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.
