Freddie Mac Fixed-Rate Mortgages
Freddie Mac offers a variety of conventional fixed-rate mortgage products including amortizing, interest-only, partial interest-only, and fixed-to-float mortgages.* You also get certainty of execution and a special focus on customer relationships, including outstanding service after sale. Whatever your business needs, we have the flexible financing solutions you seek. We invite you to talk to one of our Freddie Mac Multifamily Seller/Servicers to find out why you can expect more from Freddie Mac on your next deal.
Key Benefits
- Versatile terms and amortization schedules.
- Under the enhanced version of the Freddie Mac Interest-Only Fixed-Rate product, we're allowing better terms for certain acquisition transactions with above average sponsorship, market, property, and rent growth prospects.
- The Freddie Mac Fixed-to-Float option provides an optional extension year after the original term with a floating rate that allows additional flexibility at maturity.*
At-a-Glance Comparison
Product Summary |
Full Fixed-Rate Amortizing |
Full Term Interest-Only (IO) |
Partial IO |
| Standard Loan Terms |
5, 7, 10, 15, 20, 25, 30
|
15 years max for 30-year term |
7- to 15-yr. term: 5 yrs. max
less than 7-yr. term: 4 yrs. max |
| Fixed-to-Float Option |
Extends above loan terms by 1 year @ a floating rate, 5- to 15-year terms only |
15 years max |
7- to 15-yr. term: 5 yrs. max
less than 7-yr. term: 4 yrs. max |
| Maximum Loan-to-Value |
80% |
Standard
70%: less than or equal to 10-yr. term
65%: greater than 10- to 15-yr. term
|
Standard
80%: 5 yrs. max 7- to 15-yr. term
75%: 4 yrs. max less than 7-yr. term |
Enhanced
70%: 7- to 10-yr. term
75%: less than 7-yr. term |
Enhanced
Same as standard |
| Minimum Debt Coverage Ratio |
1.20x |
Standard
less than or equal to 10-yr. term:1.20x amortizing
greater than 10- to 15-yr. term:1.45x amortizing
|
Standard
1.20x amortizing
|
Enhanced
7- to 10-yr. term: 1.15x amortizing
less than 7-yr. term: 1.20x amortizing |
Enhanced
1.15x amortizing |
| Prepayment Options |
Yield Maintenance |
Same |
Same |
| Supplemental Financing |
Yes – after 12 mos. and more than 2 yrs. term remaining and can be coterminous or non-coterminous with first mortgage |
Same |
Same |
Replacement
Reserve Escrow |
Generally not required |
Same |
Same |
Tax and Insurance
Escrow |
Generally required |
Same |
Same |
| Recourse |
Non-recourse except carveouts |
Same |
Same |
Early Rate-Lock
Available |
Yes |
Same |
Same |
*Float-to-Fixed also available: see the Freddie Mac term sheets.
|
