Structured Loans

Generally, $400 million or above but smaller unpaid principal balances (UPBs) will be considered.

Most product types currently offered by Freddie Mac (e.g., conventional, targeted affordable, seniors housing, student housing, manufactured housing communities).

Up to 30 years fixed rate, up to 10 years floating rate, or a mix of both.

Fixed rate: U.S. Treasury Securities

Floating rate: 30-Day Average SOFR

Early rate-lock option available for varying durations, typically ranging from 60 to 120 days until Freddie Mac purchase; Index Lock and Standard Delivery are also available.

Available subject to requirements specified in Freddie Mac’s underwriting guidelines; additional loan-level or aggregate loan-to-value ratio (LTV), debt service coverage ratio (DSCR) and net operating income tests may be required.

Loans are non-recourse except for standard carve-out provisions.

Tax, insurance and replacement reserves are generally required, subject to standard Freddie Mac underwriting criteria.

Variety of prepayment options available.

Full- or partial-term interest-only available.

Choice of crossed or uncrossed loans.

Available for uncrossed pools (fixed- and floating-rate); assumptions on a crossed pool may be permitted on a case-by-case basis.

Flexible release options available; may be subject to pool level LTV/DSCR test and premium payment, depending on deal structure.

Large transactions may be underwritten quicker with use of the Joint Underwriting Process.

A loan component structure provides ultimate flexibility for a borrower’s portfolio strategy, withoutrequiring identification of individual asset strategy at loan closing.

• Loan components allow borrowers to:
  • Mix fixed- and floating-rate debt.
  • Ladder maturities.
  • Include different prepay structures.
  • Designate an immediate sale pool of assets for open prepay.
• No need to designate which properties are assigned to the various loan components.
• Floating-rate components will prepay before fixed-rate components.
• Floating-rate component must not mature after fixed-rate component.
• Flexible asset releases options are available.