Freddie Mac Lease-Up Loan

Let's move your project forward



For refinancing or acquiring newly constructed properties.


Borrowers must have experience with new construction and/or lease-up properties, and generally have strong financial capacity and real estate management expertise with good performance and credit history.

Eligible Property Types

  • Well-constructed properties, exhibiting strong lease-up trends, and located in good locations and markets
  • Student housing, seniors housing and manufactured housing community transactions are not eligible
  • Stabilization expected within 12 months of funding

Loan Types

  • Fixed- and floating-rate loans
  • Interest-only (I/O) available during the lease-up period


Targeting strong markets and locations


  • Maximum LTV on refinance is 75% (as-stabilized) and on an acquisition 70% (as-stabilized)
  • Minimum DSCR on a refinance and acquisition is 1.30x.

Minimum Cash Equity Requirement

15% on a refinance and 25% on an acquisition

Minimum Credit Enhancement Requirements

  • A Lease-Up Credit Enhancement is required for all Lease-Up transactions
  • The form of the Lease-Up Credit Enhancement will be determined by Freddie Mac
  • The Lease-Up Credit Enhancement must be at least 5% of the unpaid principal balance (10% if the Lease-Up Credit Enhancement is a guaranty, subject to additional conditions)
  • Release of Lease-Up Credit Enhancement will occur once the property has achieved the required amortizing DCR based on average performance of the past 3 months, net rental income for the past 1 month meets or exceeds the level necessary to reach the required amortizing DCR, and has met other standard conditions as set forth by Freddie Mac
  • If the required DCR is not reached within 12 months, the Lease-Up Credit
  • Enhancement will be used to resize the loan and recast the payments.