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We Refined Our Moderate Rehab Offering

February 16, 2017

We introduced the Freddie Mac Multifamily Moderate Rehab loan in October 2015 and have funded more than $900 million since then. Along the way we gained loads of experience that prompted us to make some product and process refinements. We have clarified the following:

  • Renovation limit increased to $60,000 per unit
  • Term:
    • Interim Phase: Between 2 and 3 years
    • Permanent Phase: 7 or 10 years
  • Renovation Timing:
    • Up to 33 months (assuming 3-year Interim Phase)
    • All units must be habitable within 6 months of conversion
    • All renovations must be completed within 3 months of conversion
  • Replacement Reserves
    • Deferred during Interim Phase
  • Repairs:
    • Priority Repairs, Operational Repairs and Green Improvements can be included within the renovation budget and have escrows waived.
  • Appraisal:
    • Two values: As-Is and As-If Stabilized Today
    • Removed the Future As-Stabilized Value
  • Clarification around Additional Documentation Requirements

More resources are to the right of this article.

We look forward to working with you on more Moderate Rehab loans.