Freddie Mac Green Advantage Loan

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.

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.

Freddie Mac Green Advantage Loan

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Additional Terms