Freddie Mac Targeted Affordable Housing Preservation Loan

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Terms

Description
Permanent financing for the acquisition or refinance of stabilized affordable multifamily properties

Affordability Requirements
Low-income qualifying restrictions; 20% or more units rented to families earning at or below 50% of Area Median Income (AMI), or 40% or more units rented to families earning at or below 60% of AMI; however, other affordability types will be considered

Loan Amount
Minimum $3 million

Loan Term
7 to 30 years

Amortization
Up to 30 years

Loan-to-Value Maximum
80% of market value; 90% of market value with HUD Risk Sharing Loan-to-Value

Debt Service Coverage

  • 1.25x (1.15x with HUD Risk Sharing)
  • Cash-out Refinance: 1.30x (1.20x with HUD Risk Sharing)

Borrower
The Borrower must be a domestic single asset borrowing entity and single purpose entity (SPE)

Interest Rate
Risk-based pricing, varying with LTV, DSC ratios and cash out components

Prepayment
Yield Maintenance