FREDDIE MAC OPTIGO®
Supplemental Loan
ADD-ON FUNDING WITHOUT REFINANCING
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ELIGIBLE BORROWERS
Original first loan borrower or lender-approved transferee.
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ELIGIBLE LOANS1
- Loans behind existing first loans:
- Stabilized properties in good standing.
- Purchased through the Conventional Cash Mortgage Purchase program, the Targeted Affordable Housing Cash Mortgage Purchase program, the Seniors Housing Cash Mortgage Purchase program, and Conventional Structured Transactions.
- Prior loans (first loans and any prior supplemental loans in place) must have remaining terms of 3 years or more.
- Minimum supplemental amount: $1 million.
- Loans behind existing first loans:
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TERMS
Coterminous with first loan; must be at least 12 months after origination of the first loan or the most recent prior to the supplemental loan; not available during the last three years of the first loan.
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PREPAYMENT PROVISIONS
- Fixed Rate: Structured as a yield maintenance loan
- Floating Rate: See Optigo Floating Rate Loan Term Sheet.
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RESERVE AND ESCROW REQUIREMENTS
Origination of a supplemental loan may trigger collection of deferred reserves and escrows under the first loan. Deferred insurance escrows may be permitted under limited circumstances.
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REFINANCE TEST
Based on the sum of the debt service and unpaid principal balance of the first loan and all existing and proposed supplemental loans.
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SERVICING FEE
Calculation based on supplemental proceeds.
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LOAN DOCUMENTS
Subject to Freddie Mac’s then current loan documents and any applicable conditions set forth in the first loan and any existing supplemental loan documents.
Loan-to-Value (LTV) Ratios and Amortizing Debt Coverage Ratios (DCR)1
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SUPPLEMENTAL LOAN BASE MAXIMUM LTV AND
MINIMUM DCRFIXED-RATE LTV/DCR AND FLOATING-RATE LTV/DCR
(DCR at comparable fixed-note rate) -
≥ 3-YEAR AND
< 5-YEAR TERMAmortizing2,3: 75% / 1.35x.
Partial-Term Interest-Only2,3: 75% / 1.35x.
Full-Term Interest-Only (including any supplemental loan with a full-term interest only first loan): 65% / 1.45x. -
≥ 5-YEAR AND
< 7-YEAR TERMAmortizing2,3: 75% / 1.25x.
Partial-Term Interest-Only2,3: 75% / 1.25x.
Full-Term Interest-Only (including any supplemental loan with a full-term interest only first loan): 65% / 1.35x. -
> 7-YEAR TERM
Amortizing2,3: 80% / 1.25x.
Partial-Term Interest-Only2,3: 80% / 1.25x.
Full-Term Interest-Only (including any supplemental loan with a full-term interestonly first loan): 70% / 1.35x.
1All DCRs and LTVs are calculated based on the sum of the amortizing debt service and unpaid principal balance of the first loan and all existing and proposed supplemental loans.
2For partial-term interest-only loans, there must be a minimum amortization period of 2 years. All mortgages with <2 years of Amortization must meet the requirement for full-term Interest Only Mortgages.
3Maximum combined maturity LTV is 70% subject to adjustment for certain property and loan types.
