Apartment Building

Freddie Mac Revolving Credit Facility

The Freddie Mac revolving credit facility provides the ability to lock credit terms and spreads prior to identifying properties, certainty of execution, continuous access to capital, and is an ideal financing vehicle for transitional assets.

Revolving Credit Facility Options and Requirements
DescriptionSecured line-of-credit; borrower can move assets in and out of the facility while adhering to the defined credit parameters
Type of FundingContinuous funding as assets are moved in and out of the facility, non recourse basis
Collateral- Conventional first lien mortgages for acquisition rehabilitation/upgrade, acquisition, or refinance
- No minimum occupancy rate is required
Facility Amount- Initial commitment of $100 million or more
Facility Term5 years
PricingFloating rate; full-term interest-only; the facility will be indexed to a 1 month or 3 month LIBOR
-Spreads locked for life of facility for three debt coverage ratio (DCR) levels and one LTV level
Available for SecuritizationNo
Min DSCR DSCR Calculator1.45x
Cross-CollateralizationUnder one or more notes, assets will be cross-collateralized and cross-defaulted
Release of Collateral Allowed
Interest Rate CapAvailable through third-parties
Annual ValuationApplicable
FeesTransaction, application, legal, unused capacity and commitment, seasoning, termination and release fees may apply

Freddie Mac Program Plus