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Download Term Sheet
FREDDIE MAC OPTIGO®
Tax-Exempt Loan
Our Tax-Exempt Loans (TELs) help borrowers save time and money when they buy or refinance affordable multifamily properties financed with tax-exempt debt.
Our streamlined TEL process means fewer documents, fewer participants and less expense than traditional bond credit enhancements.
We offer fixed- and variable-rate financing and forwards. Check out our new float-to-fixed option to increase your cash flow.
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 LIHTC compliance period.
FIXED-RATE
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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-rate financing; forward fixed-rate financing.
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MINIMUM DEBT COVERAGE RATIO1 (DCR)
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 value2.
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CONSTRUCTION LOAN TERM
Up to 36 months.
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MAXIMUM AMORTIZATION
Up to 35 years.
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SUBORDINATE FINANCING
Permitted; supplemental loans are not available.
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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.
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YIELD MAINTENANCE
Minimum 10 years’ prepayment protection.
VARIABLE-RATE
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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 10 years.
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TYPE OF FUNDING
Immediate variable-rate financing; forward variable-rate financing.
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MINIMUM DEBT COVERAGE RATIO1 (DCR)
1.20x; with interest rate hedge.
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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
80% of adjusted value or 85% of market value2; with interest rate hedge.
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CONSTRUCTION LOAN TERM
Up to 36 months.
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MAXIMUM AMORTIZATION
Up to 35 years.
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SUBORDINATE FINANCING
Permitted; supplemental loans are not available.
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TAX AND INSURANCE ESCROWS
Required.
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FEES
Application fee, commitment fee, plus other fees as applicable.
-
PRICING
Transactions will be priced at a spread to 30-day SOFR.
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SECURITIZATION
Yes, using our M Deals.
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YIELD MAINTENANCE
Minimum 10 years’ prepayment protection.
1 May include bond refunding, substitution or new issue transactions with 80-20 bonds, combination bonds, Section 8, Section 236, tax abatements and LIHTC.
2 Adjustments may be made depending on the property, product and/or market.
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.