Freddie Mac Green Advantage Loan
Terms
When you commit to reducing energy or water (by at least 30%, with a minimum 15% from energy), you can get better pricing and more funding through the Green Up and Green Up Plus programs. If your property is already green certified, see what the Green Certified, Green Rebate, and C-PACE programs can do you for your property.
Green Up® | Green Up Plus® | |
Minimum Projected Consumption Reduction |
30% of energy or water/sewer consumption for the whole property, with a minimum of 15% from energy, based on Green Assessment |
30% of energy or water/sewer consumption for the whole property, with a minimum of 15% from energy, based on Green Assessment Plus |
Underwriting Approach | Recognize 50% of projected ownerpaid energy and/or water/sewer savings based on Green Assessment |
Recognize 75% of projected owner-paid energy and/or water/ sewer savings based on Green Assessment Plus |
Loan Proceeds / Sizing |
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As-Is DCR/LTV |
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As-Improved DCR/LTV (If Applicable) |
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Time to Complete Green Improvements |
2 years to complete | 2 years to complete |
Escrow Requirements | Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed |
Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed |
Required Third-Party Reports | Green Assessment | Green Assessment Plus |
Benchmarking Data Collection | Green Up loans require Borrowers to engage a third-party data collection consultant, prior to the origination of the loan, to collect, input and monitor actual energy and water usage through the term of the loan. |
Green Up Plus loans require Borrowers to engage a third-party data collection consultant, prior to the origination of the loan, to collect, input and monitor actual energy and water usage through the term of the loan. |
Additional Terms
Green Certified
We give discounted loan pricing for properties — if at least 20% of the property’s units are affordable rental units — and has one of these eight industry-standard green building certifications:
1 EarthCraft, Greater Atlanta Home Builders Association & South Face
2 ENERGY STAR® for Multifamily, EPA
3 ENERGY STAR® for Qualified Multifamily High-Rise, EPA
4 Green Communities, Enterprise Community Partners
5 Green Globes, Green Building Initiative
6 GreenPoint Rated, Build It Green
7 LEED, US Green Building Council
8 National Green Building Standard (NGBS), Home Innovation Research Labs
Green Rebate
Borrower can receive $5,000 from Freddie mac for delivering an EPA ENERGY STAR Score.
C-PACE
Freddie Mac Multifamily can grant consent for Commercial PACE financing from qualifying Commercial PACE programs on loans in our retained portfolio. Additional requirements apply.