Are you looking for a FREDDIE MAC Loan
Freddie Mac was created by Congress. It performs an important role in the nation’s housing finance system – to provide liquidity, stability and affordability to the mortgage market. Providing liquidity (ready access to funds on reasonable terms) to the thousands of banks, savings and loans, and mortgage companies that make loans to finance housing.
Freddie Mac buys mortgages from lenders and either hold these mortgages in their portfolios or package the loans into mortgage-backed securities (MBS) that may be sold. Lenders use the cash raised by selling mortgages to the Enterprises to engage in further lending. The Enterprises’ purchases help ensure that individuals and families that buy homes and investors that purchase apartment buildings and other multifamily dwellings have a continuous, stable supply of mortgage money.
By packaging mortgages into MBS and guaranteeing the timely payment of principal and interest on the underlying mortgages, Freddie Mac attracts the secondary mortgage market investors who might not otherwise invest in mortgages, thereby expanding the pool of funds available for housing. That makes the secondary mortgage market more liquid and helps lower the interest rates paid by homeowners and other mortgage borrowers.
Freddie Mac also can help stabilize mortgage markets and protect housing during extraordinary periods when stress or turmoil in the broader financial system threaten the economy. The Enterprises’ support for mortgage lending that finances affordable housing reduces the cost of such borrowing.
Eligible Property Types
Multifamily, Manufactured Housing Communities and Student Housing
There are many kinds of Freddie Mac Loans but most people I work with are buying a multifamily.
Here is an example of a popular Fannie Mae program for multifamily.
Multifamily (must contain at least 5 dwelling units)
Loan Amount: $1 Million to $7.5 Million in all markets.
Unit Limitations: Loan under $6 Million : No unit limits
Loan Purpose: Acquisitions or Refinance
Loan Terms: 20 year hybrid ARM with initial 5-,7-,or 10 year fixed rate period
5-.7-.or 10 year fixed rate loan.
Amortization: Up to 30 years
Interest-Only: Partial-Term interest-only, full term interest only may be available
Prepayments: Declining schedules and yield maintenance available for all loan types
Eligible Borrowers: Up to $6 million- Individuals who are US citizens; Limited partnerships; Limited Liability companies; Single Asset Entities; Special Purpose Entities; tenacity in common with up to five unrelated members; and trusts ( irrevocable trusts and revocable trusts with an individual guarantor) Between $6 Million and $7.5 Million- Single Asset Entities.
Recourse: Non- Recourse with standard carve-out provisions required
Subordinate Debt: Not Permitted
Net Worthy and Liquidity: Net worth: Equal to the loan amount
Liquidity equal to 9 months of principal and interest.
If you are interested in this loan program please email me your loan scenario?
If you are interested in purchasing or refinancing a Manufactured Housing Communities or Student Housing please advise and I will explain the Freddie Mac Loan Program that is a match.