McLEAN, VA—Freddie Mac has made enhancements to its Lease Up offering for newly-constructed multifamily properties. Under the changes, borrowers can now rate lock and close earlier.
Specifically, for properties with a 65% or lower loan-to-value in Tier 1 and 2 markets, the borrower can rate lock with as little as 40% occupancy. They can also close at a minimum 55% occupancy and net operating income equivalent to 1.0x interest-only debt coverage ratio, or 1.0x amortizing DCR in the case of an amortizing loan.
Separately, Freddie Mac launched its seventh multifamily K-Deal last week, for $1.1 billion. The K Certificates, backed by 105 recently-originated multifamily mortgages, are expected to settle on or about June 25, 2014.
The K-038 Certificates include two senior principal and interest classes, one senior interest only class and one junior interest only class.