9% LIHTC Mortgage
Financing for affordable multifamily properties that have received a 9% LIHTC allocation
Targeted Affordable Housing Offerings
- Bond Credit Enhancement – 4% LIHTC
- Bond Credit Enhancement With Other Affordability Components
- 9% LIHTC Mortgage
- Cash Mortgages With Other Affordability Components
- Moderate Rehabilitation
- Tax-Exempt Bond Securitization (TEBS)
- Fixed and Variable Liquidity Pricing
At-a-Glance Comparison
| Product Summary | Forward Commitment | Immediate Funding | Moderate Rehabilitation |
|---|---|---|---|
| Product Description | Forward commitment for new construction or substantial rehabilitation of affordable multifamily properties with 9% LIHTC | Financing for the acquisition or refinance of stabilized affordable multifamily properties with 9% LIHTC | Financing for the moderate rehabilitation (with tenants in place) of affordable multifamily properties with 9% LIHTC |
| Type of Funding | Funded construction financing available; permanent financing at conversion | Permanent financing | Financing for acquisition/rehabilitation; based on projected post-rehab NOI; cash or letter of credit collateral required to fund gap between supportable debt on current NOI and mortgage amount (collateral held until stabilization). Interest only during the moderate rehabilitation period. |
| Eligible Properties | To-be-built or substantially rehabilitated garden, mid-rise or high-rise multifamily properties that received a 9% tax credit allocation | Garden, mid-rise or high-rise multifamily properties with 9% LIHTC with 85% occupancy for 90 days | Garden, mid-rise or high-rise multifamily properties with 9% LIHTC undergoing moderate rehabilitation with tenants in place |
| Minimum Debt Coverage Ratio | 1.15x (1.10x w/ HUD Risk Sharing) Cash-out Refinance: 1.20x (1.15x w/ HUD Risk Sharing) |
1.15x (1.10x w/ HUD Risk Sharing) Cash-out Refinance: 1.20x (1.15x w/ HUD Risk Sharing) |
1.15x (1.10x w/ HUD Risk Sharing) Cash-out Refinance: 1.20x (1.15x w/ HUD Risk Sharing) |
| Maximum Loan-to-Value | 90% of market value | 90% of market value | 90% of market value |
| Loan Term | Minimum term: lesser of 15 years or the remaining LIHTC compliance period. Maximum term: 35 years. | Minimum term: lesser of 15 years or the remaining LIHTC compliance period. Maximum term: 35 years. | Minimum term: lesser of 15 years or the remaining LIHTC compliance period. Maximum term: 35 years. Rehabilitation and stabilization period (max 24 months) will be included in loan term. |
| Construction Loan Term | Maximum forward commitment term: 36 months plus a free 6-month extension during construction period | NA | NA |
| Maximum Amortization | 35 years | 35 years | 35 years |
| Prepayment Provisions | Yield Maintenance | Yield Maintenance | Yield Maintenance |
| Subordinate Financing | Permitted per the TAH Guide | Permitted per the TAH Guide | Permitted per the TAH Guide |
| Tax and Insurance Escrows | Required per the TAH Guide | Required per the TAH Guide | Required per the TAH Guide |
| Fees | Refer to Exhibit 11: TAH Fee Schedule, in the TAH Guide | Refer to Exhibit 11: TAH Fee Schedule, in the TAH Guide | Refer to Exhibit 11: TAH Fee Schedule, in the TAH Guide |
| Securitization Available | No | Yes, please refer to the Capital Markets ExecutionSM Term Sheet for securitization requirements | Yes, please refer to the Capital Markets ExecutionSM Term Sheet for securitization requirements |
Contact Us
- Download and print Freddie Mac's contact information
PDF Version
- Download the 9% LIHTC Mortgage term sheet.
The information in this document is not a replacement or substitute for information found in the Delegated Underwriting for Targeted Affordable HousingSM Guide on AllRegs. Terms set forth herein are subject to change without notice.