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.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
