Multifamily.loans, Inc. provides Freddie Mac Multifamily Financing and Freddie Mac SBL Loans (Freddie Mac Small Balance Apartment loans). Freddie provides a diverse portfolio of multifamily loan products for both the acqusitions and recapitalizations of apartment communities. 

In the past, Freddie Mac was the government sponsored agency of choice for higher balance multifamily lending (including mobile home parks, health properties, affordable housing, student housing, and so-on). However, in a bid to become more aggressive in the lending market due to increased competition, early this year Freddie Mac released a small balance program to compete with Fannie Mae in which it has been pricing its loans better than Fannie (the traditionally more popular platform). Similar to Fannie Mae, it has strict underwriting guidelines for principals and properties, but once approved, there are very few multifamily lenders, outside of life companies on larger balances deals, that can compete.

You can also click here for more information about Freddie Mac's Small Balance Loans for multifamily financing between $1MM and $7MM.



Sample Freddie Mac Terms For Apartment Loans

Size:                     From $1,000,000 and up

Terms:                  Floating, 3, 5, 7, 10 + year terms 

Interest Rates:     Fixed Rates from 3.90%

Amortization:       Up to 30 years

Maximum LTV:     80% (subject to sub-market and debt service constraints)

Minimum DSCR:  From 1.25 for market-rate properties 

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

Rate Locks:          Early rate-lock option available for varying durations, typically ranging from 60 to 120 days until Freddie Mac purchase; Index Lock and Fast Track Early Rate-Lock options also available.

Prepayment:        Yield maintenance until securitized followed by 2-year lockout; defeasance thereafter. No prepayment premium for final 90 days.         

Advantages:

  • Highly competitive pricing.
  • Early rate lock.
  • Up to 80% LTV.
  • Partial-term and full-term interest-only available.
  • Supplemental loans available.
  • Non-recourse.

Disadvantages:

  • Selective of the properties they will finance.
  • Require financially strong borrowers.

Freddie Mac Fixed-Rate Conventional Loans

 Freddie Mac Fixed-Rate Conventional Loans

Multifamily investors and developers searching for a flexible form of Freddie Mac financing need look no further than the Freddie Mac Fixed-Rate Conventional Loan. Freddie Mac Fixed-Rate Conventional Loans are incredibly versatile, allowing for the financing of standard multifamily properties, student housing, seniors housing, cooperative housing developments, and targeted affordable housing properties, including Section 8 and certain LIHTC developments. Plus, these loans are non-recourse, offer flexible terms and amortizations of up to 30 years, and can offer financing up to $100 million (larger loans may be made on on a case-by-case basis.) 


Freddie Mac Float-to-Fixed-Rate Loans
(Two-Plus-Seven) 

 Freddie Mac Fixed-to-Floating Rate Loans (Two-Plus-Seven) 

Are you a multifamily investor who wants to save cash upfront, while locking in a fixed-rate for at least several years of your loan? If so, the Freddie Mac Float-to-Fixed-Rate Loan (Two-Plus-Seven) could be a fantastic option. This loan offers two years of floating-rate financing, followed by a fixed-rate loan period of seven years (hence two-plus-seven). Plus, borrowers can lock their fixed interest rate at closing, so they don't have to worry about rates going up during the first two years of the loan. Freddie Mac Float-to-Fixed-Rate Loans are available for most conventional and affordable properties, with the notable exceptions of seniors housing projects, student housing developments, and manufactured housing communities.


Freddie Mac Floating-Rate Loans 

 Freddie Mac Floating-Rate Loans

If you're an investor or developer looking for adjustable-rate source of financing for a multifamily property, the Freddie Mac Floating-Rate Loan could be the ideal solution. Freddie Mac Floating-Rate Loans are offered in 5, 7, and 10 year terms with amortizations of up to 30 years, and allow LTVs of up to 80%. Plus, Freddie Mac Floating-Rate Loans loans are non-recourse, have flexible prepayment options, and permit eligible mixed-use developments-- making them a great way to finance a variety of different kinds of multifamily properties. 


Freddie Mac HUD Section 8 Financing 

 Freddie Mac HUD Section 8 Financing

Running a Section 8 property isn't always easy; but those who manage it often reap significant financial rewards. With Freddie Mac HUD Section 8 Financing, you can finance the acquisition of Section 8 properties and enjoy the benefits yourself.  Freddie Mac HUD Section 8 Financing is available in 10-30 year terms for Low-Income Housing Tax Credit (LIHTC) properties, and 5-15 year terms for non-LIHTC properties. In addition, these loans offer up to 90% maximum LTV and as low as 1.15x DSCR for LIHTC properties, and up to 80% maximum LTV and as low as 1.20x DSCR or non-LIHTC developments. 


Freddie Mac Manufactured Housing Community Loan

 Freddie Mac Manufactured Housing Community Loan

In areas without large amounts of affordable housing, manufactured housing communities provide an essential role-- helping Americans of all ages find safe, high-quality housing without breaking the bank. In order to help maintain the supply of manufactured housing in the U.S., Freddie Mac’s Manufactured Housing Community Loan offers excellent terms for investors and developers, including non-recourse execution and LTVs of up to 80% for eligible properties. Plus, these loans are available in flexible 5, 7, and 10-year terms, with amortizations of up to 30 years, giving them enough versatility to finance MHCs with a variety of different financing needs. 


Manufactured Housing Resident Owned Community Loans

 Manufactured Housing Resident Owned Community Loans

You might already know that manufactured housing communities (MHCs) are an essential source of affordable housing-- especially in rural and non-urban areas. However, in many cases, resident-owned manufactured housing communities are even better -- allowing Americans on a budget to have an ownership stake in the place they live. To help resident-owned MHCs thrive, Freddie Mac's Manufactured Housing Resident Owned Community (MHROC) Loan includes generous terms, such as an LTV allowance up to 70% and flexible 5-30 year fixed-rate terms with amortizations of up to 30 years. Plus, Freddie Mac MHROC Loans are non-recourse, permit supplemental financing, and allow for both acquisition/conversion and seasoned refinancing transactions. 


Freddie Mac Student Housing Loans

 Freddie Mac Student Housing Loans

Across the U.S., student housing is a booming market-- and, for ambitious investors and developers, a Freddie Mac Student Housing Loan could be one of the most cost-effective ways to enter it.  Freddie Mac Student Housing Loans offer flexible terms of between 5-10 years (up to 30 for non-securitized, fixed-rate loans), loan amounts of between $5 and $100 million, and LTV allowances of up to 80%. Plus, these loans are non-recourse, allow for supplemental financing, and permit both the acquisition and refinancing of student housing properties. 


Freddie Mac Green Advantage

 Freddie Mac Green Advantage

If you're considering taking out a Freddie Mac multifamily loan for a conventional, seniors, or targeted affordable housing property, you should also know that you could receive better pricing by using Freddie Mac's Green Advantage Program. By getting a Green Assessment and committing to reducing their building's water/sewage usage by 25%, investors and developers can access higher LTV allowances and lower DSCR requirements for their loans. Plus, Freddie Mac reimburses properties up to $3,500 (at closing) for the costs of their energy assessment. 


Freddie Mac Lease-Up Loans

freddie-mac-lease-up-loan.jpg

Experienced multifamily investors know that when it comes to newly constructed properties, keeping the property afloat during the lease-up period can sometimes be a serious challenge. Fortunately, the Freddie Mac Lease-Up Loan is here to help. Freddie Mac Lease-Up Loans are available for both the acquisition and refinancing of newly built multifamily developments, including Conventional, Seniors, and Targeted Affordable properties. Plus, these loans are non-recourse, offer LTVs of up to 75%, and, like many other forms of Freddie Mac Multifamily financing, permit eligible mixed-use properties. 


Freddie Mac Moderate Rehab Loans 

freddie-mac-moderate-rehab-loans.jpg

Sometimes, a multifamily property needs a significant renovation-- but not a complete overhaul, in order to increase its marketability and profitability. If this describes a property that you own or operate, you might want to consider a Freddie Mac Moderate Rehab Loan. Designed for conventional properties planning between $25,000 and $60,000 per unit in renovations, these loans also offer LTV allowances up to 80% of the property's as-is value, flexible loan terms and amortizations, and an up to 36-month interest-only period during rehabilitation. 


Freddie Mac Revolving Credit Facility 

freddie-mac-revolving-credit-facility.jpg

Investors and developers who are managing a large portfolio of multifamily properties shouldn't have to take out an additional loan each time they want to acquire a new property. Fortunately, with Freddie Mac's Revolving Credit Facility, they don't have to. Freddie Mac Revolving Credit Facilities provide a non-recourse, incredibly flexible form of financing for large-scale investors; cross-collateralized and cross-defaulted Credit Facilities have no LTV or DSCR requirements on a property basis, as these figures are only examined on the basis of the Credit Facility as a whole. Plus, Fannie Mae Credit Facilities allow borrowers to move properties in and out of the facility without substitution, as well as to purchase a variety of different asset types using the same facility. 


Freddie Mac Single-Sponsor Execution

freddie-mac-single-sponsor-execution.jpg

If you're looking for $250 million+ to finance one or more large multifamily properties, a regular Freddie Mac Multifamily loan simply won't do. Fortunately, Freddie Mac's Single-Sponsor Execution is specifically developed to tailor to the needs of the largest investors and developers in the industry. Freddie Mac Single Sponsor Execution financing offers flexible terms of up to 30 years for fixed-rate loans and up to 10 years for floating-rate loans, is non-recourse, and offers both partial and full term interest-only options. Plus, this form of financing is available for all Freddie Mac Multifamily property types, including Targeted Affordable Housing, Conventional properties, Student Housing, Seniors Housing, and Manufactured Housing Communities. 


Freddie Mac Student Housing Value-Add Loan

 Freddie Mac Student Housing Value-Add Loan

After exploding in the last decade, the student housing market is still growing strong across the U.S.-- but investors that want to compete need to make sure their properties are up to par. To do so, they often need to invest in light repairs-- repairs that can easily be financed with a Freddie Mac Student Housing Value-Add Loan. Freddie Mac Student Housing Value-Add Loans, which are designed for student housing developments with planned repairs of between $10,000 to $25,000/unit, offer some pretty fantastic terms-- including LTV allowances of up to 85%, interest-only financing and no lock-outs. Plus, these loans offer Freddie Mac's standard non-recourse execution and are available for both acquisitions and refinances, making them a flexible and fantastic choice for all kinds of student housing developers. 


Freddie Mac Supplemental Loans

 Freddie Mac Supplemental Loans

Freddie Mac Multifamily borrowers looking for extra financing for their property need look no further than the Freddie Mac Supplemental Loan. Freddie Mac Supplemental Loans offer LTV allowances of up to 80%, are non-recourse, and have a minimum loan amount of $1 million. Plus, these loans are fully assumable with lender approval and a 1% fee. 


Freddie Mac Value-Add Loans

 Freddie Mac value-add loans

If you're a multifamily investor or developer interested in acquiring a property and making light renovations, or making light renovations to a property that you currently own, the Freddie Mac Value-Add Loan could be the perfect solution. Freddie Mac Value-Add Loans offer LTV allowances of up to 85%, are non-recourse, and are available for both acquisitions and refinances. Unlike Freddie Mac Moderate Rehab Loans, which are designed to finance more substantial renovations, Freddie Mac Value-Add Loans are intended to fund more modest renovations of between $10,000 and $25,000 per unit. 


Freddie Mac Workforce Housing Mezzanine Loans

workforce-housing-mezzanine-loans.jpg

Investors and developers interested in preserving an affordable housing development may want to consider a Freddie Mac Workforce Housing Mezzanine Loan. These loans, which are simultaneously originated with a 10-year Freddie Mac Conventional Loan in one streamlined process, allow borrowers to access combined LTVs of up to 90% and combined DSCRs as low as 1.05x. And, while borrowers must agree to keep 80% of the units affordable (not increasing more than a certain amount each year), some pass-through expenses are allowed, including pass-through expenses for limited capital improvements. 


Freddie Mac Small Balance Loans

freddie-mac-small-balance-loans.jpg

Smaller investors looking to make a splash in the multifamily market don't necessarily need to look for Fannie Mae financing or get an expensive privately-insured loan. Instead, they might find exactly what they're looking for in the Freddie Mac Small Balance Loan program. Freddie Mac Small Balance Loans have a minimum loan amount of $750,000 and a maximum amount of $7.5 million, offer LTVs of up to 80%, and have 30-year amortizations. Plus, these loans are non-recourse and offer flexible terms of 5-20 years, with partial and full-term interest-only options available. 


Freddie Mac Bridge to Resyndication 

freddie-mac-bridge-to-resyndication.jpg

Acquiring or refinancing a property with expiring Low-Income Housing Tax Credits (LIHTCs) can sometimes be a challenge-- but the Freddie Mac Bridge to Resyndication loan program can make it easier than ever. Bridge to Resyndication loans have a term of 24-months and permit LTVs of up to 85%, DSCRs as low as 1.15x, and are interest-only. Plus, these loans support eligible mixed-use properties and allow for one, 6-month loan extension (with approval.) 


Freddie Mac Cash Loans for Affordable Housing Preservation

freddie-mac-cash-loans-for-affordable-housing-preservation.jpg

If you're interested in acquiring or refinancing an affordable housing property, Freddie Mac's Cash Loan for Affordable Housing Preservation could be the perfect choice. These loans offer terms off up to 15 years amortizations off up to 30 years, LTV allowances up to 80% of market value, and DSCRs as low as 1.25x. Plus, like many other Freddie Mac Multifamily loans, they support eligible mixed-use properties, and offer both fixed and floating-rate options. 


Freddie Mac Tax-Exempt Loans

 Freddie mac tax-exempt loans

Investors looking to finance the acquisition, renovation, and refinancing of properties with 4% Low-Income Housing Tax Credits (LIHTC) credits with at least 7 years remaining in the LIHTC compliance period need look no further than the Freddie Mac Tax-Exempt Loan. Offering up to 30-year terms for fixed-rate loans and up to 10-year terms for variable-rate loans and amortizations of up to 30 years, these loans can help borrowers save time and money when compared to traditional bond credit enhancements. Plus, these loans offer up to an 85% LTV allowance for adjusted value and up to 90% LTV allowance for market value for fixed-rate loans, and up to 80% LTV for adjusted value and up to 85% LTV for market value for floating-rate loans. 


Freddie Mac Flexible Tax-Exempt Loans 

 Freddie Mac flexible tax exempt loans

Freddie Mac's Tax-Exempt Loan is a great way to finance the acquisition, renovation, and refinancing of properties with 4% Low-Income Housing Tax Credits (LIHTC) credits. But, if you're an investor or developer looking for a little more wiggle room, a Freddie Mac Flexible Tax-Exempt Loan could be an even better choice. Freddie Mac Flexible Tax-Exempt Loans have a 3-year, floating-rate, interest-only period, followed by a fixed-rate period of up to 15 years, with an overall maximum loan term of 18 years.  


Freddie Mac NOAH Preservation Loans

 Freddie mac noah preservation loans

For nonprofits focused on preserving America's supply of affordable housing, there's no better form of financing than the Freddie Mac NOAH Preservation Loan. NOAH Preservation Loans are designed to help eligible nonprofit organizations acquire Naturally Occurring Affordable Housing (NOAH) properties in order to keep rents at a specific percentage of the Area Median Income (AMI). To do so, these loans have LTV allowances of up to 80% and permit DSCRs as low as 1.20x, with flexible loan terms up to 15 years and flexible amortizations up to 30 years. 


Freddie Mac Impact Gap Financing 

freddie-mac-impact-gap-financing.jpeg

While Freddie Mac NOAH Preservation Loans are one of the best ways for nonprofits to acquire Naturally Occurring Affordable Housing (NOAH) properties in order to limit rent growth, they don't always provide 100% of the financing that nonprofits need-- especially for properties looking to undergo moderate renovations. To fix that, many nonprofits are now pairing their NOAH Preservation Loans with Freddie Mac Impact Gap Financing at origination, which allows combined LTCs of up to 97% and DSCRs as low as 1.05x. This form of financing allows private Impact Investors to use Freddie Mac's highly efficient infrastructure to invest in affordable housing, increasing the amount of funds nonprofits can use to preserve and upgrade NOAH properties. 


Freddie Mac TAH Express Loans