Freddie Mac NOAH Preservation Financing

Financing for the Preservation of Naturally Occurring Affordable Housing Insured by Freddie Mac

Designed to assist the nonprofits that aim to preserve America's supply of affordable housing, the Freddie Mac NOAH Preservation Loan is the best financing option for the task. The program helps eligible nonprofit organizations acquire Naturally Occurring Affordable Housing (NOAH) properties in order to keep rents at a specific percentage of the Area Median Income (AMI), making rent more affordable for the low-income Americans who need it. Freddie Mac NOAH Preservation Loans offer LTV allowances of up to 80% and DSCRs as low as 1.20x. Plus, these loans have flexible terms up to 15 years and flexible amortizations up to 30 years, giving eligible nonprofits a variety of options to work with.

Sample Freddie Mac Terms For NOAH Preservation Loans 2021

Size: Varies based on LTV and DSCR requirements.

Use: Providing the financing for eligible nonprofits to acquire Naturally Occurring Affordable Housing (NOAH) properties in order to preserve their affordability for tenants.

Terms: Up to 15 years

Amortization: Up to 30 years

Maximum LTV: 80%

Minimum DSCR: 1.25x, 1.20x available with underwriting approval

Prepayment Penalty: Yield maintenance or defeasance (based on transaction structure)

Eligible Properties: Garden, mid-rise, or high-rise multifamily NOAH properties

Eligible Borrowers: 501(c)(3) nonprofit organizations with affordable housing preservation as a stated part of their mission and experience with successful property ownership.

Recourse: To be determined by Freddie Mac at commitment

Affordability Requirements: At least 50% of units need to have affordable rents at 60%, 80%, 100%, or 120% of the area median income (AMI) based on the market at the time of origination

Equity Requirements:

Nonprofit must meet at least one of the following:

  • Have an equity partner providing mission-focused equity
  • Contribute 100% of the equity themselves (leveraging soft debt as necessary)
  • Use the Freddie Mac Impact Gap Financing offering


  • Moderate rehabilitation permitted upon underwriting approval
  • LTV allowances up to 80%
  • DSCRs as low as 1.20x


  • Application fees, commitment fees, and other fees required
  • Servicing document review fee (discounted to $1,500 per review for items disclosed before origination)