Freddie Mac Streamlined Refinance

Freddie Mac’s Streamlined Refinance product is available for any Freddie Mac-purchased multifamily mortgage in good standing. The advantages of choosing streamlined refinancing are:

• Reduced documentation and lower costs
  • No appraisal
  • No engineering reports
  • No environmental reports
  • Reduced borrower documentation
  • Reduced property financial documentation
    
• Speedy loan review and approval. Streamlined refinances can be completed in about half the time it would take to originate a new loan.
• No cash required for the good faith deposit.  Borrowers can deliver a note secured by a second mortgage on the property for the good faith deposit when using the Early Rate Lock delivery execution.

Eligible Loans

Existing Freddie Mac multifamily loans that are investment quality with satisfactory payment history.

• No existing monetary or nonmonetary defaults
• No 30-day delinquencies within the past 12 months
• No more than two 30-day delinquencies or one 60-day delinquency over the mortgage term

Eligible Properties

Well-maintained garden, mid-rise, and high-rise apartments and cooperatives with minimum occupancies of 90% for 90 consecutive days.

Eligible Borrowers

Original borrower or approved transferee of existing loan

Eligible Seller/Servicers

Program Plus® seller/servicers may refinance loans within their portfolio only. Seller/servicers may refinance loans from their portfolios regardless of property location.

Minimum New Loan

$300,000

Maximum New Loan

$50 million

Cash Out to Borrower

Permitted; not to exceed maximum LTV

Subordinate Financing

Generally not allowed

Loan Term

5 to 30 years

Maximum Amortization

30 years (For loans less than $1 million, standard maximum is 25 years, with 30-year amortization permitted on a case-by-case basis)

Maximum LTV

80% standard; 75% for loans with terms less than 7 years; 70% for interest-only

Minimum DCR

1.25x; 1.50x for interest-only

Recourse Requirements

Nonrecourse except for standard carve-out provisions

Third-Party Reports

• Appraisal
  Not required unless:
  • New loan is in excess of $20 million
  • New loan is between $5 million and $20 million and exceeds 135% of the current loan’s UPB
  • Property location, occupancy, condition and/or market conditions justify requiring an appraisal as determined by Freddie Mac
    
    
• Engineering Report
  Not required unless property exhibits deferred maintenance or other adverse conditions.
  
  
• Environmental Report
  Not required unless:
  • No previous environmental report acceptable to Freddie Mac has been prepared
  • An existing environmental hazard or condition exists

Property Inspections

• Delegated to Program Plus lenders for loans under $5 million with proposed LTVs equal to or less than 70%.
• If deferred maintenance or other property conditions warrant, Freddie Mac may inspect the property before rate-lock or commitment.

Transfers/Assumptions

Transfers/assumptions allowed during life of loan with Freddie Mac’s approval

Tax and Insurance Escrow

Generally required

Pricing

Risk-based pricing

Short-Term Extension Fees

One-time fee of 0.25% for 3 months or 0.5% for 6 months, payable to Freddie Mac

Application Fee

Greater of $2,000 or 0.1% of loan amount