FREDDIE MAC LIHTC PRESERVATION LOANS
Permanent financing or refinancing for stabilized low-income multifamily affordable housing properties in Dallas Fort Worth.
Apartment Loan Amount
Minimum $3 million
Freddie Mac Targeted Affordable Housing Preservation HUD-Risk Sharing Loans in Texas
Affordability Requirements
Low-income qualifying restrictions; 20% or more units rented to families earning at or below 50% of Area Median Income (AMI), or 40% or more units rented to families earning at or below 60% of AMI; however, other affordability types will be considered
Loan Amount
Minimum $3 million
Loan Term
7 to 30 years
Amortization
Up to 30 years
Loan-to-Value Maximum
80% of market value; 90% of market value with HUD Risk Sharing Loan-to-Value
Debt Service Coverage
- 1.25x (1.15x with HUD Risk Sharing)
- Cash-out Refinance: 1.30x (1.20x with HUD Risk Sharing)
Borrower
The Borrower must be a domestic single asset borrowing entity and single purpose entity (SPE)
Interest Rate
Risk-based pricing, varying with LTV, DSC ratios and cash out components
Prepayment
Yield Maintenance
Third Party Reports
MAI appraisal, Physical Needs Assessment, Environmental Phase I, Zoning, and Moisture Management reports are required; Seismic Report may be required for properties in Seismic Zones 3 and 4
Reserves
Tax and insurance escrows are required per the TAH Guide; Funded Repair and Replacement escrow is required based on engineer’s Physical Needs Assessment; For Loans at less than 70% of value with no deferred maintenance, funding of repair and replacement reserve can be waived, with Freddie Mac approval
Application and Due Diligence Fees
- $2,500 non-refundable Application Fee to cover internal underwriting costs;
- $12,500 Due Diligence Fee to cover third party reporting and the greater of
- $3,000 or 0.1% to Freddie Mac as a non-refundable application fee
Origination Fee
Minimum origination fees will vary depending on the loan characteristics
Legal Fees
Estimated at $10,000 to $15,000 varying with characteristics of the deal
Timing
60 days from application to commitment, dependent on 3rd party report timing and Borrower’s submission of due diligence
Rate Lock
Rate lock occurs after commitment is issued
Assumability
Loan is assumable, subject to Freddie Mac and Servicer approval of the proposed replacement Borrower; Fees include one percent assumption fee, part of which is paid to Freddie Mac, and a processing fee to cover underwriting expenses to Freddie Mac and the Servicer
For current Freddie Mac Affordable Housing Preservation mortgage rates, contact our HUD-Risk Sharing lenders in Dallas.
Call For a Quote:
(214) 679-9673
Related Fannie Mae Loan Options
FANNIE GREEN
FANNIE HYBRID ARM
