Freddie Mac Streamlined Financing Options
Offers two streamlined options to refinance or acquire a loan owned by Freddie Mac
Key Benefits
- Speedy review and approval process, reducing time to loan origination
- No cash is required for the good faith deposit
- Reduced documentation and lower costs
At-a-Glance Comparison
| Product Summary | Streamlined Refinance | Streamlined Acquisition FinancingSM | |
|---|---|---|---|
| Purpose | For borrowers who want to refinance their existing Freddie Mac loan | For borrowers who are acquiring a property that is already owned by Freddie Mac | |
| Eligible Loans | Existing Freddie Mac loans with:
|
Mortgages financing a property that is currently financed by a mortgage owned by Freddie Mac | |
| Eligible Borrowers | Original borrower or approved transferee of existing loan | Partnership (general or limited), corporation, trust, joint venture, limited liability company or individual | |
| Prepayment Fees on Existing Loans | If the loan is not held in a securitized pool, Freddie Mac may agree to waive that portion of the exit or prepayment fee that may equal up to one percent (1%) of the outstanding principal balance of the loan, if the borrower refinances with Freddie Mac | If the loan is not held in a securitized pool, Freddie Mac may provide economic incentive to the new borrower of up to 1% of the current unpaid principal balance to induce it to finance the acquisition with Freddie Mac | |
Loan-to-Value Ratio and Amortizing1 Debt Coverage Ratio
| Base Conventional LTV and DCR | Fixed-Rate LTV/DCR | Adjustable-Rate LTV/DCR2 (DCR at max note rate) | ||||
|---|---|---|---|---|---|---|
| Amortizing | Partial Interest-Only | Interest-Only (using amortizing payment) | Amortizing | Partial Interest-Only | Interest-Only (using amortizing payment) | |
| Streamlined Acquisition Financing | ||||||
| = 7 Year Term | 80% / 1.25x | 80% / 1.25x | 65% / 1.30x | 80% / 1.05x | 80% / 1.05x | 65% / 1.10x |
| < 7 Year Term | 70% / 1.30x | 60% / 1.35x | 65% / 1.35x | 70% / 1.05x | 60% / 1.10x | 60% / 1.10x |
| Streamlined Refinance – Cash-Out | ||||||
| = 7 Year Term | 75% / 1.30x | 75% / 1.30x | 60% / 1.35x | 75% / 1.10x | 75% / 1.10x | 60% / 1.15x |
| < 7 Year Term | 65% / 1.35x | 60% / 1.40x | 60% / 1.40x | 65% / 1.10x | 60% / 1.15x | 60% / 1.15x |
1 The debt coverage ratio (DCR) calculated for the Partial Interest-Only and Interest-Only period uses an amortizing payment.
2 If the streamlined mortgage is an adjustable-rate mortgage (ARM), ARM loan-to-value, debt coverage ratio rate-lock and prepayment options will apply
Contact Us
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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.