lcp-autoptimize
Download Term Sheet

FREDDIE MAC OPTIGO®

Tax-Exempt Loan

COST-EFFECTIVE TAX-EXEMPT FINANCING

  • PRODUCT DESCRIPTION

    Financing for the acquisition or refinance of stabilized affordable multifamily properties with 4% Low-Income Housing Tax Credits (LIHTC) with at least 7 years remaining in the tax-credit benefit stream. Could also include HUD Risk Share.

  • ELIGIBLE PROPERTY TYPES

    Garden, mid-rise, or high-rise multifamily properties with 4% LIHTC with 90% occupancy for 90 days.

  • TERMS

    Up to 30 years.

  • TYPE OF FUNDING

    Immediate fixed-rate1 financing; forward fixed-rate financing.

  • MINIMUM DEBT COVERAGE RATIO (DCR)2

    1.15x2.

  • COLLATERAL

    First-lien mortgages of conventional, seniors housing, or student housing properties.

  • MAXIMUM LOAN-TO-VALUE (LTV) RATIO1

    85% of adjusted value or 90% of market value1,4.

  • MINIMUM FORWARD COMMITMENT TERM

    Up to 36 months.

  • MAXIMUM AMORTIZATION

    40 years.

  • SUBORDINATE FINANCING

    Permitted; supplemental loans are not available.5

  • TAX AND INSURANCE ESCROWS

    Required.

  • FEES

    Application fee, commitment fee, plus other fees as applicable.

  • PRICING

    Transactions will be priced at a spread to 10-year Treasuries.

  • SECURITIZATION

    Yes, using our M-Deals®, ML-Deals® and Multi PCs.®

  • YIELD MAINTENANCE

    Minimum 10 years’ prepayment protection.


1 Contact your Lument rep about floating-rate options.
2 May include bond refunding, substitution or new issue transactions with 80-20 bonds, combination bonds, Section 8, Section 236, tax abatements and LIHTC.
3 Adjustments may be made depending on the property, product and/or market.
4 Based on Appraised As-Stabilized Value.
5 Includes USDA section 515 loans.

Copy link
Powered by Social Snap
Lument
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.