New Offering: Moderate Rehab Loans
October 16, 2015
Update December 2, 2105
Freddie Mac announced today that it has a new offering: Moderate Rehab Loans, providing our customers with a flexible liquidity source for properties undergoing significant renovation.
Here are a couple highlights of our new offering:
- Loan terms: Deal specific/negotiated; interest-only during renovation
- Eligible property types: $25,000-$50,000 in renovations per unit with a minimum of $7,500 per unit in interior work
- Loan proceeds/draws during the rehabilitation period: Fund up to 80% of property acquisition price followed by periodic draws of unfunded loan proceeds (as opposed to an escrow) to reimburse the sponsor for up to 80% of the renovation costs on a monthly or quarterly basis, as work is completed, similar to construction financing.
Please note that Program Plus® Sellers and sponsors must be approved for this offering, depending on their rehabilitation experience and familiarity with our process.
For More Information
To become approved, reach out to your Production contact in your regional office.