Freddie Mac Conventional Supplemental Loan

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Terms

Eligible Loans

  • Loans behind existing first loans
  • Stabilized properties in good standing
  • Purchased through the Conventional Cash Mortgage Purchase program, the Targeted Affordable
    Housing Cash Mortgage Purchase program, the Seniors Housing Cash Mortgage Purchase
    program, and Conventional Structured Transactions
  • Prior loans (first loans and any prior supplemental loans in place) must have remaining terms of
    3 years or more
  • Minimum supplemental amount: $1 million

Loan Term

Coterminous with first loan; must be at least 12 months after origination of the first loan or the most
recent prior to the supplemental loan; not available during the last 3 years of the first loan

Max Loan to Value
80%

Minimum Coverage
1.25x

Supplemental Loan Base

Maximum LTV

and Minimum DCR

Fixed-Rate LTV/DCR and Floating-Rate LTV/DCR

(DCR at comparable fixed-note rate)

Amortizing

Partial-Term

Interest-Only

Full-Term

Interest-Only

≥ 3-Year and < 5-Year Term

75% / 1.35x

75% / 1.35x

65% / 1.45x

≥ 5-Year and < 7-Year Term

75% / 1.30x

75% / 1.30x

65% / 1.40x

≥ 7-Year Term

80% / 1.25x

80% / 1.25x

70% / 1.35x

Borrower

Original first loan borrower or lender-approved transferee