Freddie Mac Direct Purchase of Tax-Exempt Loans
This program provides a cost-effective alternative to tax exempt bond credit enhancements with 4% low-income housing tax credits. This program also requires less documents and less participants than bond loans. This can reduce the cost of issuance up to 40%.
| Summary | |
| Description | Financing for the acquisition or refinance of affordable multifamily properties with 4% LIHTC with at least 7 years remaining in the initial LIHTC compliance period |
| Types of Funding | Immediate fixed-rate financing; up to 35 years amortization with a balloon up to 18 years |
| Eligible Properties | Garden, mid-rise or high-rise multifamily properties with 4% LIHTC that maintain 90% occupancy for 90 days |
| Min DSCR DSCR Calculator | 1.15x |
| Max LTV | 90% |
| Maximum Loan Term | 18 years |
| Construction Loan Term | NA |
| Maximum Amortization | 35 years |
| Subordinate Financing | Permitted |
| Tax & Insurance Escrows | Required |
| Pricing | Transactions will be priced at a spread to 10-year Treasuries |
| Securitization | Yes, using M-Deals |
| Yield Maintenance | Minimum 10 years prepayment protection |
Freddie Mac Affordable Housing Loans
Affordable Housing Mortgages
