Tax-Exempt Loan

PRODUCT DESCRIPTION

Financing for the acquisition or refinance of stabilized affordable multifamily properties with 4% Low-Income Housing Tax Credits (LIHTC) with at least 7 years remaining in the tax-credit benefit stream. Could also include HUD Risk Share.

ELIGIBLE PROPERTY TYPES

Garden, mid-rise or high-rise multifamily properties with 4% LIHTC with 90% occupancy for 90 days.

FINANCIAL INVESTMENT, BORROWER AND AFFORDABILITY REQUIREMENTS

Up to 30 years.

TERMS

Immediate fixed-rate[1] financing; forward fixed-rate financing.

TYPE OF FUNDING

1.15x.[2]

COLLATERAL

Financing for the acquisition or refinance of stabilized affordable multifamily properties with 4% Low-Income Housing Tax Credits (LIHTC) with at least 7 years remaining in the tax-credit benefit stream. Could also include HUD Risk Share.

MAXIMUM LOAN-TO-VALUE (LTV) RATIO1 

85% of adjusted value or 90% of market value.[3][4]

MINIMUM FORWARD COMMITMENT TERM 

48 months (with available extensions).

MAXIMUM AMORTIZATION 

40 years.

SUBORDINATE FINANCING 

Permitted; supplemental loans are available.[5] 

TAX AND INSURANCE ESCROWS 

Required.

FEES 

Application fee, commitment fee, plus other fees as applicable.

PRICING 

Transactions will be priced at a spread to 10-year Treasuries.

SECURITIZATION 

Yes, using our M-Deals®, ML-Deals® and Multi PCs®.

YIELD MAINTENANCE 

Minimum 10 years’ prepayment protection.
 

[1] Contact your Freddie Mac rep about floating-rate options.

[2] May include bond refunding, substitution or new issue transactions with 80-20 bonds, combination bonds, Section 8, Section 236, tax abatements, LIHTC and HUD Risk Share.

[3] Adjustments may be made depending on the property, product and/or market.

[4] Based on Appraised As-Stabilized Value

[5] Includes USDA section 515 loans.