Freddie Mac Targeted Affordable Housing (TAH) Express Financing

Freddie Mac Insured Loans for the Acquisition or Refinancing of Targeted Affordable Housing (TAH) Properties 

If you're an investor or developer looking to preserve a smaller Targeted Affordable Housing (TAH) property, Freddie Mac's TAH Express Loan could be the perfect fit. TAH Express Loans, which can provide up to $10 million in financing, offer eight fixed and floating-rate loan options, with partial and full-term interest-only loans also available. In addition, Freddie Mac TAH Express Loans have generous underwriting terms, with an LTV allowance of up to 80% and permitted DSCRs as low as 1.20x. Plus, TAH Express Loans offer a streamlined underwriting process with less required documentation, making them a great way to avoid much of the hassle of the typical loan application and approval process. 

To learn more, check out Freddie Mac’s official TAH Express Loans Product Sheet or keep reading below for an in-depth explanation of the TAH Express Loan program.

Sample Freddie Mac Terms For TAH Express Financing

Size:  $10 million or less 

Use:  Acquisition or refinancing of Targeted Affordable Housing (TAH) properties 


  • Fixed-rate: 5, 7, 10, or 15-year loans

  • Floating-rate: 5, 7, or 10-year loans

  • Partial interest-only terms available

  • Full term interest-only terms available in certain circumstances

Amortization:  30 years

Maximum LTV/Minimum DSCR

  • Top Market: 80% Max. LTV/1.20x Min. DSCR

  • Standard Market: 80% Max. LTV/1.25x Min. DSCR

  • Small Markets: 75% Max. LTV/1.30x Min. DSCR

  • Very Small Markets: 70% Max. LTV/1.35x Min. DSCR

Full Term Interest-Only LTV/DSCR Adjustments: 

  • Top and Standard Markets: 70% Max. LTV/Add 0.15x to Min. DSCR

  • Small Markets: 65% Max. LTV/Add 0.15x to Min. DSCR

  • Very Small Markets: 60% Max. LTV/Add 0.15x to Min. DSCR

Eligible Borrowing Entities: 

  • Loans under $6 million:

    • Single Asset Entities (SAEs)

    • Special Purpose Entities (SPEs)

    • Irrevocable Trusts

  • Loans above $6 million:

    • Special Purpose Entities (SPEs)

    • SAEs (with additional restrictions)

Eligible Borrowers:  Must have experience operating a Targeted Affordable Housing (TAH) property

Eligible Properties: 

Eligible property types include ncapped multifamily stabilized properties with one or more of the following affordable characteristics:

  • LIHTC properties in year 11 or later of their compliance period

  • Properties with Regulatory Agreements that impose rent or income restrictions

  • Properties with long-term Housing Assistance Payment (HAP) Contracts

  • Properties with Tax Abatements

  • Section 8 Voucher properties

*Properties located in Small and Very Small Markets may have additional requirements

Ineligible Properties: 

  • Seniors housing (AL, IL, ALC, SN) with resident services, including:

    • Assisted Living (AL)

    • Independent Living (IL)

    • Alzheimer's Care (ALC)

    • Skilled Nursing (SN)

  • Student housing (greater than 50% concentration)

  • Military housing (greater than 50% concentration)

  • LIHTC properties with Land Use Restrictive Agreements (LURAs) in compliance years 1 through 11

  • Historic Tax Credit (HTC) properties with a master lease structure

  • Rehabilitation financing

  • Tax-exempt financing

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

Prepayment Penalty:  

  • Fixed-Rate Loans: Defeasance, declining prepayment schedules, and yield maintenance options available

  • Floating-Rate Loans: 1-year lockout followed by 1% or declining schedule

  • Declining Schedule: Based on loan term:

    • 5 year: 5%, 4%, 3%, 2%, 1%

    • 7 year: 5%, 5%, 4%, 4%, 3%, 2%, 1%

    • 10 year: 5%, 5%, 4%, 4%, 3%, 3%, 2%, 2%, 1%, 1%

    • 15 year: 5%, 5%, 5%, 4%, 4%, 4%, 3%, 3%, 3%, 2%, 2%, 2%, 1%, 1%, 1%

Net Worth/Liquidity Requirements: 

  • Net Worth: Equal to loan amount

  • Liquidity: Equal to 9 months of principal and interest

Occupancy Requirements: 

  • 90% average for 3 months before underwriting

  • 85% average for 3 months before underwriting for properties with one or more of the following characteristics:

    • Property in a top market, and has been recently built or renovated

    • Property has more than 30 units

    • Or, has all of the following:

      • No history of serious crime

      • Newer, better management taking over

      • Appraised rents/occupancy higher than current rents/occupancy

      • No volatile historical occupancy swings

Subordinate Debt:  Permitted under certain circumstances. Approved lenders include governmental entities, Community Development Financial Institutions (CDFIs) and nonprofits.


  • Variety off fixed-rate, floating-rate, and interest-only options available

  • Full-term interest only also available

  • Up to 80% LTV allowance

  • Streamlined underwriting process

  • Less documentation required


  • Application fee of $3,000 or 0.1% of the loan amount (whichever is greater) required

  • Replacement reserves required for most properties, based on a Property Needs Assessment (PNA) rating:

    • Above average properties: $250/unit per year

    • Average properties: $300/unit per year

    • Below average properties: $350/unit per year

*Replacement reserve escrow deferred for above average rated properties