March 29, 2018
Updated on May 9, 2018
We’re working to provide more affordable rental housing for lower-income families, through a new pilot to finance single-family rentals (SFR).
More than 40 percent of renters live in single-family homes—so it’s an important part of the rental market. And nationwide, low-income renters are struggling to find decent housing they can afford.
“This is a great opportunity to bring more affordable housing to those families who need it most,” said David Leopold, vice president of Targeted Affordable Sales & Investments at Freddie Mac Multifamily.
To be eligible for our pilot, a property must have at least 75 percent of units affordable to renters earning no more than 80 percent of Area Median Income (AMI). We encourage Borrowers with mission-based or non-profit strategies, in particular, to take advantage of this offering.
We’re pleased to announce our designated lenders in our single-family rental pilot program:
Recent SFR deals include TrueLane Homes, with Berkadia as our Seller/Servicer. The $11 million loan is for properties in states such as Texas, Missouri and Pennsylvania. Berkadia funded and Freddie Mac purchased a single loan secured by a first lien on 196 SFR homes. Freddie Mac plans to ultimately securitize these loans, selling senior guaranteed certificates and unguaranteed subordinate certificates to investors. The loan terms, structure and due diligence are largely the same as that of a traditional multifamily loan.
In another deal, working with CoreVest as the Seller, we sponsored the securitization of a pool of more than $200 million in SFR mortgage loans backed by properties in various states—including California, Alabama, and Illinois. Out of the 2355 properties, 71 percent of homes are affordable to people at 80 percent of AMI, with 1,894 homes for low-income tenants, and 331 affordable for very low-income residents.
Through this pilot, we aim to make more rental housing available to low-income families—in communities across the nation. It’s all part of our mission to bring liquidity, stability, and affordability to the rental market.
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