Freddie Mac Floating Rate Apartment Loans
The Freddie Mac floating rate program provides streamlined and flexible financing at low cost for apartment and multifamily properties. This program gives the borrower a variety of options to suit their loan characteristics.
| Floating Rate Loan Options and Requirements | |
| Eligible Products | Multifamily housing, purpose-built student housing, seniors housing, and Targeted Affordable Housing. |
| Loan Size | $5 million+ |
| Pricing Index | 1-month LIBOR index |
| 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 RateLock 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. |
| Term | 5-, 7-, and 10-year terms |
| Interest Rate Cap | Borrower may obtain its own cap coverage from a third-party provider. |
| Interest-Only Period | Partial-term and full-term interest-only available; see chart below and related footnotes |
| Max Amort | 30 years |
| Min DSCR DSCR Calculator | 1.25x |
| Amortization Calculations | Actual/360 |
| Lockout Period | 1 - 2 years |
| Tax & Insurance Escrow | Typically Required |
| Replacement Reserve Deposit | Typically Required |
| Recourse | Non-recourse except for standard carve-out provisions |
| Prepayment Options | Graduated prepayment options |
| Supplemental Financing | Yes, subject to requirements specified in the Loan Agreement |
Freddie Mac Program Plus
Program Plus Options
