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)