Affordable Housing Building

Freddie Mac Direct Purchase of Tax-Exempt Loans


This program provides a cost-effective alternative to tax exempt bond credit enhancements with 4% low-income housing tax credits. This program also requires less documents and less participants than bond loans. This can reduce the cost of issuance up to 40%.


Summary
DescriptionFinancing for the acquisition or refinance of affordable multifamily properties with 4% LIHTC with at least 7 years remaining in the initial LIHTC compliance period
Types of Funding Immediate fixed-rate financing; up to 35 years amortization with a balloon up to 18 years
Eligible Properties Garden, mid-rise or high-rise multifamily properties with 4% LIHTC that maintain 90% occupancy for 90 days
Min DSCR DSCR Calculator 1.15x
Max LTV 90%
Maximum Loan Term 18 years
Construction Loan Term NA
Maximum Amortization 35 years
Subordinate Financing Permitted
Tax & Insurance Escrows Required
Pricing Transactions will be priced at a spread to 10-year Treasuries
Securitization Yes, using M-Deals
Yield Maintenance Minimum 10 years prepayment protection

Freddie Mac Affordable Housing Loans