Freddie Mac just announced a new offering to finance smaller, affordable rental properties. The program, Targeted Affordable Housing Express, will provide a faster and cheaper process to cash preservation loans.
TAH Express allows borrowers to go through a condensed prescreen process and simplified legal documents. The program also offers a unique prepayment option, giving borrowers more flexibility when making payments.
This move from Freddie Mac is consistent with the GSE’s recent announcement that they were re-entering the low-income housing tax credit (LIHTC) market. “It’s an important component of our commitment to expand our reach in underserved markets – known as our Duty to Serve mandate,” said David Leopold, Freddie Mac Multifamily vice president of targeted affordable housing sales and investments.
- Targeted Affordable Housing Express offers faster, simpler, and cheaper financing for smaller rental properties
- The program is available in all markets for properties with a loan amount of $10 million or less
- Properties must have at least one affordable housing characteristic (i.e., LIHTC properties)
Freddie Mac announced its program, Targeted Affordable Housing Express, a new offering designed to provide faster, simpler and cheaper financing for the preservation of smaller, affordable rental properties.
“We’re excited to announce this new offering, which brings more choices, better terms, and a faster, simpler process to cash preservation loans,” said David Leopold, Freddie Mac Multifamily vice president of targeted affordable housing sales and investments.
“TAH Express is helping to make the preservation of affordable housing as simple and inexpensive as possible,” Leopold said. “It’s also an important component of our commitment to expand our reach in underserved markets – known as our Duty to Serve mandate.”
Through TAH Express, borrowers can use a condensed prescreen process, simplified non-negotiable legal documents and a standardized underwriting process, resulting in lower transaction costs. TAH Express also offers a “step-down” prepayment option, which provides more flexibility in the prepayment of these smaller loans.
The program is available for properties with a loan amount of $10 million or less. They must be stabilized and treated as entirely uncapped by the Federal Housing Finance Agency.
Properties must also have at least one of the following affordable characteristics: tax abatement, Section 8 Vouchers or a housing assistance payments contract, low-income housing tax credit properties in at least year 11 of compliance period or a regulatory agreement that imposes rent or income restrictions.
View the original article at Housing Wire