Freddie Mac Streamlined Acquisition Financing^SM

The Freddie Mac Streamlined Acquisition Financing product is available for any property that is being purchased and is currently financed by a Freddie Mac Multifamily mortgage. The advantages of choosing Streamlined Acquisition Financing are as follows:

• Reduced documentation and lower costs including possibly:
  • No appraisal
  • No engineering report
  • No environmental report
  • Reduced property financial documentation
• Speedy loan review and approval. Streamlined Acquisitions can be completed in about half the time it would take to originate most new loans.

Freddie Mac may provide an economic incentive to the new borrower to induce it to finance the acquisition with Freddie Mac. The amount of the economic benefit will be directly related to the amount of prepayment premium waiver (if any) that Freddie Mac would have waived for the existing borrower (were it to refinance under the Streamlined Refinance option). The economic incentive will be in the form of a buyup at purchase or a reduced spread.

Eligible Loans

Mortgages financing a property that is currently financed by a mortgage owned by Freddie Mac

Eligible Properties

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

Eligible Borrowers

Standard borrower eligibility criteria

Eligible Seller/Servicers

Program Plus® Seller/Servicers

Minimum New Loan

$300,000

Maximum New Loan

$50 million

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 Loan-to-Value (LTV)

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

Minimum Debt Coverage Ratio (DCR)

1.25x; 1.50x for interest-only

Recourse Requirements

Nonrecourse except for standard carve-out provisions

Third-Party Reports

• May be required if the following is true:
  • Property is on Asset Management's watchlist.
  • A physical assessment has not been performed for over 1 year.
• In addition, please note the following:
  • 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 Unpaid Principal Balance (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 Seller/Servicers 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

Prepayment Fees

Freddie Mac may provide economic incentive of up to 1% of the current UPB following the expiration of the yield maintenance period, if the loan is not held in a securitized pool.

Early Rate-Lock Delivery Option

Available for loans equal to or greater than $2.5 million

Replacement Reserves

Reserves generally not funded. Borrower signs our standard replacement reserve agreement at loan closing.

Servicing Fees

Sliding scale between 0.2% and 0.03%, based upon actual loan amount.