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
- 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
- Priority Repairs, Operational Repairs and Green Improvements can be included within the renovation budget and have escrows waived.
- 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.
- The Moderate Rehab Loan term sheet
- Moderate Rehab Best Practices: Seller Sizing and Submission
- Moderate Rehab Best Practices: Appraisals
- Moderate Rehab Best Practices: Property Condition Due Diligence
- Moderate Rehab Best Practices: Servicing, Renovation Monitoring and Draws
- Choose the Rehab Loan That Fits! flyer