Conventional and Targeted Affordable
mf.freddiemac.com/product/
The information in this document is not a replacement or substitute for information found in the
Freddie Mac Multifamily Seller/Servicer Guide. Terms set forth herein are subject to change without notice.
05/24
Long-Term Financing
Freddie Mac Multifamily created the Long-
Term Financing (LTF) facility to originate
larger pools for sponsors with ongoing
collateral addition and funding needs.
Our LTF is a portfolio management solution that enables experienced
sponsors to originate fixed- and floating-rate loans over time — with
various maturities and prepayment structures. Sponsors set up the
facility with a pool of properties and then can add, release or substitute
properties and originate additional loans that meet the facility
parameters.
The facility is cross-collateralized and cross-defaulted, and all the
properties support all the loans, permitting flexibility when releasing a
property. The cross also permits additional loans to be funded based
on improvements to pool DSCR and LTV. All loans are spot priced at
the time they are requested.
The Freddie Mac Difference
When it comes to multifamily finance, Freddie Mac gets it done. We
work closely with our Optigo
®
lenders to tackle complicated
transactions, provide certainty of execution and fund quickly. Contact
your Freddie Mac Multifamily representative today — we’re here to
help.
Borrowers Who Want to Know More
Contact one of our Optigo lenders at mf.freddiemac.com/borrowers/.
Product Snapshot
• Facility term of up to 15 years with no new
financings permitted during the last 5 years
of facility
• Varying loan maturities, prepayment terms,
and fixed- or floating-rate loan components
available within one facility — to provide
financing flexibility
• Add, release and substitute properties for
portfolio management
• Cross-collateralized and cross-defaulted
• Borrow up with spot pricing through
additional loans supported by pool-level
credit parameters
• Mission-driven business preferred but not
required
Conventional and Targeted Affordable: Long-Term Financing
mf.freddiemac.com/product/
The information in this document is not a replacement or substitute for information found in the
Freddie Mac Multifamily Seller/Servicer Guide. Terms set forth herein are subject to change without notice.
05/24
Standard Terms
Eligible Borrowers
• Focus on Select Sponsors and top-tier multifamily operators
• Each LTF can only have one sponsor
Eligible Properties
• Conventional multifamily housing (no student or seniors housing)
• Targeted Affordable Housing
• Loans may be used for acquisition or refinance
Amount
• $300 million minimum at facility origination
• $10 million minimum loan amount
• Maximum Commitment amount to be determined at origination of facility
Facility/Loan Terms
• Maximum facility term of 15 years
• Laddered maturities up to maximum term
• Full- or partial-term interest-only available
Prepayment
Provisions
• Fixed Rate – Yield Maintenance or other prepay structures
• Floating Rate – 1-year lockout, 1% thereafter
Asset Additions
• When the individual asset is underwritten and added, the asset must comply with the pool-level DSCR / LTV at
origination
• Individual assets must meet 1.25x DSCR and 80% LTV
Asset Substitutions
• Replacement asset(s) must meet asset quality parameters and be comparable with substituted asset(s)
• Substitutions are allowed up to twice per year and are not available in the first year or last year before maturity
Additional Proceeds
Additional proceeds must meet the pool-level DSCR / LTV requirement.
Asset Releases
• Must meet pool-level DSCR / LTV requirements
• Property releases are accompanied by applicable prepayment penalty
Tax, Insurance,
Replacement
Reserve Deposit
Generally required
Recourse
Requirements
Non-recourse except for standard carve-out provisions
Lock Options
Standard Delivery. Index Lock option is also available for fixed rate
Conventional and Targeted Affordable: Long-Term Financing
mf.freddiemac.com/product/
The information in this document is not a replacement or substitute for information found in the
Freddie Mac Multifamily Seller/Servicer Guide. Terms set forth herein are subject to change without notice.
05/24
For More Information
Contact your Facility Transactions representative:
Curtis Melvin, Senior Director, Production & Sales
703-714-2624 or curtis_m[email protected]
David Quadt, Associate Director, Production & Sales
703-714-3533 or david_qu[email protected]
Doug Smith, Manager, Production & Sales
703-714-3647 or dougla[email protected]
