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Download Term Sheet
FREDDIE MAC OPTIGO®
Cash Loan for Affordable Housing Preservation
Get one of our cash loans to finance affordable housing preservation. We offer fast, efficient execution with the added advantage of capital markets pricing. Choose either a fixed- or floating-rate loan.
It’s immediate, permanent financing with a maximum 15-year loan term.
Borrowers get one-stop shopping, lower fees, and interest rate protection for the life of the loan.
FAST, EFFICIENT FUNDING FOR AFFORDABLE HOUSING
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ELIGIBLE PROPERTY TYPES
Garden, mid-rise, or high-rise multifamily properties that meet affordability criteria and with 90% occupancy for 90 days.
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TERMS
Maximum term of 15 years.
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PRODUCT DESCRIPTION
Financing for the acquisition or refinance of stabilized affordable multifamily properties with fixed-rate or floating-rate cash loans; see the Fixed-Rate Loan or Floating-Rate Loan term sheet for more information.
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TYPE OF FUNDING
Permanent, immediate financing.
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MINIMUM DEBT COVERAGE RATIO (DCR)1
1.25x.
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MAXIMUM LOAN-TO-VALUE (LTV) RATIO1
80% of market value.
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CONSTRUCTION LOAN TERM
N/A.
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Maximum Amortization
30 years.
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PREPAYMENT PROVISIONS
Yield maintenance or defeasance, depending on the product.
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SUBORDINATE FINANCING
Permitted per the Freddie Mac Multifamily Seller/Servicer Guide.
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TAX AND INSURANCE ESCROWS
Required per the Freddie Mac Multifamily Seller/Servicer Guide.
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FEES
Application fee, commitment fee, plus other fees as applicable.
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Securitization Available
Yes.
1Adjustments may be made depending on the property, product and/or market.
In its prequalifying review, Lument will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.