Freddie Mac Green Advantage Loan

Let's move your project forward

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
  • Debt Coverage Ratio (DCR): -0.05x of policy-compliant DCR. Subject to lesser of 1.20x or program/product limit
  • Loan-to-Value (LTV) ratio: +5.0% of policy-compliant LTV. Subject to greater of 85% or program/product limit
  • DCR: -0.05x of policy-compliant
    DCR. Subject to lesser of 1.20x or
    program/product limit
  • LTV: +5.0% of policy-compliant
    LTV. Subject to greater of 85% or
    program/product limit
As-Is DCR/LTV
  • DCR: -0.05x of policy compliant DCR
  • Subject to lessor of 1.20x or
    product limit
  • LTV: +5.0% of policy compliant LTV
  • Subject to greater of 85% or
    product limit
  • DCR: -0.05x of policy compliant DCR
  • Subject to lessor of 1.20x or
    product limit
  • LTV: +5.0% of policy compliant LTV
  • Subject to greater of 85% or
    product limit
As-Improved DCR/LTV (If Applicable)
  • Must meet policy compliant DCR/LTV; no adjustments
  • Based on As-Improved NOI and As-Improved appraised value
  • Must meet policy compliant
    DCR/LTV; no adjustments
  • Based on As-Improved NOI and As-Improved appraised value
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.