Freddie Mac's Fixed Rate program provides financing for the acquisition, refinance, and moderate rehabilitation of multifamily properties. Freddie Mac is committed to offering competitive, market-driven pricing that provides the lowest rates and spreads for the highest quality loans while providing flexibility and a broad range of loan terms.
In
addition to 5-30 year terms, up to 30 year amortization and supplemental mortgages Freddie Mac offers standard or early rate lock options on their fixed rate loans, making it possible for borrowers to lock in a desirable interest rate as early as 12 months before the loan closes. Further cost savings are realized at the end of the loan term for borrowers who choose the fixed-to-float option which automatically converts the loan into a floating rate mortgage for an additional year during which time the borrower can arrange for new financing. The loan may be paid off at any time during the floating year at par.
Beyond
the benefits of any specific lending product, PNC ARCS' expertise and unwavering commitment to extraordinary customer service are what set us apart from the rest. And with specialists in capital markets, affordable housing, seniors housing, student housing, manufactured housing communities, FHA multifamily, as well as mezzanine/bridge financing, we can help meet your most critical financial and timing needs. No one delivers more.
Product overview
Eligibility Garden, mid and high-rise apartments, co-ops and senior housing properties
Loan amounts $3 million minimum. $50 million maximum.
Term/amortization 5 to 30 year term (standard)
5 to 15 year term (fixed-to-float)
Fully amortizing loans available
Debt service coverage 1.25x minimum
Loan to value 80% maximum
Delivery options Standard or early rate lock options available
Personal recourse None, except for typical lender "Carve-Outs"
Prepayment Prepayable in full, subject to applicable yield maintenance. Prepayable at par during 1-year floating rate period.
Origination fee Required (varies by loan amount)
Commitment fee Required (refundable)
Third party fees Includes appraisal, environmental, and engineering reports
Minimum occupancy requirement 90% for 90 days prior to loan closing
Replacement reserve impounds Required (waived under special circumstances)
Assumability Assumable with lender approval for standard fixed rate mortgage. Not assumable during the 1-year floating rate period.
Supplemental mortgages
Supplemental loan associated with DUS loan must be
used to pay off mezzanine loan.
Available only in select regions.
Contact us to find out if
your property
qualifies.