Freddie Mac HUD Risk Sharing Requirements

Quick Reference

Mortgage

• Loan Size:  $750,000 to $25 million
• 18- to 30-year terms
• Fixed-rate loans only
• Maximum amortization of 30 years
• Option for balloon payment at any time after year 18 with level monthly payments amortized over not more than 30 years
• Fee simple/whole loans
• LTV up to 90% (for nonbond forwards) and 85% (for bond forwards)
• DCR minimum of 1.10x (for nonbond forwards) and 1.15x (for bond forwards)
• Must meet affordability guidelines for affordable housing set-asides for at least 15 years:
  • 20% of units affordable to families earning 50% or less of area median income; or
  • 40% of units affordable to families earning 60% or less of area median income
• No FHA or other federal insurance

Property

• Cannot be located in a FEMA-mapped Special Flood Hazard Area/100-year flood plain, within a Coastal Barrier Resources System or in a Runway Clear Zone
• Must have received a subsidy-layering certification from HUD or an appropriate housing credit agency
• Must comply with the Lead-Based Paint Poisoning Prevention Act

Mortgage Seller

• Must confirm that project principals do not appear on the GSA List of Parties Excluded from Federal Procurement or Nonprocurement Programs
• If a HUD-approved lender, seller must not have received any notice that HUD has determined that the seller has committed acts that are grounds for administrative action