Freddie Mac Multifamily Loan Rates

A Freddie Mac Multifamily Loan presents excellent financing options to investors seeking multifamily loans. The program offers fixed-rate and floating-rate loans for the acquisition or refinancing of various multifamily properties. These loans cater to market-rate apartments, student housing, senior housing, and affordable housing. While Freddie Mac has traditionally been a leading financing source for larger apartment loans, Fannie Mae used to dominate the smaller balance market. However, in 2014, Freddie Mac introduced the Freddie Mac Small Balance Multifamily Loan program to compete in that segment. Freddie Mac multifamily loans provide favorable terms and rates in the market, but qualifying requires meeting high standards set by Freddie Mac. Borrowers typically need to meet net worth and liquidity thresholds, while properties must demonstrate cash flow with a minimum 90% occupancy for 90 days.Benefits of Freddie Mac Multifamily Loans:

  • Starting rates as low as 4.99%.
  • Working with a commercial mortgage broker boasting over 30 years of lending experience.
  • No upfront application or processing fees.Simplified application process.
  • Up to 80% loan-to-value (LTV) on multifamily properties.
  • Terms and amortizations extending up to 30 years.
  • Loans available for purchase, refinance, and cash-out.
  • Written pre-approvals within 24 hours, with no cost or obligation.
  • Top Freddie Mac Multifamily Loan Options for 2022:
  • The Freddie Mac multifamily loan program offers numerous advantageous features for
  • apartment purchases and refinances, with a minimum loan size of $1,500,000.
  • The loan application process is straightforward and streamlined, eliminating the need for tax returns from the borrower and property. Typically, loans close within 45 days, and the program entails lower costs compared to other government or agency programs.
  • These apartment building loans are non-recourse, meaning the borrower isn't personally liable for payments (except for standard bad-boy carve-outs). Prepayment penalties offer flexibility, ranging from yield maintenance to soft step down. One outstanding feature of these multifamily loans is the 45-day free rate hold offered by Freddie Mac, ensuring the loan rate remains secure even if rates change during the processing period.

Freddie Mac Multifamily Loan:Freddie Mac Multifamily Loans have a publicly stated mission to maintain stability in the American housing-mortgage markets and promote affordable housing. They support investors in purchasing, refinancing, preserving, and renovating multifamily and apartment buildings. A significant portion of properties financed by Freddie Mac are more than a decade old, requiring substantial improvements and facing challenges in securing financing from other lenders. Affordable housing remains a key focus for Freddie Mac, with around 90% of their apartment loans written for properties with affordable rents based on local area median income. To address the increasing demand for affordable apartment units, Freddie Mac designed programs aimed at financing apartment buildings affordable to renters with lower annual incomes. They also provide apartment building loans for subsidized housing, assisting individuals with very low incomes. Through these programs, Freddie Mac's multifamily loan programs play a crucial role in ensuring Americans have access to affordable housing nationwide.Freddie Mac Multifamily Loan:One potential complexity with Freddie Mac multifamily loans is that they are not directly originated by Freddie Mac themselves. Instead, authorized lenders within their Optigo network underwrite and service the loans. While outside lenders may finance these apartment loans, they must adhere to Freddie Mac guidelines. Although Freddie Mac offers loans in various markets and situations, each Optigo lender may have limitations on the eligible deals they are willing to finance. At Select Commercial Funding, we have access to a wide range of Freddie Mac funding solutions, enabling us to connect you with the right Freddie Mac lenders based on your specific needs.Freddie Mac Small Balance Multifamily Loans:Freddie Mac Small Balance Multifamily Loans program offers unique and beneficial features for apartment purchases and refinances, with a minimum loan size of $1,500,000. The loan application process is simple and streamlined, without the need for tax returns from the borrower and the property. Loans typically close within 45 days, and the program boasts lower costs compared to other government or agency programs. These loans are non-recourse, relieving borrowers from personal payment guarantees. Prepayment penalties are flexible, offering options such as yield maintenance or soft stepdown. One standout feature is the free rate hold for 45 days from application, providing borrowers protection against rate fluctuations during the processing period.Freddie Mac Fixed Rate Conventional Loan presents multifamily investors with attractive financing and loan terms. It can be utilized for standard multifamily properties, student housing, seniors housing, cooperative housing developments, and targeted affordable housing properties, including Section 8 housing. These loans are non-recourse, except for standard bad boy carve outs, eliminating the need for personal guarantees from investors. The program offers flexible terms and amortizations of up to 30 years, accommodating financing needs up to $100 million.If you're an investor seeking a highly flexible floating rate loan with competitive interest rates, the Freddie Mac Floating Rate program might be suitable for you. This program finances multifamily loans starting from $5 million, allowing up to 80% loan-to-value (LTV) ratio, with terms of up to 10 years and amortization periods of up to 30 years. Freddie Mac Floating-Rate Multifamily Loans offer some of the lowest interest rates in the market and can be effectively used as bridge loans due to their flexible prepayment penalties. These loans are available for various property types, including standard multifamily housing, manufactured housing communities, seniors housing, and Targeted Affordable Housing properties. Notably, these loans are typically non-recourse and facilitate both the purchase and refinancing of multifamily properties.Freddie Mac Moderate Rehab Multifamily Loan provides investors with funds to renovate their apartment buildings at minimal costs. During the renovation process, borrowers can take out an interest-only floating-rate loan, with interest only accruing on the utilized funds. This program offers negotiable and versatile loan terms, catering to investors planning to invest between $25,000 and $60,000 per unit in property improvements. It finances up to 80% loan-to-value (LTV) of the property's as-is value, provides flexible terms and amortizations, and offers an interest-only period of up to 36 months during rehabilitation. Freddie Mac Moderate Rehab Multifamily Loans offer experienced sponsors a flexible liquidity option, provided they have successfully completed similar rehabilitation projects and are familiar with Freddie Mac's loan process.Freddie Mac Student Housing Value Add Multifamily Loans cater to student housing properties requiring light repairs. This loan program offers financing solutions specifically designed for student housing developments with planned repairs ranging between $10,000 and $25,000 per unit. Noteworthy loan terms include up to 85% loan-to-value (LTV) ratio, interest-only terms, and non-recourse structure. If you're an investor looking to address light rehab needs in your student housing property, this loan program may be a suitable choice.Freddie Mac Supplemental Multifamily Loans serve as additional financing options for investors with existing Freddie Mac loans. These loans, with a minimum size of $1,500,000, offer up to 80% loan-to-value (LTV) ratio and are non-recourse. The program presents an attractive option for investors seeking extra funds to enhance their multifamily properties. There are two types of Freddie Mac Supplemental Loans: Split Supplemental Loans, originated simultaneously with the original loan, and Seasoned Supplemental Loans.

LOAN TYPES