Freddie Mac's Fixed Rate program provides financing for the acquisition, refinance, and moderate rehabilitation of multifamily properties. Freddie Mac is committed to offering competitive, market-driven pricing that provides the lowest rates and spreads for the highest quality loans while providing flexibility and a broad range of loan terms.

In addition to 5-30 year terms, up to 30 year amortization and supplemental mortgages Freddie Mac offers standard or early rate lock options on their fixed rate loans, making it possible for borrowers to lock in a desirable interest rate as early as 12 months before the loan closes. Further cost savings are realized at the end of the loan term for borrowers who choose the fixed-to-float option which automatically converts the loan into a floating rate mortgage for an additional year during which time the borrower can arrange for new financing. The loan may be paid off at any time during the floating year at par.

Freddie Mac Fixed Rate:

Eligibility
Garden, mid and high-rise apartments, co-ops and senior housing properties

Loan amounts
$3 million minimum with a $50 million maximum.

Term/amortization
5 to 30 year term (standard)
5 to 15 year term (fixed-to-float)
Fully amortizing loans available

Debt service coverage
1.25x minimum

Loan to value
80% maximum

Delivery options
Standard or early rate lock options available

Personal recourse
None, except for typical lender "Carve-Outs"

Prepayment   
Prepayable in full, subject to applicable yield maintenance. Prepayable at par during 1-year floating rate period.

Origination fee
Required (varies by loan amount)

Commitment fee
Required (refundable)

Third party fees
Includes appraisal, environmental, and engineering reports

Minimum occupancy requirement
90% for 90 days prior to loan closing

Replacement reserve impounds
Required (waived under special circumstances)

Assumability
Assumable with lender approval for standard fixed rate mortgage. Not assumable during the 1-year floating rate period.

Supplemental mortgages
Supplemental loan associated with DUS loan must be used to pay off mezzanine loan.