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.