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FREDDIE MAC OPTIGO®

Green Advantage®

We make it easy to be green. When you commit to reducing energy or water (by at least 30 percent, with a minimum 15 percent from energy) at a property with rents affordable at workforce housing levels, you can get better pricing and more funding to make these improvements.

Is your property already green certified? Then you may be eligible to get rewarded.

BETTER PRICING. MORE PROCEEDS. ENERGY SAVINGS. WORKFORCE FOCUSED.

Green Up®

  • ELIGIBLE PROPERTIES/LOANS
    • 7- and 10-year fixed-rate.
    • Properties must have at least 50% of the rents affordable at workforce housing levels based on the market.Green Up and Green Up Plus loans require Borrowers to engage a third-party data collection consultant, prior to the origination of the loan, to collect, input and monitor actual energy and water usage through the term of the loan.
      – 80% AMI in standard markets.
      – 100% AMI in cost-burdened renter markets.
      – 120% AMI in very cost-burdened renter markets.
      – 150% AMI in extremely cost-burdened renter markets.

    Please see the Affordability Test.

  • MINIMUM PROJECTED CONSUMPTION REDUCTION

    30% of energy or water/sewer consumption for the whole property, with a minimum of 15% from energy, based on Green Assessment.

  • UNDERWRITING APPROACH

    Recognize 50% of projected owner-paid energy and/or water/sewer savings based on Green Assessment.

  • LOAN PROCEEDS/SIZING
    • Debt Coverage Ratio (DCR): -0.05x of policy-compliant DCR. Subject to lesser of 1.20x or program/product limit.
    • Loan-to-Value (LTV) ratio: +5.0% of policy-compliant LTV. Subject to greater of 85% or program/product limit.
  • AS-IS DCR/LTV
    • DCR: -0.05x of policy compliant DCR.
    • Subject to lessor of 1.20x or product limit.
    • LTV: +5.0% of policy compliant LTV.

    Subject to greater of 85% or product limit.

  • AS-IMPROVED DCR/LTV (if applicable)
    • Must meet policy compliant DCR/LTV; no adjustments.
    • Based on As-Improved NOI and As-Improved appraised value.
  • TIME TO COMPLETE GREEN IMPROVEMENTS

    2 years to complete.

  • ESCROW REQUIREMENTS

    Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed.

  • REQUIRED THIRD-PARTY REPORTS

    Green Assessment.

  • BENCHMARKING DATA COLLECTION

    Green Up and Green Up Plus loans require Borrowers to engage a third-party data collection consultant, prior to the origination of the loan, to collect, input and monitor actual energy and water usage through the term of the loan.

Green Up Plus®

  • ELIGIBLE PROPERTIES/LOANS
    • 7- and 10-year fixed-rate.
    • Properties must have at least 50% of the rents affordable at workforce housing levels based on the market.Green Up and Green Up Plus loans require Borrowers to engage a third-party data collection consultant, prior to the origination of the loan, to collect, input and monitor actual energy and water usage through the term of the loan.
      – 80% AMI in standard markets.
      – 100% AMI in cost-burdened renter markets.
      – 120% AMI in very cost-burdened renter markets.
      – 150% AMI in extremely cost-burdened renter markets.

    Please see the Affordability Test.

  • MINIMUM PROJECTED CONSUMPTION REDUCTION

    30% of energy or water/sewer consumption for the whole property, with a minimum of 15% from energy, based on Green Assessment Plus.

  • UNDERWRITING APPROACH

    Recognize 75% of projected owner-paid energy and/or water/sewer savings based on Green Assessment Plus.

  • LOAN PROCEEDS/SIZING
    • Debt Coverage Ratio (DCR): -0.05x of policy-compliant DCR. Subject to lesser of 1.20x or program/product limit.
    • Loan-to-Value (LTV) ratio: +5.0% of policy-compliant LTV. Subject to greater of 85% or program/product limit.
  • AS-IS DCR/LTV
    • DCR: -0.05x of policy compliant DCR.
    • Subject to lessor of 1.20x or product limit.
    • LTV: +5.0% of policy compliant LTV.

    Subject to greater of 85% or product limit.

  • AS-IMPROVED DCR/LTV (if applicable)
    • Must meet policy compliant DCR/LTV; no adjustments.
    • Based on As-Improved NOI and As-Improved appraised value.
  • TIME TO COMPLETE GREEN IMPROVEMENTS

    2 years to complete.

  • ESCROW REQUIREMENTS

    Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed.

  • REQUIRED THIRD-PARTY REPORTS

    Green Assessment Plus.

  • BENCHMARKING DATA COLLECTION

    Green Up and Green Up Plus loans require Borrowers to engage a third-party data collection consultant, prior to the origination of the loan, to collect, input and monitor actual energy and water usage through the term of the loan.

Already Green?

  • GREEN CERTIFIED

    We give discounted loan pricing for 7- and 10-year fixed-rate loans – if at least 50% of the property’s units are affordable at workforce housing levels – and has one these eight industry-standard green building certifications:

    1. EarthCraft, Greater Atlanta Home Builders Association & South Face.
    2. ENERGY STAR® for Multifamily, EPA.
    3. ENERGY STAR® for Qualified Multifamily High-Rise, EPA.
    4. Green Communities, Enterprise Community Partners.
    5. Green Globes, Green Building Initiative.
    6. GreenPoint Rated, Build It Green.
    7. LEED, US Green Building Council.
    8. National Green Building Standard (NGBS), Home Innovation Research Labs.
  • GREEN REBATE

    If your borrower doesn’t choose any of the above Green Advantage options, make sure they know they can receive $5000 from Freddie Mac for delivering an EPA ENERGY STAR Score®.

  • C-PACE

    Freddie Mac Multifamily can grant consent for Commercial PACE financing from qualifying Commercial PACE programs on loans in our retained portfolio. Additional requirements apply. Optigo Seller/Servicers should speak with a Freddie Mac representative for details.


In its prequalifying review, Lument will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.

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