FREDDIE MAC OPTIGO®
Tax-Exempt Loan
COST-EFFECTIVE TAX-EXEMPT FINANCING
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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.
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ELIGIBLE PROPERTY TYPES
Garden, mid-rise, or high-rise multifamily properties with 4% LIHTC with 90% occupancy for 90 days.
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TERMS
Up to 30 years.
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TYPE OF FUNDING
Immediate fixed-rate1 financing; forward fixed-rate financing.
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MINIMUM DEBT COVERAGE RATIO (DCR)2
1.15x2.
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COLLATERAL
First-lien mortgages of conventional, seniors housing, or student housing properties.
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MAXIMUM LOAN-TO-VALUE (LTV) RATIO1
85% of adjusted value or 90% of market value1,4.
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MINIMUM FORWARD COMMITMENT TERM
Up to 36 months.
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MAXIMUM AMORTIZATION
40 years.
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SUBORDINATE FINANCING
Permitted; supplemental loans are not available.5
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TAX AND INSURANCE ESCROWS
Required.
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FEES
Application fee, commitment fee, plus other fees as applicable.
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PRICING
Transactions will be priced at a spread to 10-year Treasuries.
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SECURITIZATION
Yes, using our M-Deals®, ML-Deals® and Multi PCs.®
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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.