wholesale nhl jerseys nhl jerseys cheap cheap nfl nike jerseys carolina panthers jerseys cheap cheap baseball jersey cheap jerseys cheap youth football jerseys cheap bengals jerseys seahawk jerseys cheap denver broncos jersey cheap cheap jerseys free shipping

Freddie Mac Adjustable Rate Apartment Loans

Offering Advantages of Freddie Mac Multifamily Loans With Very Low Floating Rates

FHA Apartment Construction Loans 3.240% – 3.640% Fixed 40 Years Get Confidential Loan Quote ›
Fannie Mae 5 Year Adjustable Rate Multifamily Loans 2.773% Get Confidential Loan Quote ›
Apartment Refinance Loans 3.150% Fixed 35 Years Exclusive Apartment Loans Refinance Offer ›

Apartment Loan Overview

Freddie Mac adjustable rate apartment loans are ideal for multifamily mortgage borrowers who want to take advantage of lower short-term rates with prepayment flexibility

Key Benefits

• Offers a streamlined, yet still flexible, financing solution at Freddie Mac’s lowest price
• Borrowers can choose from several options to suit their loan characteristics and needs, including a variety of interest rate cap coverage and prepayment provision options

Freddie Mac Adjustable Rate Apartment Loans Terms

Eligible Properties
Standard multifamily housing, purpose-built student housing, seniors housing, and Targeted Affordable Housing cash (e.g., LIHTC Year 4-10 and 11-15, Section 8) loans; conventional structured transactions. Floating-rate loans are not available for cooperative housing.

Borrowing Entity
  • Borrower may generally be a limited partnership, corporation, limited liability company, or a tenancy-in-common (TIC) with 10 or fewer tenants in common.
  • General partnerships, limited liability partnerships, REITs and certain trusts may also be acceptable in limited circumstances, subject to additional requirements.
  • Borrower must generally be a Single Purpose Entity (SPE) (see Section 6.13 of the Loan Agreement for basic SPE requirements); however, on loans less than $5 million, upon Borrower’s request, a Borrower other than a TIC may be a Single Asset Entity (SAE) instead of an SPE.
  • If the borrower is structured as a Tenancy In Common (TIC), each Tenant in Common must be an SPE.

Loan Size
Generally $5 to $100 million (smaller and larger loans will be considered)

Pricing Index
1-month LIBOR index1

Early Spread Lock Options
Early spread lock option available for varying durations, typically ranging from 60 to 120 days from spread lock until Freddie Mac purchase, as well as our Fast Track Early Rate-Lock option for conventional transactions for 90 or 120 days until Freddie Mac purchase; Sellers should consult with their regional Freddie Mac representative to determine eligibility

Loan Terms
5-, 7-, and 10-year terms

Interest-Only Period
Partial-term and full-term interest-only available; see chart below and related footnotes

Interest Rate Cap
Borrower may obtain its own cap coverage from a third-party provider (see our Approved Counter parties List for a list of approved providers); see the Interest-Rate Cap Options for Floating-Rate Cash Loans with a 7-Year Term example. No cap necessary for loans with a loan-to-value ratio of less than 60%.

Maximum Amortization
30 years

Amortization Calculations
Actual/360

Lockout Period
Typically 1 to 2 years followed by a fixed prepayment premium

Prepayment Provisions
Four prepayment options available (see chart below) with no premium for final 90 days; other options are available for loans that are not intended to be securitized. Borrowers should contact a Freddie Mac Multifamily Seller/Servicer for more information; Freddie Mac Sellers should contact their Freddie Mac representative.

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 Loan Agreement

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

Refinance Test
No Refinance Test is necessary if the loan has an amortizing debt coverage ratio (DCR) of 1.40x or greater and a loan-to-value (LTV) ratio of 65% or less; all partial-term interest-only loans must pass the Refinance Test

Prepayment Provisions1

You can choose from four prepayment provisions when structuring Freddie Mac standard, capped, or uncapped floating- rate loans. Each option offers no prepayment premium for the last 90 days of the loan term.

Prepayment Premium Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Option 1 Locked
out
1% 1% 1% 1% 1% 1% 1%
Option 2 3% 2% 1% 1% 1% 1% 1% 1%
Option 3 5% 4% 3% 2% 1% 1% 1% 1%
Option 4 (only for 10-yr
capped floating-rate loan)
7% 6% 5% 4% 3% 2% 1% 1%

 

Loan-to-Value (LTV) Ratios and Amortizing2 Debt Coverage Ratios (DCRs)

FLOATING-RATE BASE CONVENTIONAL MAXIMUM LTV AND MINIMUM DCR3 (For specific product adjustments, refer to individual term sheet)
Amortizing Partial-Term Interest-Only4 Full-Term Interest-Only
Acquisitions and Refinances
= 5-Year and < 7-Year Term 75% / 1.30x 75% / 1.30x 65% / 1.40x
7-Year Term 80% / 1.25x 80% / 1.25x 70% / 1.35x
> 7-Year Term4 80% / 1.25x 80% / 1.25x 70% / 1.35x

1 Other options are available for loans that are not intended to be securitized. Borrowers should contact a Freddie Mac Multifamily Seller/Servicer for more information; Freddie Mac Sellers should contact their Freddie Mac representative.
2 The DCR calculated for the partial-term interest-only and full-term interest-only period uses an amortizing payment at the comparable fixed note rate.
3 Adjustments may be made depending on the property, product, and/or market.
4 For partial term interest-only loans, there must be a minimum amortization period of 5 years for loans with terms greater than 5 years. Acquisition loans with 5-year terms may have up to 1 year of partial-term interest-only. For terms of 10 years or more, no more than 5 years of interest-only is permitted.