for any changes that could be shown on an updated survey
  • Engineering and environmental reports can now be combined into one Physical Risk Report
  • Termite reports no longer needed, as long as a termite contract is in place during the entire loan term