1. Home
  2. Freddie Mac Apartment Loans
  3. Freddie Mac Affordable Housing 9% LIHTC Cash Loans

Freddie Mac Affordable Housing 9% LIHTC Cash Loans

Freddie Mac Affordable Housing 9% LIHTC Cash Loans

The LIHTC Program provides the private market with an incentive to invest in affordable rental housing. Federal housing tax credits are awarded to developers of qualified projects. Developers then sell these credits to investors to raise capital (or equity) for their projects, which reduces the debt that the developer would otherwise have to borrow. Because the debt is lower, a tax credit property can in turn offer lower, more affordable rents. Provided the property maintains compliance with the program requirements, investors receive a dollar-for-dollar credit against their Federal tax liability each year over a period of 10 years.

Forward Commitment Immediate Funding Preservation Rehabilitation
Product Description Forward Commitment Immediate Funding Preservation Rehabilitation Product Description Forward commitment for new construction or substantial rehabilitation of affordable multifamily properties with 9% LIHTC Financing for the acquisition or refinance of stabilized affordable multifamily properties with 9% LIHTC with at least 7 years remaining in the LIHTC compliance period Financing for the moderate rehabilitation of affordable multifamily properties with new 9% LIHTC and tenants in place
Type of Funding Funded or unfunded construction financing commitment; permanent financing at conversion Permanent financing Financing for acquisition/ rehabilitation (for a maximum of 24 months) based on projected post-rehabilitation net operating income (NOI); cash or letter of credit collateral required to collateralize gap between supportable debt on current NOI and loan amount (collateral held until stabilization); interest only during the rehabilitation/ stabilization period
Eligible Properties To-be-built or substantially rehabilitated garden, mid-rise or high-rise multifamily properties with 9% LIHTC Garden, mid-rise or high-rise multifamily properties with 9% LIHTC with 90% occupancy for 90 days Garden, mid-rise or high-rise multifamily properties with 9% LIHTC that are undergoing moderate rehabilitation with tenants in place
Minimum DSCR DSCR Calculator 1.15x 1.15x 1.15x
Max LTV 90% of market value 90% of market value 90% of market value
Loan Term Maximum term: 35 years Maximum term: 35 years Maximum term: 35 years
Construction Loan Term Maximum forward commitment term: 36 months plus a free 6-month extension during construction period NA NA
Max Amortization 35 years 35 years 35 years
Prepayment Yield Maintenance Yield Maintenance Yield Maintenance
Tax and Insurance Escrows Required Required Required
Securitization Available No Yes No
Early Rate-Lock NA Early rate-lock or Index Lock options available NA

Program Plus Freddie Mac Loans

Program Plus Options
Fixed Rate Loans Floating Rate Loans
Lease-Up Loans Manufactured Housing Community Loans
Revolving Credit Facility Student Housing Loans
Supplemental Loans Value-Add Loans

Affordable Housing Freddie Mac Loans

Affordable Housing Options
9% LIHTC Cash Loans Bond Credit Enhancement with 4% LIHTC
Bond Credit Enhancement with Other Affordability Components Cash Loan with Other Affordability Components
Direct Purchase of Tax-Exempt Mortgages Preservation Rehabilitation Financing
Supplemental Loans Tax-Exempt Bond Securitization (TEBS)
Variable Liquidity Pricing

Other Freddie Mac Loans

Other Freddie Loan Types
Student Housing Loans Small Balance Loans
Freddie Mac Single-Family Rental (SFR) Pilot Program

Was this page helpful?

What Clients Say About Us

Our Reviews

Unfiltered Reviews
Fernando and Leanne are Amazing

Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever

- Nirav Patel

She Took Care of All My Needs

If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.

- Vincent Arias

Commercial Loan Direct Streamlined the Whole Process

We were in unfamiliar territory when it came to refinancing. Commercial Loan Direct streamlined the whole process for us. Leann connected us with lenders that were the right fit for us. The money and time we saved was so worth it. I highly recommend them

- Rita Pisarski