Freddie Mac Optigo is the latest designation for Freddie Mac’s suite of multifamily loan offerings and its dedicated seller/servicer network. The name “Optigo” comes from the Freddie Mac multifamily ethos of providing customers with “optimal solutions” and “going further to meet their needs”. Creating the Optigo designation also helps the company better delineate between the multifamily financing branch and Freddie Mac’s broader business operations.

Freddie Mac Optigo holds the mission statement of expanding affordable rental housing for all Americans while building a better multifamily finance system. In an effort to accomplish this goal and “champion a better housing finance system”, Freddie Mac tends to fund units that are affordable for moderate to low-income renters as a general preference and transfer the majority of risk to private investors.

The Optigo network exists primarily to build a better future for the affordable rental housing market, for borrowers, lenders, investors, and renters most of all. Through a dedicated team of multifamily housing researchers, the network is able to have a limitless pool of fresh insights and a deeper understanding of current and past nuances in the affordable housing market. These insights help the members of the lender/servicer network become more flexible in understanding the needs of borrowers and investors and lead to more flexible and better-suited multifamily apartment financing for all.

Having a strong foundation built on up to the second industry insights only accounts for a portion of Optigo’s success. Without the vetted, approved network of Optigo lenders and servicers that truly strive to meet the needs of each unique borrowing entity on a case by case basis, they would definitely fall short of their goal. Add to that the suite of innovative loan products that cover acquisitions, refinances, and even rehabilitation of multifamily properties, and Freddie Mac’s Optigo network truly stands out as an industry leader.

Freddie Mac Optigo offers a suite of innovative loan products that cover acquisitions, refinances, and even rehabilitation of multifamily properties. These loan products include:

• Loan Size: Between $1 million and $7 million
• Loan Purpose: A loan can be used for acquisition or refinance.
• Unit Requirements: 5+ units
• Leverage:
  • Top Markets: 80% maximum LTV allowance for purchases and refinances
  • Standard Markets: 80% maximum LTV allowance for purchases and refinances
  • Small Markets: 75% maximum LTV allowance for purchases, 70% for refinances
  • Very Small Markets: 75% maximum LTV allowance for purchases, 70% for refinances
• Documentation: No tax return requirement
• Interest Options:
  • A 20-year hybrid ARM with a 5-, 7-, or 10-year fixed-rate loan period.
  • 5-, 7-, or 10-year fixed-rate loan
• DSCR:
  • Top Markets: Minimum 1.20 DSCR
  • Standard Markets: Minimum 1.25 DSCR
  • Small Markets: Minimum 1.30 DSCR
  • Very Small Markets: Minimum 1.40 DSCR
• Assumability: Assumable (with lender approval and 1% fee)
• Cash Out: Cash-out refinances are available
• Prepayment: Step down, yield maintenance, and soft step down options are available

For more information, please feel free to reach out to one of our apartment loan specialists for a risk-free consultation.

Freddie Mac Optigo offers a suite of innovative loan products that cover acquisitions, refinances, and even rehabilitation of multifamily properties. Through the Optigo network, borrowers can find flexible financing terms for a small balance loan. Additionally, Optigo offers Targeted Affordable Housing (TAH) and Optigo Conventional properties with Section 8 project-based contracts are eligible for cash loans. Properties with Section 8 tenant-based vouchers are eligible for cash loans for conventional sellers. TAH sellers can obtain credit enhancement for bonds and funding for tax-exempt loans (TELs). Borrowers must have demonstrated experience in owning and managing similar Section 8 properties. Eligible mixed-use properties are also supported.

In order to obtain an apartment loan through Freddie Mac Optigo, borrowers must have demonstrated experience in owning and managing similar Section 8 properties. Additionally, eligible mixed-use properties are supported. For more information on Freddie Mac Optigo, please visit Freddie Mac.

You can apply for an apartment loan through Freddie Mac Optigo by finding a Freddie Mac approved lender or reaching out to one of our apartment loan specialists for a risk-free consultation. To find a Freddie Mac approved lender, you can visit Optigo SBL Lenders.