Freddie Mac Direct Purchase of Tax-Exempt Loans

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Terms

Description
Forward Commitments or Immediate financing for the acquisition or refinance of affordable multifamily properties with 4% Low Income Housing Tax Credits (LIHTC) with at least 7 years remaining in the tax
credit benefit period

Affordability Requirements
Low-income qualifying restrictions; 20% or more units rented to families earning at or below 50% of Area Median Income (AMI), or 40% or more units rented to families earning at or below 60% of AMI; however, other affordability types will be considered. (May include bond refunding, substitution, or new issue transactions with 80-20 bonds, combination bonds, Section 8, Section 236 tax abatements and LIHTC)

Loan Amount
Minimum $3 million

Loan Term
For LIHTC transactions, the minimum term is equal to the lesser of the remaining LIHTC period (as long as there are at least 7 years remaining in the initial tax credit benefit period) or 15 years and the maximum term is 18 years

Amortization
Up to 35 years

Loan-to-Value
Maximum 85% of adjusted value or 90% of market value

Debt Service
1.15x (if greater than 90% LIHTC)

Borrower
The Borrower must be a domestic single asset borrowing entity and single purpose entity (SPE)

Interest Rate
Risk-based pricing, varying with LTV, DSC ratios and transaction specific components Adjustments may be made based on the property, product, and/or market

Prepayment
Minimum 10 years prepayment protection