Freddie Mac Cash Mortgages
(With Other Affordability Components*)
Freddie Mac offers financing for affordable multifamily properties that have regulatory restrictions on either rent or income per month on at least 20% of the units. Freddie Mac Cash Mortgages provide 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 multifamily property with required other affordability components. We invite you to talk to one of our Seller/Servicers through our Targeted Affordable Housing (TAH) Delegated Network to learn more about our affordable housing products and offerings.
Key Benefits
- Provides you with cash for your development project, which reduces the amount of borrowed debt and allows you to offer more affordable rents to the community.
- 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 | Financing for the acquisition or refinance of stabilized affordable multifamily properties | Financing for the moderate rehabilitation (with tenants in place) of affordable multifamily properties |
| 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 | Garden, mid-rise or high-rise multifamily properties that meet affordability criteria and with 90% occupancy for 90 days | Garden, mid-rise or high-rise multifamily properties that are undergoing moderate rehabilitation with tenants in place |
| Minimum Debt Coverage Ratio |
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| Maximum Loan-to-Value |
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| Loan Term | Up to 36 months for forward (two 6-month extensions available during construction); 30-yr maximum term for permanent loan beyond construction period |
Maximum 30 years | Maximum term of 30 years. Moderate Rehabilitation period will be included in loan term not to exceed 30 months |
| Maximum Amortization | 30 years | 30 years | 30 years |
| Prepayment Provisions | Yield Maintenance | Yield Maintenance | Yield Maintenance |
| Subordinate Financing | Available | Available | Available |
| Fees | Funded (refundable) – forward commitment: 2%; delivery assurance: 5% Unfunded (refundable) – forward commitment: 3%; delivery assurance: 5% Non-refundable – application fee, extension fee, delivery assurance fee, legal fees |
Non-refundable: Application fee, extension fee, legal fees |
Non-refundable: Application fee, extension 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 |
*May include transactions with Section 8, Section 236, tax abatements, and 80-20 bonds,as well as bond refundings or substitution.
Contact Us
- Download and print Freddie Mac's contact information
PDF Version
- Download the Cash Mortgages 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.