Download Term Sheet
FREDDIE MAC OPTIGO®
Bond Credit Enhancement with Other Affordability Components
CREDIT ENHANCEMENTS FROM TAX-EXEMPT BONDS
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ELIGIBLE PROPERTY TYPES
Garden, mid-rise and high-rise multifamily properties with minimum occupancies of 90% for 90 days.
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TERMS
10 to 30 years.
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ELIGIBLE TRANSACTIONS
New credit enhancement facility or replacement of existing credit enhancement facility for tax-exempt bonds for refundings, substitutions and acquisitions.
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MAXIMUM AMORTIZATION
30 years.
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MINIMUM DEBT COVERAGE RATIO1 (DCR)
- Variable-rate with cap hedge: 1.25x.
- Fixed-rate: 1.25x.
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MAXIMUM LOAN-TO-VALUE (LTV) RATIO1
- Variable-rate with cap hedge: 80% of adjusted value or 85% of market value.
- Fixed-rate: 85% of adjusted value or 90% of market value.
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PREPAYMENT PROVISIONS
Fee maintenance required.
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SUBORDINATE DEBT
Permitted.
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RECOURSE REQUIREMENTS
Non-recourse except for standard carve-out provisions.
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APPRAISAL, ENVIRONMENTAL AND ENGINEERING REPORT
Required.
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PROPERTY AND REAL ESTATE TAX ESCROW
Required.
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FEES
Application fee, commitment fee, credit facility fee, outside counsel fees, plus other fees as applicable.
1Adjustments may be made depending on the property, product and/or market.
