Freddie Mac Cash Loans for Affordable Housing Preservation

Loans for the Acquisition or Refinancing of Affordable Apartment Properties Insured by Freddie Mac

Investors and developers who want to refinance or acquire an affordable housing property can turn to Freddie Mac Cash Loans for Affordable Housing Preservation as an attractive means of financing. The program offers LTVs of up to 80% market value, amortizations of up to 30 years, and DSCRs as low as 1.20x, making them an excellent way to preserve affordable housing developments for those who need them. As an added benefit, Freddie Mac Cash Loans for Affordable Housing Preservation support eligible mixed-use properties, and offer both fixed and floating-rate options.

2021 Sample Freddie Mac Terms For Cash Loans for Affordable Housing Preservation

Size: Varies based on LTV and DSCR requirements.

Use: Financing for the acquisition or refinance of stabilized affordable multifamily properties.

Terms: Up to 15 years fixed or floating-rate financing

Amortization: Up to 30 years

Maximum LTV: 80% of market value

Minimum DSCR: 1.25x

Eligible Borrowers: Developers with strong financial capacity who have successfully completed multiple resyndications using 4% LIHTCs and tax-exempt debt.

Eligible Properties: Garden, mid-rise, or high-rise properties that meet affordability criteria. Must have 90% occupancy for at least 90 days.

Prepayment Penalty: Loan maintenance or defeasance, depending on the product

Occupancy Requirement: Must have 90% occupancy for at least 90 days.

Advantages:

  • Up to 80% market value LTV allowance
  • Eligible mixed-use properties supported
  • Floating and fixed-rate options
  • Subordinate debt allowed under certain circumstances

Disadvantages:

  • Application fee, commitment fee, and other fees typically required