Enhanced Lease-Up Loan Offering
April 14, 2015
We are changing the names of our Lease-Up Loans to Refinance Lease-Up Loan and Acquisition Lease-Up Loan. Also, we have added benefits for premier sponsors across both tracks.
- Targeted Affordable Housing (TAH) cash and bond loans are now eligible
- Updated maximum LTVs and minimum DCRs:
- Refinance Lease-Up: 75% / 1.30x
- Acquisition Lease-Up: 70% / 1.30x
- Minimum new cash equity requirements:
- Refinance Lease-Up: 15%
- Acquisition Lease-Up: 30%
Please note that sponsors must have experience with new construction and/or lease-up properties, and generally strong financial capacity and real estate management expertise with good performance and credit history. Premier sponsors must be approved by Freddie Mac underwriting management.
For funding, at least 65% of the units must be occupied, at least 75% of the units must be leased, and all Certificates of Occupancy must be issued.
For additional information, see the updated Lease-Up Loan term sheet on FreddieMac.com. Or, for more information, contact your Freddie Mac production or underwriting representative.