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Freddie Expands Lease Up Offering for Newly-Constructed MF

McLEAN, VA—The GSE now allows borrowers to rate lock and close earlier with these changes.

By Erika Morphy | Updated on June 15, 2014

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.

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