Freddie Mac's Float-to-Fixed-to-Float 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 a range of loan terms, amortizing or interest only payments,
as well as supplemental mortgages Freddie Mac offers borrowers the opportunity to maximize their savings by choosing an initial period at a low floating rate, followed by a fixed rate period, and a final floating rate period during which the borrower can arrange for refinancing and repay the loan at par.
Freddie Mac also offers standard or early rate lock delivery options on their Float-to-Fixed-Float loans, making it possible for borrowers to lock in a desirable spread on their floating rate and a low fixed interest rate as early as 60 days before the loan closes.
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 1 or 2 year term (initial floating rate term)
4 to 13 year term (fixed rate term)
Fully amortizing loans available
Interest rate Spread on the initial floating rate and the fixed interest rate are determined at Early Rate Lock or commitment
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 during initial floating and fixed rate periods. Prepayable at par during the final 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 Typically required
Assumability Assumable with lender approval for standard fixed rate mortgage. Not assumable during the 1-year floating rate period.
Supplemental mortgages One per year on qualifying properties
Available only in select regions. Contact us to find out if your
property qualifies.