Example Freddie Mac Terms for Apartment Loans

Size: Typically, $1 million, and up
Term: Fixed and floating rate options with 3, 5, 7 and 10-year terms

Interest Rates: Vary
‍Amortization: Up to 30 years
‍Maximum LTV: Up to 80%
‍Minimum DSCR: 1.25x


Advantages

  • Highly competitive pricing
  • Early rate lock option
  • Up to 80% LTV
  • Partial-term and full-term interest-only available
  • Non-recourse option
  • Loans are fully assumable


Disadvantages

  • Selective of the properties they will finance
  • Require financially strong and experienced borrowers
  • Can be expensive to exit (prepayment penalty, defeasance, or yield maintenance)


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