Freddie Mac 9% LIHTC Mortgage
Freddie Mac offers financing for affordable multifamily properties that have received a 9% Low-Income Housing Tax Credit (LIHTC) allocation. Our 9% LIHTC Mortgage product provides a financing solution for affordable housing properties at any stage of development, whether the property is newly constructed, or undergoing substantial or moderate rehabilitation. Freddie Mac can also assist you in the acquisition or refinance of an affordable housing multifamily property with 9% tax credit. We invite you to talk to one of our Seller/Servicers through the Freddie Mac Targeted Affordable Housing (TAH) Delegated Network to learn more about our affordable housing products and offerings.
Key Benefits
- Our 9% LIHTC Cash Mortgage provides you with cash for your development project, which reduces the amount of borrowed debt and allows you to offer more affordable rents.
- Loans with HUD Risk Sharing may be allowed more favorable LTV and DCR terms.
At-a-Glance Comparison
| Product Summary | Forward Commitment | Immediate Funding | Moderate Rehabilitation |
|---|---|---|---|
| Product Description | Forward commitment for new construction or substantial rehabilitation of affordable multifamily properties with 9% LIHTC | Financing for the acquisition or refinance of stabilized affordable multifamily properties with 9% LIHTC | Financing for the moderate rehabilitation (with tenants in place) of affordable multifamily properties with 9% LIHTC |
| Type of Funding | Funded and unfunded construction financing; permanent financing at conversion | Permanent financing | Loan proceeds available for acquisition/rehabilitation (max 24 months); full proceeds available at completion and lease-up |
| Eligible Properties | To-be-built or substantially rehabilitated garden, mid-rise or high-rise multifamily properties that have received a 9% tax credit allocation | Garden, mid-rise or high-rise multifamily properties with 9% LIHTC that meet affordability criteria and with 90% occupancy for 90 days | Garden, mid-rise or high-rise multifamily properties with 9% LIHTC that are undergoing moderate rehabilitation with tenants in place |
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| Loan Term | Up to 36 months for forward (two 6-month extensions available during construction); maximum 30 yr term for permanent loan. Minimum of the remaining LIHTC compliance period. | Minimum of the remaining LIHTC compliance period. Maximum 30 years. | Minimum of the remaining LIHTC compliance period. Maximum term of 30 years. Moderate Rehabilitation period will be included in loan term not to exceed 24 months. |
| Maximum Amortization | 35 years | 35 years | 35 years |
| Prepayment Provisions | Yield Maintenance | Yield Maintenance | Yield Maintenance |
| Subordinate Financing | Available | Available | Available |
| Fees | Funded – forward commitment: 2%; delivery assurance: 5% Unfunded – forward commitment: 3%; delivery assurance: 5% Other – application fee, extension fee, delivery assurance fee, legal fees |
Application fee, extension fee, breakage fee, legal fees | Application fee, extension fee, breakage fee, legal fees |
| Application Fee | The greater of $3,000 or 0.1% of the maximum loan amount | The greater of $3,000 or 0.1% of the maximum loan amount | The greater of $3,000 or 0.1% of the maximum loan amount |
| Tax and Insurance Escrows | Required per TAH Guide on AllRegsTM | Required per TAH Guide on AllRegs | Required per TAH Guide on AllRegs |
Contact Us
- Download and print Freddie Mac's contact information
PDF Version
- Download the 9% LIHTC Mortgage term sheet.
The information in this document is not a replacement or substitute for information found in the Delegated Underwriting for Targeted Affordable HousingSM Guide on AllRegs. Terms set forth herein are subject to change without notice.