{"id":126888,"date":"2025-03-11T19:02:13","date_gmt":"2025-03-11T19:02:13","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/real-estate\/freddie-mac-multifamily-loans-the-perfect-introduction\/"},"modified":"2025-03-11T19:02:13","modified_gmt":"2025-03-11T19:02:13","slug":"freddie-mac-multifamily-loans-the-perfect-introduction","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=126888","title":{"rendered":"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<h2 class=\"title\">Freddie Mac Multifamily Loans \u2013 The Perfect Introduction<\/h2>\n<p class=\"date\"> <i class=\"fa fa-calendar-o\" aria-hidden=\"true\"\/> \u00a0May 25, 2020<\/p>\n<p>The Federal Home Loan Mortgage Corporation (Freddie Mac) is one of the largest players in the multifamily finance segment. It is a government-sponsored entity (GSE) similar to Fannie Mae. However, Freddie works with mortgages from smaller banks (\u201cthrifts\u201d) while Fannie deals with large banks. Freddie calls its multifamily loan business \u201cOptigo.\u201d Whatever you think of the name, you can\u2019t ignore the huge impact Freddie has on the multifamily loan segment.<\/p>\n<p>In this article, we\u2019ll look at how Freddie Mac supports the marketing for financing multifamily properties. The discussion will include the current program guidelines and Freddie Mac multifamily loan rates.<\/p>\n<h2>What are Freddie Mac Multifamily Loans?<\/h2>\n<p>Freddie Mac multifamily loans are guaranteed loans made chiefly through the <strong>Conventional Loan Program (CLP)<\/strong>. Under this program, more than 150 lenders nationwide originate, close, and sell conventional multifamily mortgage to Freddie. Freddie Mac collects fees in return for guaranteeing the loans. Note that these loan guarantees come from Freddie, not from the U.S. government. It pools the mortgages it buys, and issues mortgage backed securities backed by the pools.<\/p>\n<p>The CLP targets properties in the $5 million to $100 million range, though exceptions are possible. The CLP offers term sheets on multiple loan types, including:<\/p>\n<ul>\n<li>Fixed-rate loans<\/li>\n<li>Floating-rate loans<\/li>\n<li>Float-to-fixed loans<\/li>\n<li>Structured pool transactions<\/li>\n<li>HUD Section 8 transactions<\/li>\n<li>Manufactured housing community loans<\/li>\n<li>Student housing financing<\/li>\n<li>Lease-up loans<\/li>\n<li>Moderate rehabs<\/li>\n<\/ul>\n<h3>Other Freddie Mac Programs<\/h3>\n<p>In addition to the CLP program, Freddie Mac also operates the following multifamily programs:<\/p>\n<ul>\n<li><strong>Multifamily Small Balance Loan Program: <\/strong> This is a program for small multifamily buildings with 5 to 50 units valued at $1 million to $7.5 million.<\/li>\n<li><strong>Targeted Affordable Housing Program: <\/strong> For properties in underserved neighborhoods that low-income families can afford to rent. The program includes cash loans, tax-exempt loans, bond credit enhancements, and more.<\/li>\n<li><strong>Seniors Housing Loan Program:<\/strong> Mortgages for seniors housing properties, including assisted living, independent living, skilled nursing, and memory care property types.<\/li>\n<li><strong>Multifamily Green Advantage Program:<\/strong> For energy-efficient workforce housing in which at least 50% of units must be affordable at incomes from 80% to 150% of average market incomes.<\/li>\n<\/ul>\n<h2>How Assets America<sup>\u00ae<\/sup> Can Help<\/h2>\n<p>Freddie Mac may not be the right answer for many multifamily projects. As discussed above, there are several reasons to seek a different lender. We are Assets America<sup>\u00ae<\/sup> and we broker real estate loans starting at $20 million. If you require a multifamily loan, contact us for an in-depth review of what we can offer. We move fast with less red tape, so contact us today at <a href=\"https:\/\/assetsamerica.com\/freddie-mac-multifamily-loans\/tel:(206) 622-3000\"><strong>206-622-3000<\/strong><\/a> for a private consultation, or simply fill out the below form for a prompt response!<\/p>\n<h2 class=\"textBlue text-capitalize\">Apply For Financing<\/h2>\n<div class=\"\"><noscript class=\"ninja-forms-noscript-message\"><br \/>\n\tNotice: JavaScript is required for this content.<\/noscript><\/p>\n<p>        <!-- That data is being printed as a workaround to page builders reordering the order of the scripts loaded--><\/p><\/div>\n<p>\u00a0<\/p>\n<h2>Freddie Mac Multifamily Loan Guidelines and Rates<\/h2>\n<p>The guidelines vary by Freddie Mac program. Here is a summary of the Freddie Mac multifamily loan guidelines for each program. Unless otherwise noted, interest rates on 30-year loans are below 4.5%.<\/p>\n<h3>Freddie Mac Multifamily CLP Fixed\/Floating Rate Program<\/h3>\n<p><strong>Eligible Properties:<\/strong><\/p>\n<ul>\n<li>Standard multifamily housing<\/li>\n<li>Co-ops<\/li>\n<li>Student housing<\/li>\n<li>Manufactured housing communities<\/li>\n<li>Targeted Affordable Housing Cash Loan properties<\/li>\n<\/ul>\n<p><strong>Eligible Borrowers:<\/strong><\/p>\n<ul>\n<li>Nine months interest and principal liquidity.<\/li>\n<li>Net worth not less than loan amount.<\/li>\n<li>Minimum credit score of 650<\/li>\n<li>No bankruptcies, deed-in-lieu, foreclosures, or defaults for seven years.<\/li>\n<li>At least one year commercial or multifamily real estate experience.<\/li>\n<li>Borrowers up to $6 million: Individuals (U.S. citizens only), limited liability<\/li>\n<li>Limited liability corporations, limited partnerships, corporations, limited liability partnerships, REITs, certain trusts, or tenancy in common (TIC) with 10 or fewer tenants in common.<\/li>\n<li>Must be a single purpose entity (SPE) or single asset entity (SAE). If TIC borrower, each tenant in common must be an SPE.<\/li>\n<\/ul>\n<table width=\"623\">\n<tbody>\n<tr>\n<td width=\"312\">\n<p>Amortization<\/p>\n<\/td>\n<td width=\"312\">\n<p>30 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Current Rate<\/p>\n<\/td>\n<td width=\"312\">\n<p>Below 4.5% for 30-year loan<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Impounds<\/p>\n<\/td>\n<td width=\"312\">\n<p>Tax and insurance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest accrual<\/p>\n<\/td>\n<td width=\"312\">\n<p>Actual\/360 or 30\/360<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest-only available?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Partial<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan size<\/p>\n<\/td>\n<td width=\"312\">\n<p>$5 million to $100 million<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan term<\/p>\n<\/td>\n<td width=\"312\">\n<p>5 to 10 years; up to 30 years for non-securitized<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Lock-out period<\/p>\n<\/td>\n<td width=\"312\">\n<p>2 years following securitization<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Maximum loan-to-value ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>75% to 80%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum debt service coverage ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>1.20 to 1.40<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum occupancy<\/p>\n<\/td>\n<td width=\"312\">\n<p>90%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Prepayment penalty<\/p>\n<\/td>\n<td width=\"312\">\n<p>Step down or yield maintenance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate locks<\/p>\n<\/td>\n<td width=\"312\">\n<p>Yes, six months from commitment<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate type<\/p>\n<\/td>\n<td width=\"312\">\n<p>Fixed; Floating based on 1-month LIBOR with cap;<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Recourse\/non-recourse<\/p>\n<\/td>\n<td width=\"312\">\n<p>Non-recourse with carveouts<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Replacement reserves required?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Yes<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Supplemental loan?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Available subject to loan agreement<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Freddie Mac Multifamily CLP Float-to-Fixed Rate Program<\/h3>\n<p>Same guidelines as the Freddie Mac Multifamily CLP Fixed\/Floating Rate Program except for the following:<\/p>\n<p>Floating-rate period:<\/p>\n<ul>\n<li>2 years<\/li>\n<li>Interest-only, no cap required, locked-out\/no prepayments<\/li>\n<li>No supplemental loans during floating-rate period<\/li>\n<li>Rate is LIBOR + 7-year floating pricing + 20 bps<\/li>\n<\/ul>\n<p>Fixed-rate period:<\/p>\n<ul>\n<li>7 years<\/li>\n<li>Interest-only subject to 7-year fixed-rate interest-only credit parameters with defeasance<\/li>\n<li>Amortizing loan with defeasance<\/li>\n<li>Securitization-ready<\/li>\n<li>Rate is 7-year U.S. Treasury Note + 7-year fixed pricing + 20 bps<\/li>\n<li>Supplement loans allowed after first year<\/li>\n<li>Conversion is automatic<\/li>\n<\/ul>\n<h3>Freddie Mac Multifamily CLP Structured Pool Transaction<\/h3>\n<p>For borrowers with sizable multi-property portfolios. Loan component structure doesn\u2019t assign properties to various loan components. You can choose between crossed or uncrossed collateralization.<\/p>\n<p>Eligible products:<\/p>\n<ul>\n<li>Conventional<\/li>\n<li>Targeted affordable<\/li>\n<li>Seniors housing<\/li>\n<li>Student housing<\/li>\n<li>Manufactured housing communities<\/li>\n<\/ul>\n<table width=\"623\">\n<tbody>\n<tr>\n<td width=\"312\">\n<p>Amortization<\/p>\n<\/td>\n<td width=\"312\">\n<p>30 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Current Rate<\/p>\n<\/td>\n<td width=\"312\">\n<p>Below 4.5% for 30-year loan<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Impounds<\/p>\n<\/td>\n<td width=\"312\">\n<p>Tax, insurance, and replacement reserves<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest accrual<\/p>\n<\/td>\n<td width=\"312\">\n<p>Actual\/360 or 30\/360<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest-only available?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Full or partial<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan size<\/p>\n<\/td>\n<td width=\"312\">\n<p>$400 million or higher<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan term<\/p>\n<\/td>\n<td width=\"312\">\n<p>Fixed rate up to 30 years; Floating rate up to 10 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Lock-out period<\/p>\n<\/td>\n<td width=\"312\">\n<p>2 years following securitization<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Maximum loan-to-value ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>75% to 80%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum debt service coverage ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>1.20 to 1.40<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum occupancy<\/p>\n<\/td>\n<td width=\"312\">\n<p>Varies<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Prepayment penalty<\/p>\n<\/td>\n<td width=\"312\">\n<p>Variety of options<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate locks<\/p>\n<\/td>\n<td width=\"312\">\n<p>Early, index, and standard delivery locks<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate type<\/p>\n<\/td>\n<td width=\"312\">\n<p>Fixed based on U.S. Treasuries; Floating based on 1-month LIBOR with cap<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Recourse\/non-recourse<\/p>\n<\/td>\n<td width=\"312\">\n<p>Non-recourse with carveouts<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Replacement reserves required?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Yes<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Supplemental loan?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Available subject to loan agreement<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Freddie Mac Multifamily CLP HUD Section 8 Program<\/h3>\n<p>This program provides housing assistance to about 5 million low-income households.<\/p>\n<p>Eligible properties:<\/p>\n<ul>\n<li>Garden, mid-rise, and high-rise Section 8 multifamily housing<\/li>\n<li>Project-based contracts<\/li>\n<li>Project-based vouchers<\/li>\n<\/ul>\n<p><strong>Eligible Borrowers:<\/strong><\/p>\n<ul>\n<li>Must have experience managing and owning similar Section 8 properties<\/li>\n<\/ul>\n<p>Subsidy (one of the following):<\/p>\n<ul>\n<li>Long-term Section 8 contract, which is a new 20-year contract or an existing<\/li>\n<\/ul>\n<p>contract that has a remaining term equal to or greater than the term of the<\/p>\n<p>mortgage, or<\/p>\n<ul>\n<li>Short-term Section 8 contract, which has a remaining term of less than the term of<\/li>\n<li>the mortgage<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<table width=\"623\">\n<tbody>\n<tr>\n<td width=\"312\">\n<p>Amortization<\/p>\n<\/td>\n<td width=\"312\">\n<p>Up to 35 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Current Rate<\/p>\n<\/td>\n<td width=\"312\">\n<p>Below 4.5% for 30-year loan<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Impounds<\/p>\n<\/td>\n<td width=\"312\">\n<p>Tax and insurance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest accrual<\/p>\n<\/td>\n<td width=\"312\">\n<p>Actual\/360 or 30\/360<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest-only available?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Partial<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan size<\/p>\n<\/td>\n<td width=\"312\">\n<p>Based on individual project<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan term<\/p>\n<\/td>\n<td width=\"312\">\n<p>5 to 10 years; up to 30 years for non-securitized<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Lock-out period<\/p>\n<\/td>\n<td width=\"312\">\n<p>2 years following securitization<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Maximum loan-to-value ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>80% \u2013 90%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum debt service coverage ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>1.15 \u2013 1.20<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Prepayment penalty<\/p>\n<\/td>\n<td width=\"312\">\n<p>Defeasance or yield maintenance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate type<\/p>\n<\/td>\n<td width=\"312\">\n<p>Fixed<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Recourse\/non-recourse<\/p>\n<\/td>\n<td width=\"312\">\n<p>Non-recourse with carveouts<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Subordinate financing?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Case-by-case basis<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Freddie Mac Multifamily CLP Manufactured Housing Communities Program<\/h3>\n<p><strong>Eligible Properties:<\/strong><\/p>\n<ul>\n<li>Stabilized, high-quality, and professionally managed manufactured housing communities (MHCs)<\/li>\n<li>Up to 25% rentals<\/li>\n<li>Predominantly families or all-ages<\/li>\n<li>Underserved populations (rural and non-metro)<\/li>\n<li>Minimum of five pad sites<\/li>\n<li>The percentage of homes owned by the borrower, borrower-affiliate, or third-party investor cannot exceed 25% in aggregate<\/li>\n<li>Homes must conform to the federal construction and safety standards<\/li>\n<li>Septic systems and private wells are OK with considerations<\/li>\n<li>Leases cannot contain options to purchase borrower-owned manufactured homes or pad site<\/li>\n<li>Rules do not permit retail sales or financing by borrowing entity of any manufactured homes<\/li>\n<li>Broken condominiums and RV campgrounds are not eligible<\/li>\n<\/ul>\n<p><strong>Eligible Borrowers:<\/strong><\/p>\n<ul>\n<li>Two or more years\u2019 experience operating MHCs<\/li>\n<li>Limited liability corporations, limited partnerships, corporations, limited liability partnerships, REITs, certain trusts, or tenancy in common (TIC) with 10 or fewer tenants in common.<\/li>\n<li>Must be a single purpose entity (SPE) or single asset entity (SAE). If TIC borrower, each tenant in common must be an SPE.<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<table width=\"623\">\n<tbody>\n<tr>\n<td width=\"312\">\n<p>Amortization<\/p>\n<\/td>\n<td width=\"312\">\n<p>30 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Current Rate<\/p>\n<\/td>\n<td width=\"312\">\n<p>Below 4.5% for 30-year loan<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Impounds<\/p>\n<\/td>\n<td width=\"312\">\n<p>Tax and insurance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest accrual<\/p>\n<\/td>\n<td width=\"312\">\n<p>Actual\/360 or 30\/360<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest-only available?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Partial or full<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan size<\/p>\n<\/td>\n<td width=\"312\">\n<p>$1 million+<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan term<\/p>\n<\/td>\n<td width=\"312\">\n<p>5, 7 or 10 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Maximum loan-to-value ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>75% to 80%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum debt service coverage ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>1.25 to 1.40<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Prepayment penalty<\/p>\n<\/td>\n<td width=\"312\">\n<p>Step down or yield maintenance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate locks<\/p>\n<\/td>\n<td width=\"312\">\n<p>Early rate, spread lock, index lock options<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate type<\/p>\n<\/td>\n<td width=\"312\">\n<p>Fixed; Floating based on 1-month LIBOR with cap;<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Recourse\/non-recourse<\/p>\n<\/td>\n<td width=\"312\">\n<p>Non-recourse with carveouts<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Replacement reserves required?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Minimum $50\/site\/year and $250\/home\/year<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Supplemental loan?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Available subject to loan agreement<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<h3>Freddie Mac Multifamily CLP Student Housing Loan Program<\/h3>\n<p>Eligible properties:<\/p>\n<ul>\n<li>Purpose-built student housing properties: minimum of one bathroom for every two bedrooms, each unit must have a separate full kitchen<\/li>\n<li>Stabilized properties with greater than 50% occupancy by student tenants<\/li>\n<li>College\/university has 8,000+ students<\/li>\n<li>Property is less than two miles from college\/university or on a public transportation route<\/li>\n<\/ul>\n<p>Eligible borrowers:<\/p>\n<ul>\n<li>Limited liability corporations, limited partnerships, corporations, limited liability partnerships, REITs, certain trusts, or tenancy in common (TIC) with 10 or fewer tenants in common.<\/li>\n<li>Must be a single purpose entity (SPE) or single asset entity (SAE). If TIC borrower, each tenant in common must be an SPE.<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<table width=\"623\">\n<tbody>\n<tr>\n<td width=\"312\">\n<p>Current rate<\/p>\n<\/td>\n<td width=\"312\">\n<p>Below 4.5% for 30-year loan<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Impounds<\/p>\n<\/td>\n<td width=\"312\">\n<p>Tax and insurance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest-only available?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Yes<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan size<\/p>\n<\/td>\n<td width=\"312\">\n<p>$5 million \u2013 $100 million<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan term<\/p>\n<\/td>\n<td width=\"312\">\n<p>5 \u2013 30 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Maximum loan-to-value ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>65% \u2013 80%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum debt service coverage ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>1.30 \u2013 1.45<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Prepayment penalty<\/p>\n<\/td>\n<td width=\"312\">\n<p>Greater of 1% or yield maintenance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate lock<\/p>\n<\/td>\n<td width=\"312\">\n<p>Early and index rate locks<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate type<\/p>\n<\/td>\n<td width=\"312\">\n<p>Fixed or floating<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Recourse\/non-recourse<\/p>\n<\/td>\n<td width=\"312\">\n<p>Non-recourse with carve-outs<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Replacement reserves required?<\/p>\n<\/td>\n<td width=\"312\">\n<p>$150\/bedroom or $300\/unit<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Supplemental loans permitted?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Yes, subject to loan agreement<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Freddie Mac Multifamily CLP Lease-up Loan Program<\/h3>\n<p>Covers the pre-stabilization period after construction is complete. The program is for acquiring or refinancing new properties. All transactions require a lease-up credit enhancement of at least 5% of the unpaid principal.<\/p>\n<p><strong>Eligible Properties:<\/strong><\/p>\n<ul>\n<li>Well-constructed properties showing robust lease-up trends in strong markets and good locations<\/li>\n<li>Stabilization expected to complete within 12 months of closing<\/li>\n<li>Manufactured housing community and student housing transactions are not eligible<\/li>\n<\/ul>\n<p><strong>Eligible Borrowers:<\/strong><\/p>\n<ul>\n<li>Borrowers must have experience with lease-up properties and\/or new construction<\/li>\n<li>Generally, have strong financial capacity<\/li>\n<li>Real estate management expertise with good performance<\/li>\n<li>Good credit history<\/li>\n<\/ul>\n<table width=\"623\">\n<tbody>\n<tr>\n<td width=\"312\">\n<p>Current rate<\/p>\n<\/td>\n<td width=\"312\">\n<p>Variable<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Impounds<\/p>\n<\/td>\n<td width=\"312\">\n<p>Tax and insurance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest-only available?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Yes<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan size<\/p>\n<\/td>\n<td width=\"312\">\n<p>$5 million \u2013 $100 million<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan term<\/p>\n<\/td>\n<td width=\"312\">\n<p>5- 10 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Maximum loan-to-value ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>70% \u2013 75%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum debt service coverage ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>1.30 \u2013 1.45<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Prepayment penalty<\/p>\n<\/td>\n<td width=\"312\">\n<p>Yield maintenance before securitization<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate lock<\/p>\n<\/td>\n<td width=\"312\">\n<p>Triggered by 50% to 60% leasing and occupancy<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate type<\/p>\n<\/td>\n<td width=\"312\">\n<p>Fixed or floating<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Recourse\/non-recourse<\/p>\n<\/td>\n<td width=\"312\">\n<p>Non-recourse with carve-outs<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Replacement reserves required?<\/p>\n<\/td>\n<td width=\"312\">\n<p>$150\/bedroom or $300\/unit<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<h3>Freddie Mac Multifamily CLP Moderate Rehab Program<\/h3>\n<p>Low-cost loans advanced monthly during rehab period.<\/p>\n<p>Eligible properties:<\/p>\n<ul>\n<li>$25,000-$60,000 per unit for renovations, minimum of $7,500 interior work per unit<\/li>\n<li>Minimum debt coverage ratio (DCR) 1.0 on interest-only loans<\/li>\n<li>Not eligible \u2014 student housing, seniors housing, MHC, preferred equity with mezzanine financing and hard pay<\/li>\n<\/ul>\n<p>Eligible borrowers:<\/p>\n<ul>\n<li>Well-capitalized and experienced borrowers who have successfully finished rehabilitation projects of comparable scope<\/li>\n<li>Must be familiar with the Freddie Mac loan process<\/li>\n<\/ul>\n<table width=\"623\">\n<tbody>\n<tr>\n<td width=\"312\">\n<p>Amortization<\/p>\n<\/td>\n<td width=\"312\">\n<p>Based on borrower<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Current Rate<\/p>\n<\/td>\n<td width=\"312\">\n<p>Below 4.5% for 30-year loan<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Impounds<\/p>\n<\/td>\n<td width=\"312\">\n<p>Tax and insurance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest accrual<\/p>\n<\/td>\n<td width=\"312\">\n<p>Actual\/360 or 30\/360<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest-only available?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Only during rehab period<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan size<\/p>\n<\/td>\n<td width=\"312\">\n<p>Up to $60,000\/unit<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan term<\/p>\n<\/td>\n<td width=\"312\">\n<p>Up to 3 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Maximum loan-to-value ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>80% of as-is value<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum debt service coverage ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>1.20 to 1.30<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Prepayment penalty<\/p>\n<\/td>\n<td width=\"312\">\n<p>2% during rehab period<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate type<\/p>\n<\/td>\n<td width=\"312\">\n<p>Usually float-to-fixed. If float, capped.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Recourse\/non-recourse<\/p>\n<\/td>\n<td width=\"312\">\n<p>Non-recourse with carveouts<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<h3>Freddie Mac Multifamily Small Balance Loans Program<\/h3>\n<p>Eligible properties:<\/p>\n<ul>\n<li>Agreements (LURAs) in either the final two years of the initial compliance period or the extended use period<\/li>\n<li>Cooperatives in Long Island and the five boroughs of New York City<\/li>\n<li>Low-Income Housing Tax Credit (LIHTC) properties with Land Use Restriction<\/li>\n<li>Properties with certain regulatory agreements that impose rent and\/or income restrictions<\/li>\n<li>This includes properties with local rent subsidies for 10% or fewer units where the subsidy doesn\u2019t depend on the owner\u2019s initial or ongoing certification of tenant eligibility<\/li>\n<li>Properties with space for certain commercial uses<\/li>\n<li>Also includes properties with tax abatements<\/li>\n<li>Properties with tenant-based housing vouchers<\/li>\n<li>Seniors housing with no resident services<\/li>\n<\/ul>\n<p>Eligible borrowers:<\/p>\n<ul>\n<li>Up to $6 million \u2014 Individuals who are U.S. citizens; limited liability companies; limited partnerships; Special Purpose Entities; Single Asset Entities; tenancy in common with up to five unrelated members; and certain trusts<\/li>\n<li>Between $6 million and $7.5 million \u2013 Single Asset Entities<\/li>\n<\/ul>\n<table width=\"623\">\n<tbody>\n<tr>\n<td width=\"312\">\n<p>Amortization<\/p>\n<\/td>\n<td width=\"312\">\n<p>Up to 30 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Current Rate<\/p>\n<\/td>\n<td width=\"312\">\n<p>Below 4.5% for 30-year loan<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Impounds<\/p>\n<\/td>\n<td width=\"312\">\n<p>Tax and replacement reserve escrows deferred<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest accrual<\/p>\n<\/td>\n<td width=\"312\">\n<p>Actual\/360 or 30\/360<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest-only available?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Partial; full may be available<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan size<\/p>\n<\/td>\n<td width=\"312\">\n<p>Up to $7.5 million<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan term<\/p>\n<\/td>\n<td width=\"312\">\n<p>Fixed rate 5 to 10 years; Hybrid ARM 20 years with up to 10 years initial fixed<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Lock-out period<\/p>\n<\/td>\n<td width=\"312\">\n<p>60 \u2013 120 days<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Maximum loan-to-value ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>70% \u2013 80%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum debt service coverage ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>1.20 \u2013 1.40<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum occupancy<\/p>\n<\/td>\n<td width=\"312\">\n<p>85% -90%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Prepayment penalty<\/p>\n<\/td>\n<td width=\"312\">\n<p>Step down or yield maintenance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate locks<\/p>\n<\/td>\n<td width=\"312\">\n<p>Yes, six months from commitment<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate type<\/p>\n<\/td>\n<td width=\"312\">\n<p>Fixed or hybrid ARM<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Recourse\/non-recourse<\/p>\n<\/td>\n<td width=\"312\">\n<p>Non-recourse with carveouts<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Replacement reserves required?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Yes, rating-based<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Supplemental loan?<\/p>\n<\/td>\n<td width=\"312\">\n<p>No<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Freddie Mac Targeted Affordable Housing Loan Program<\/h3>\n<p>Freddie Mac provides guidelines for <a href=\"https:\/\/mf.freddiemac.com\/product\/tah.html\" target=\"_blank\" rel=\"noopener noreferrer\">targeted affordable housing loans<\/a> of the following types:<\/p>\n<ul>\n<li>Bridge to Resyndication<\/li>\n<li>Cash Loan for Affordable Housing Preservation<\/li>\n<li>Flexible Tax-Exempt Loan<\/li>\n<li>Green Advantage<\/li>\n<li>HUD Section 8 Financing<\/li>\n<li>Impact Gap Financing<\/li>\n<li>NOAH Preservation Loan<\/li>\n<li>Non-LIHTC Forwards<\/li>\n<li>Seasoned Loan Pool Credit Enhancement<\/li>\n<li>Seasoned Loan Securitization<\/li>\n<li>TAH Express<\/li>\n<li>Tax-Exempt Loan<\/li>\n<li>Value Add<\/li>\n<\/ul>\n<h3>Freddie Mac Seniors Housing Loan Program<\/h3>\n<p>Eligible properties:<\/p>\n<ul>\n<li>Assisted living<\/li>\n<li>Independent living<\/li>\n<li>Memory care<\/li>\n<li>Properties with limited skilled nursing<\/li>\n<\/ul>\n<p>Eligible Borrowers:<\/p>\n<ul>\n<li>Experienced owner\/operator of comparable facilities<\/li>\n<li>Loan less than $5 million \u2014 Single Asset Entity (general partnership, limited partnership, limited liability company, corporation, or REIT)<\/li>\n<li>Loan is $5 million+ \u2014 Single Purpose Entity (limited partnership, corporation, limited liability company)<\/li>\n<li>If tenancy in common, each TIC must be an SPE<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<table width=\"623\">\n<tbody>\n<tr>\n<td width=\"312\">\n<p>Amortization<\/p>\n<\/td>\n<td width=\"312\">\n<p>Up to 30 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Current rate<\/p>\n<\/td>\n<td width=\"312\">\n<p>Below 4.5% for 30-year loan<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Impounds<\/p>\n<\/td>\n<td width=\"312\">\n<p>Tax, insurance, replacement reserve<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest accrual<\/p>\n<\/td>\n<td width=\"312\">\n<p>Actual\/360 or 30\/360<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Interest-only?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Available<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan size<\/p>\n<\/td>\n<td width=\"312\">\n<p>$5 million+<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Loan term<\/p>\n<\/td>\n<td width=\"312\">\n<p>5 \u2013 10 years floating rate; 30 years fixed<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Maximum loan-to-value ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>70% \u2013 75%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Minimum debt service coverage ratio<\/p>\n<\/td>\n<td width=\"312\">\n<p>1.30 \u2013 1.65<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Prepayment penalty<\/p>\n<\/td>\n<td width=\"312\">\n<p>Defeasance or yield maintenance<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate lock<\/p>\n<\/td>\n<td width=\"312\">\n<p>Early, index, spread hold<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Rate type<\/p>\n<\/td>\n<td width=\"312\">\n<p>Fixed or floating<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Recourse\/non-recourse<\/p>\n<\/td>\n<td width=\"312\">\n<p>Mostly non-recourse with carve-outs<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Replacement reserves required?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Yes<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\n<p>Supplemental loans?<\/p>\n<\/td>\n<td width=\"312\">\n<p>Yes<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>Important Forms and Documents<\/h2>\n<p>Freddie Mac requires many forms for its CLP program. Some of the important ones include:<\/p>\n<ul>\n<li>Benchmarking Data Consultant Engagement Certification<\/li>\n<li>Borrower Quarterly Certification \u2013 Value Add Transaction<\/li>\n<li>Cooperative Corporation Certification<\/li>\n<li>Debt Service Reserve Rider to Loan Agreement<\/li>\n<li>Deferred Rate Cap Agreement and Reserve Fund Rider to Loan Agreement<\/li>\n<li>Ground Fault Interrupter No Disbursement from Repair Reserve Rider to Loan Agreement<\/li>\n<li>Letter of Credit in Lieu of Reserve Fund for Insurance Premiums or Taxes Rider to Loan Agreement<\/li>\n<li>Loan Agreement<\/li>\n<li>Radon Rider to Loan Agreement<\/li>\n<li>Rate Cap Agreement Reserve Rider to Loan Agreement<\/li>\n<li>Rental Achievement Cash Reserve Rider to Loan Agreement<\/li>\n<li>Rental Achievement Letter of Credit Rider to Loan Agreement<\/li>\n<li>Repair Reserve Fund \u2013 Stab-Lok Inspection Rider to Loan Agreement<\/li>\n<li>Replacement Reserve \u2013 Additional Deposits Rider to Loan Agreement<\/li>\n<li>Replacement Reserve \u2013 Deferred Deposits Rider to Loan Agreement<\/li>\n<li>Replacement Reserve Fund \u2013 Deferred Deposits \u2013 Co-op Borrowers Rider to Loan Agreement<\/li>\n<li>Replacement Reserve Fund Monthly Deposit Cap Rider to Loan Agreement<\/li>\n<li>Required Averaged Capital Expenditures Rider to Loan Agreement<\/li>\n<li>Required Yearly Capital Expenditures Rider to Loan Agreement<\/li>\n<li>Riders to Loan Agreements<\/li>\n<li>Section 8 Housing Assistance Payments Reserve Rider to Loan Agreement<\/li>\n<li>Seller\u2019s Certification of Outstanding Items<\/li>\n<li>Seller\u2019s Certification Regarding Certificates of Occupancy<\/li>\n<li>Seller\u2019s Counsel\u2019s Certification<\/li>\n<li>Seller\u2019s Title Insurance Certification<\/li>\n<li>Survey Certificate<\/li>\n<li>Value Add Student Housing Debt Service Reserve Rider to Loan Agreement<\/li>\n<\/ul>\n<p>You can find the full library of required documents at the <a href=\"https:\/\/mf.freddiemac.com\/lenders\/legal\/loan-documents.html\" target=\"_blank\" rel=\"noopener noreferrer\">Freddie Mac website.<\/a><\/p>\n<h2>Is a Freddie Mac Multifamily Loan Right for Me?<\/h2>\n<p>The same considerations apply to Freddie Mac and Fannie Mae. See the Assets America discussion <a href=\"https:\/\/assetsamerica.com\/fannie-mae-multifamily-loans\/\">here<\/a>.<\/p>\n<h2>How the Process Works<\/h2>\n<p>Although there are many documents to complete, the actual process has just a few main steps:<\/p>\n<ol>\n<li>Contact a lender authorized to make Freddie Mac multifamily loans.<\/li>\n<li>Discuss the various programs available and study the term sheets of each one that interests you.<\/li>\n<li>See if you prequalify for a Freddie Mac multifamily loan. You\u2019ll have to submit the following:\n<ol>\n<li>Current Rent Roll\/Occupancy Report (with move-in and lease-end dates)<\/li>\n<li>Interior\/Exterior Photos of the Property (or property website)<\/li>\n<li>Personal Financial Statement (including a schedule of real estate owned)<\/li>\n<li>Real Estate Resume (if you don\u2019t currently own multifamily properties)<\/li>\n<li>Trailing 12 Month Operating Statement<\/li>\n<\/ol>\n<\/li>\n<li>If you decide to apply, make a due diligence deposit (typically up to $15,000) to pay for:\n<ol>\n<li>Appraisal<\/li>\n<li>Environmental engineering report<\/li>\n<li>Structural engineering report<\/li>\n<li>Zoning report<\/li>\n<li>All lender and agency inspections<\/li>\n<li>Title search<\/li>\n<\/ol>\n<\/li>\n<li>Submit all the required forms.<\/li>\n<li>If you receive approval, schedule the closing. It usually takes about 45 to 60 days to close on a Freddie Mac multifamily loan.<\/li>\n<li>Prepare for the closing, where you\u2019ll likely spend up to another $10,000 or more on the following:\n<ol>\n<li>Legal costs<\/li>\n<li>Securitization costs<\/li>\n<li>Origination fees<\/li>\n<\/ol>\n<\/li>\n<li>Close on the loan.<\/li>\n<\/ol>\n<h3>Video:\u00a0 Freddie Mac Multifamily Transaction Managers<\/h3>\n<p><noscript><iframe loading=\"lazy\" title=\"Freddie Mac Multifamily Transaction Managers\" width=\"840\" height=\"473\" src=\"https:\/\/www.youtube.com\/embed\/_ofODfu7GqI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/noscript><\/p>\n<h2>Frequently Asked Questions<\/h2>\n<h3>What is the origination fee on Freddie Mac multifamily loans?<\/h3>\n<p>Typically, the origination fee on a Freddie Mac multifamily loan is at least 1%. Application fees may exceed $20,000, and there are more closing costs as well. The lender sets the origination fee.<\/p>\n<h3>What can I change on the Freddie Mac documents?<\/h3>\n<p>Naturally, you can fix any incorrect information you put on a Freddie Mac document. In addition, you may want to change some of the loan terms, such as fixed vs adjustable rate, loan term, and loan amount.<\/p>\n<h3>Does Freddie Mac own my loan?<\/h3>\n<p>Typically, Freddie Mac would not own a Freddie Mac loan. You can go onto the Freddie Mac website and use its self-service loan look-up tool. Normally, the sponsor will be pool and securitize your loan.<\/p>\n<h3>What aspects of the loan can you negotiate?<\/h3>\n<p>You may be able to negotiate the prepayment penalty aspects of your loan. In addition, you may be able to demonstrate you have the required experience even if it\u2019s a marginal call. Your lender will let you know which items are negotiable and which aren\u2019t.<\/p>\n<h2>Related Articles<\/h2>\n<p>\u00a0<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Freddie Mac Multifamily Loans \u2013 The Perfect Introduction \u00a0May 25, 2020 The Federal Home Loan Mortgage Corporation (Freddie Mac) is one of the largest players in the multifamily finance segment. It is a government-sponsored entity (GSE) similar to Fannie Mae. However, Freddie works with mortgages from smaller banks (\u201cthrifts\u201d) while Fannie deals with large banks. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":126889,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[99],"tags":[55466,14570,11404,11553,17653,1277],"dealstore":[],"offerexpiration":[],"class_list":["post-126888","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-freddie","tag-introduction","tag-loans","tag-mac","tag-multifamily","tag-perfect"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Freddie Mac Multifamily Loans \u2013 The Perfect Introduction - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=126888\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction \u00a0May 25, 2020 The Federal Home Loan Mortgage Corporation (Freddie Mac) is one of the largest players in the multifamily finance segment. It is a government-sponsored entity (GSE) similar to Fannie Mae. However, Freddie works with mortgages from smaller banks (\u201cthrifts\u201d) while Fannie deals with large banks. [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fivemor.com\/?p=126888\" \/>\n<meta property=\"og:site_name\" content=\"Som2ny Network\" \/>\n<meta property=\"article:published_time\" content=\"2025-03-11T19:02:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/multifamily.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1366\" \/>\n\t<meta property=\"og:image:height\" content=\"438\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"14 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/fivemor.com\/?p=126888#article\",\"isPartOf\":{\"@id\":\"https:\/\/fivemor.com\/?p=126888\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371\"},\"headline\":\"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction\",\"datePublished\":\"2025-03-11T19:02:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/fivemor.com\/?p=126888\"},\"wordCount\":2899,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/fivemor.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/?p=126888#primaryimage\"},\"thumbnailUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/multifamily.jpg\",\"keywords\":[\"Freddie\",\"Introduction\",\"Loans\",\"Mac\",\"Multifamily\",\"Perfect\"],\"articleSection\":[\"Real Estate\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/fivemor.com\/?p=126888#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fivemor.com\/?p=126888\",\"url\":\"https:\/\/fivemor.com\/?p=126888\",\"name\":\"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction - Som2ny Network\",\"isPartOf\":{\"@id\":\"https:\/\/fivemor.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/fivemor.com\/?p=126888#primaryimage\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/?p=126888#primaryimage\"},\"thumbnailUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/multifamily.jpg\",\"datePublished\":\"2025-03-11T19:02:13+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/fivemor.com\/?p=126888#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/fivemor.com\/?p=126888\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fivemor.com\/?p=126888#primaryimage\",\"url\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/multifamily.jpg\",\"contentUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/multifamily.jpg\",\"width\":1366,\"height\":438},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/fivemor.com\/?p=126888#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/fivemor.com\/?bp_activities=1\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/fivemor.com\/#website\",\"url\":\"https:\/\/fivemor.com\/\",\"name\":\"Som2ny Network\",\"description\":\"Daily Deals\",\"publisher\":{\"@id\":\"https:\/\/fivemor.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/fivemor.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/fivemor.com\/#organization\",\"name\":\"Som2ny Network\",\"url\":\"https:\/\/fivemor.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png\",\"contentUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png\",\"width\":300,\"height\":86,\"caption\":\"Som2ny Network\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png\",\"caption\":\"admin\"},\"sameAs\":[\"https:\/\/fivemor.com\"],\"url\":\"https:\/\/fivemor.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction - Som2ny Network","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fivemor.com\/?p=126888","og_locale":"en_US","og_type":"article","og_title":"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction - Som2ny Network","og_description":"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction \u00a0May 25, 2020 The Federal Home Loan Mortgage Corporation (Freddie Mac) is one of the largest players in the multifamily finance segment. It is a government-sponsored entity (GSE) similar to Fannie Mae. However, Freddie works with mortgages from smaller banks (\u201cthrifts\u201d) while Fannie deals with large banks. [&hellip;]","og_url":"https:\/\/fivemor.com\/?p=126888","og_site_name":"Som2ny Network","article_published_time":"2025-03-11T19:02:13+00:00","og_image":[{"width":1366,"height":438,"url":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/multifamily.jpg","type":"image\/jpeg"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"14 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/fivemor.com\/?p=126888#article","isPartOf":{"@id":"https:\/\/fivemor.com\/?p=126888"},"author":{"name":"admin","@id":"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371"},"headline":"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction","datePublished":"2025-03-11T19:02:13+00:00","mainEntityOfPage":{"@id":"https:\/\/fivemor.com\/?p=126888"},"wordCount":2899,"commentCount":0,"publisher":{"@id":"https:\/\/fivemor.com\/#organization"},"image":{"@id":"https:\/\/fivemor.com\/?p=126888#primaryimage"},"thumbnailUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/multifamily.jpg","keywords":["Freddie","Introduction","Loans","Mac","Multifamily","Perfect"],"articleSection":["Real Estate"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/fivemor.com\/?p=126888#respond"]}]},{"@type":"WebPage","@id":"https:\/\/fivemor.com\/?p=126888","url":"https:\/\/fivemor.com\/?p=126888","name":"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction - Som2ny Network","isPartOf":{"@id":"https:\/\/fivemor.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/fivemor.com\/?p=126888#primaryimage"},"image":{"@id":"https:\/\/fivemor.com\/?p=126888#primaryimage"},"thumbnailUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/multifamily.jpg","datePublished":"2025-03-11T19:02:13+00:00","breadcrumb":{"@id":"https:\/\/fivemor.com\/?p=126888#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/fivemor.com\/?p=126888"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fivemor.com\/?p=126888#primaryimage","url":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/multifamily.jpg","contentUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/multifamily.jpg","width":1366,"height":438},{"@type":"BreadcrumbList","@id":"https:\/\/fivemor.com\/?p=126888#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/fivemor.com\/?bp_activities=1"},{"@type":"ListItem","position":2,"name":"Freddie Mac Multifamily Loans \u2013 The Perfect Introduction"}]},{"@type":"WebSite","@id":"https:\/\/fivemor.com\/#website","url":"https:\/\/fivemor.com\/","name":"Som2ny Network","description":"Daily Deals","publisher":{"@id":"https:\/\/fivemor.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/fivemor.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/fivemor.com\/#organization","name":"Som2ny Network","url":"https:\/\/fivemor.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fivemor.com\/#\/schema\/logo\/image\/","url":"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png","contentUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png","width":300,"height":86,"caption":"Som2ny Network"},"image":{"@id":"https:\/\/fivemor.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fivemor.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png","caption":"admin"},"sameAs":["https:\/\/fivemor.com"],"url":"https:\/\/fivemor.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/posts\/126888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126888"}],"version-history":[{"count":0,"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/posts\/126888\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/media\/126889"}],"wp:attachment":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126888"},{"taxonomy":"dealstore","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fdealstore&post=126888"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fofferexpiration&post=126888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}