Borrowers

Are you a new or emerging borrower who does not yet work with us? Learn more about how Freddie Mac Multifamily works, who our Optigo^® lenders are and what kind of products we offer.

Process Overview

Borrowers’ needs and preferences drive the search for funding and ultimately determine the nature of the loan transaction.The first step is to reach out to an Optigo lender to learn more about the type of financing they provide, what the baseline requirements are to do business with them and ultimately if this will fit your needs.

Once a transaction has been established, lenders will retain the loans in their portfolio or sell them to a secondary market institution such as Freddie Mac. If an Optigo lender decides to sell to Freddie Mac, we work directly with the lender to structure a loan transaction that will fit the borrower’s needs. We may also retain the purchased loan(s), but most are pooled into commercial mortgage-backed securities (CMBS), which are then sold to CMBS investors.

Product Overview

• Conventional financing: Acquisition, refinance, or rehabilitation of multifamily communities including manufactured housing
• Small Balance financing: For buildings that are comprised of 5 to 50 units, and loan amounts between $1 million and $7.5 million.
• Targeted Affordable financing: Properties in underserved areas with rents that are affordable to families with low and very-low incomes and have public or mission-driven financial investment.
• Seniors Housing financing: Independent living properties, assisted living properties and properties with skilled nursing or memory care.

Recommended Products

The term sheets below give more detail for financing that would best fit the needs of emerging borrowers who are new to working with Freddie Mac.

• Conventional Financing: Fixed Rate Loan
  Flexible, streamlined financing solution and certainty of execution for the acquisition or refinance of multifamily housing properties.
• Conventional Financing: Floating Rate Loan
  The floating-rate loan is ideal for borrowers who want to take advantage of lower, short-term rates with prepayment flexibility and our lowest, most competitive note rate.
• Targeted Affordable Financing: Cash Loan for Affordable Housing Preservation
  Immediate, permanent financing with a maximum 15-year loan term.
• Targeted Affordable Financing: Tax Exempt Loan Immediate funding and forwards when buying or refinancing affordable multifamily properties financed with tax-exempt debt.
• Small Balance Financing: Small Balance Loan
  Includes 5, 7, and 10-year hybrid ARM and fixed rate options, declining prepayment options and more.

Click here to view all Freddie Mac Multifamily financing products.