Freddie Mac


Freddie Mac Commercial Loans provides many options for multi-family apartment buildings, student, and senior housing. These loans are sold to Freddie Mac for securitization in mortgage pools. Interest rates are usually lower than traditional Lenders for 5 units and up for apartment buildings. These loans are based on the strength of the property versus the strength of the borrower. The Loan-to-Value can be as high as 80%, if the income can support the loan amount and the Loan-to-Value which is higher 3 than what most Lenders offer. Credit score needed for Freddie Mac loans are also lower currently at 660.

Loan minimum is $1,000,000, 80% loan-to-value, 5,7- and 10-year fixed rate, 30-year amortization. Interest only payments are available for 1-10 years. One important caveat is that Freddie Mac loans are non-recourse, no personal guarantee is required, and the loans are assumable.


CCM Freddie Mac Overview:


LOAN AMOUNTS: $1 Million – $10 Million in All Markets
MARKETS: 50 States
LOAN PURPOSE: Acquisition or Refinance (Cash-Out Available)
ELIGIBLE PROPERTIES: Conventional multifamily housing with five residential units or more. Mobile Home Parks, Mixed-use subject to limitations.
LOAN TERMS: 20 Year Hybrid ARM with Initial 5-, 7-, or 10-Year Fixed-Rate Period, 5-, 7-, or 10-Year Fixed-Rate Mortgage
INTEREST ONLY: Partial Interest-Only, Full-term Interest-Only May Be Available
AMORTIZATION: Up to 30 Years
PREPAYMENTS: Declining Schedules and Yield Maintenance Available for All Loan Types
DEBT SERVICE: 1.1x Top 1.25x Standard
COVERAGE: 1.30x Small 1.40x
MAXIMUM LTV: 80% Available in Top and Standard Markets
RECOURSE: Non-recourse with Standard Carve-out Provisions
CREDIT: Minimum FICO Score of 650
OCCUPANCY Minimum 90% Occupancy of Units for 90 Days Prior to Underwriting