Fixed-Rate Mortgage
Offers a flexible financing solution for the acquisition or refinance of multifamily housing properties
Key Benefits
- Provides, in most cases, a streamlined, yet still flexible, path to funding.
- Offers Borrowers a variety of options to suit their loan characteristics and to only pay for what they need.
At-a-Glance
| Fixed-Rate Mortgage Options and Requirements for our Capital Markets ExecutionSM (CME) | |
|---|---|
| Eligible Products | Standard multifamily housing, purpose-built student housing, seniors housing, cooperative housing, and Targeted Affordable Housing cash (e.g., LIHTC Year 4-10 and 11-15, Section 8) mortgages; conventional structured transactions. |
| Borrowing Entity |
|
| Loan Size | Generally $5 to $100 million (larger and smaller loans will be considered) |
| Loan Terms | 5- to 10-year terms (up to 30 years if using our portfolio execution) |
| Maximum Amortization | 30 years |
| Amortization Calculations | Actual/360 standard; 30/360 available |
| Lockout Period | 2 years |
| Prepayment Provisions | Yield maintenance until securitized followed by 2-year lockout; defeasance thereafter. No prepayment premium for final 90 days. If loan is not securitized within first year, then yield maintenance applies for the life of the loan. Yield maintenance is available for securitized loans for an additional cost. |
| Tax & Insurance Escrow | Generally required |
| Replacement Reserve Deposit | Generally required |
| Recourse Requirements | Non-recourse except for standard carve-out provisions |
| Supplemental Loan Availability | Yes, subject to requirements specified in the CME Loan Agreement |
| Application Fee | Greater of $2,000 or 0.1% of loan amount |
| Early Rate-Lock Options | Available for extended periods; Sellers should consult with their regional Freddie Mac representative to determine eligibility |
Loan-to-Value (LTV) Ratios and Amortizing1 Debt Coverage Ratios (DCRs)
| Fixed-Rate Base Conventional Maximum LTV and Minimum DCR2 | (For specific product adjustments, refer to individual term sheet) | ||
|---|---|---|---|
| Amortizing | Partial- Term Interest-Only3 | Full-Term Interest-Only | |
| Acquisitions | |||
| > 5-Year and < 7-Year Term | 70% / 1.30x | Ineligible | 60% / 1.45x |
| 7-Year Term | 80% / 1.25x | 80% / 1.25x | 65% / 1.40x |
| > 7-Year Term4 | 80% / 1.25x | 80% / 1.25x | 65% / 1.40x |
| Refinances with No Cash Out | |||
| > 5-Year and < 7-Year Term | 70% / 1.30x | Ineligible | 60% / 1.45x |
| 7-Year Term | 80% / 1.25x | Ineligible | 65% / 1.40x |
| > 7-Year and Term4 | 80% / 1.25x | 80% / 1.25x | 65% / 1.40x |
| Cash-Out Refinances | |||
| > 5-Year and < 7-Year Term | 65% / 1.35x | Ineligible | 60% / 1.50x |
| 7-Year Term | 75% / 1.30x | Ineligible | 60% / 1.45x |
| > 7-Year Term4 | 75% / 1.30x | 75% / 1.30x | 60% / 1.45x |
1 The DCR calculated for the partial-term interest-only and full-term interest-only period uses an amortizing payment.
2 Adjustments may be made depending on the property, product, and/or market.
3 For partial-term interest-only loans, there must be a minimum amortization period of 7 years for loans with terms greater than 7-years. Acquisition loans with 7-year terms may have up to 1 year of partial-term interest-only. For terms of 10years or more, Sellers should contact their Freddie Mac representative to determine the allowable term of partial-term interest-only.
4 The maximum term for loans using our Capital Markets Execution is 10 years; terms of greater than 10 years are available for loans using our portfolio execution.
- Contact Us
- Download the Fixed-Rate Mortgage term sheet.
The information in this document is not a replacement or substitute for information found in the Freddie Mac Multifamily Seller/Servicer Guide. Terms set forth herein are subject to change without notice.