Freddie Mac's Float-to-Fixed-to-Float 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 a range of loan terms, amortizing or interest only payments, as well as supplemental mortgages Freddie Mac offers borrowers the opportunity to maximize their savings by choosing an initial period at a low floating rate, followed by a fixed rate period, and a final floating rate period during which the borrower can arrange for refinancing and repay the loan at par.

Freddie Mac also offers standard or early rate lock delivery options on their Float-to-Fixed-Float loans, making it possible for borrowers to lock in a desirable spread on their floating rate and a low fixed interest rate as early as 60 days before the loan closes.

Program Highlights:

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

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

Term/amortization
1 or 2 year term (initial floating rate term)
4 to 13 year term (fixed rate term)
Fully amortizing loans available

Interest rate
Spread on the initial floating rate and the fixed interest rate are determined at Early Rate Lock or commitment

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 during initial floating and fixed rate periods. Prepayable at par during the final 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
Typically required

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