Apartment Building

Freddie Mac Fixed Rate Apartment Loans

The Freddie Mac fixed rate program provides streamlined and flexible financing for apartment and multifamily properties. This program gives the borrower a variety of options to suit their loan characteristics.

Fixed-Rate Loan Options and Requirements
Eligible Products Multifamily housing, purpose-built student housing, seniors housing, cooperative housing, and Targeted Affordable Housing.
Loan Size$5 million+
Term5- to 10-year terms
Max Amort30 years
Min DSCR DSCR Calculator1.25x
Amortization CalculationsActual/360 standard; 30/360 available
Lockout Period2 years
PrepaymentYield maintenance until securitized followed by 2-year lockout; defeasance thereafter. No prepayment premium for final 90 days. If loan is not securitized within first year, then yield maintenance applies for the life of the loan. Yield maintenance without defeasance is available for securitized loans for an additional cost.
Tax & Insurance EscrowTypically Required
Replacement Reserve DepositTypically Required
RecourseNon-recourse except for standard carve-out provisions
Prepayment OptionsYield maintenance and other graduated prepayment options
Supplemental Financing Yes, subject to requirements specified in the Loan Agreement
Lock OptionsEarly rate-lock option available for varying durations, typically ranging from 60 to 120 days until Freddie Mac purchase.

Freddie Mac Program Plus