Freddie Mac Revolving Credit Facility
Freddie Mac does not publish a product called a Revolving Credit Facility. The two executions that do the job are the Transitional Line of Credit and Structured Loans, and the difference between them decides how you buy.
What Freddie Mac Offers Instead of a Revolving Credit Facility
Freddie Mac does not publish a term sheet called a Revolving Credit Facility. Checked against mf.freddiemac.com/financing/conventional, /financing/tah, and /financing/structured-facility on July 31, 2026, the two products that do what multifamily sponsors want from a revolver are the Optigo Transitional Line of Credit and Structured Loans.
The distinction is not academic. A borrower who asks an Optigo lender for a revolving credit facility by name will get a blank look. Ask for a TLC and you are speaking the same language as the desk that prices it.
The Transitional Line of Credit
The TLC is a non-recourse, real estate secured line of credit with a three-year or five-year interest-only term and two conditional one-year extension options. You lock credit terms and spreads before you have identified a single property. Then you add assets, draw against them, release them when you sell or refinance, and add more.
For a sponsor buying three to eight assets over eighteen months, that sequencing is the whole point. You are not re-underwriting a lender relationship on every closing.
| Term | Three or five years, interest only, plus two conditional one-year extensions |
|---|---|
| Commitment size | $100 million preferred minimum, with expansion rights up to 50% of the initial commitment |
| Rate type | Floating |
| Typical LTV range | 50% to 75% |
| Minimum interest-only DSCR | 1.45x conventional, 1.45x to 1.50x manufactured housing communities, 1.40x targeted affordable subject to Freddie review; uncrossed pools add 0.10x |
| Guarantor covenants | 10% liquidity and 30% net worth |
| Commitment fee | 5 bps, plus a 10 bps property addition fee |
| Unused commitment fee | 20 bps annually on the undrawn balance |
| Seasoning fee | 50 bps annually, paid monthly at the asset level, starting in the fourth year an asset sits in the facility |
| Extension fee | $50,000 per extension year |
| Asset release | No fee on exit into a Freddie securitized product; 1% of the allocated loan amount on a property sale, waived if the buyer finances with a Freddie securitized product; 2% on other exits in years one to three, 1% after year three |
| Borrower profile | Seasoned, well-capitalized owner-operators with strong credit performance, preferably with prior facility experience |
Terms confirmed against the Optigo Transitional Line of Credit term sheet (mf.freddiemac.com/docs/product/Transitional_Line_of_Credit.pdf, dated 03/25), fetched July 31, 2026. Freddie states the Multifamily Seller/Servicer Guide controls and that terms may change without notice.
Why Does Crossing the Pool Matter So Much?
In a crossed and cross-defaulted facility, the LTV and DSCR sublimits are measured at the facility level, not property by property. There is no maximum LTV, minimum DSCR, or occupancy requirement on any individual asset. A stabilized 1975 garden deal throwing off cash can carry a lease-up asset that is currently at 61% occupancy.
Uncross the facility and every property has to clear the sublimits on its own, and the minimum DSCR goes up 0.10x. That is the price of being able to sell one asset without touching the rest.
Can You Borrow More as Values Improve?
Yes. Freddie describes a borrow-up option available quarterly, at first-mortgage pricing, once NOI or value has increased. You can also expand the facility itself. Extensions and expansions may be repriced, so the spread you locked at closing is not a permanent guarantee across the extension years.
Structured Loans for Larger Portfolios
Above roughly $400 million in unpaid principal balance, Freddie points sponsors toward Structured Loans instead. Smaller balances are considered. The distinguishing feature is the loan component structure on a crossed pool, which lets you mix fixed and floating debt, ladder maturities, and carry different prepayment structures inside one loan without assigning any of it to a named property at closing.
Terms run up to 30 years fixed or up to 10 years floating, or a blend. Fixed components price off Treasuries and floating components price off 30-day average SOFR. Most Freddie product types are eligible, including conventional, targeted affordable, seniors housing, student housing, and manufactured housing communities. Floating components prepay before fixed components, and a floating component cannot mature after a fixed one.
Structured Loans terms from mf.freddiemac.com/docs/product/structured_loans.pdf (dated 08/21), fetched July 31, 2026.
Which One Fits a Growing Multifamily Portfolio?
If you are assembling assets and want spread certainty before you have properties under contract, the TLC is built for exactly that. If you already own a large crossed pool and the problem is disposition sequencing rather than acquisition speed, Structured Loans give you the release flexibility and the maturity ladder.
Neither is a small-balance product. For a single asset, look at the fixed-rate conventional loan or the floating-rate loan instead.
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