Freddie Mac Targeted Affordable Express

The Freddie Mac Targeted Affordable Express (TAH Express) program provides highly competitive terms for multifamily properties with an affordability component (HAP contract, LURA, LIHTC, Tax Abatements) that aren't eligible for financing through the Freddie Mac Small Balance Apartment Loan (SBL) program. The TAH Express program offers a simplified loan process with reduced document requirements, no borrower legal counsel required, low transaction costs and simplified loan documents.

Effective 2021: Freddie Mac no longer offers the TAH Express program.

• Loan amounts from $1MM to $10MM
• Highly competitive interest rates
• Interest rate spread locked at application
• Partial and full term interest only available
• Yield maintenance or declining prepay options
• No replacement reserve requirements
• Non-recourse
• Assumable
• Available nationwide
• Up to 80% LTV
• 30 year amortization
• 5, 7, 10 and 15 year fixed rate options available
• Converts to ARM at the end of the fixed term
• No underwriting floor rate maximizes proceeds
• Cash out to 80% in Top and Standard Markets
• Tax returns not required

$1,000,000 - $10,000,000.

Multifamily stabilized properties with one or more of the following affordable characteristics:

• LIHTC properties in at least year 11 of their compliance period
• Long-term HAP Contracts
• Regulatory Agreements (LURA) that impose rent/income restrictions
• Tax Abatements
• Section 8 vouchers

• Seniors housing (AL, IL, ALC, SN) with resident service
• Student housing (greater than 50% concentration)
• Military housing (greater than 50% concentration)
• LIHTC with LURAs in in compliance years 1-11
• Historic Tac Credit properties with a master lease structure
• Tax-exempt financing
• Rehabilitation financing

There are four Market Tiers under the Freddie Mac SBL Program. Every county in the country is designated as a Top, Standard, Small or Very Small Market. In general, counties in larger cities are designated as Top or Standard Markets while counties in smaller cities are designated as Small or Very Small Markets. Further, Tier designation is based on the size of the rental population, determined by the Census Bureau, and not necessarily by population.

There are five Regions (Western, South Central, North Central, Southeast and Northeast) under the Freddie Mac SBL Program. Interest rates vary by Region and Market Tier.

• 5-year.
• 7-year.
• 10-year.

• 5-year fixed + 15-year ARM.
• 7-year fixed + 13-year ARM.
• 10-year fixed + 10-year ARM.

• Index: 6-month SOFR.
• Margin: Call.
• Interest rate floor equal to start rate.
• Lifetime cap set at 5% above the start rate.
• 1% periodic rate adjustment every 6 months.

30 years.

1.20-1.40 depending on Market Tier.

No underwriting floor rate.

75%-80% depending on Market Tier.

85%-90%.

• 1 year for 5-year fixed term.
• 2 year for 7-year fixed term.
• 3 year for 10-year fixed term.
• Full fixed term interest only available (up to 10-years) for loans with a DSCR > 1.35 and LTV < 65% in Top and Standard Markets. Higher DSCR required in Small and Very Small Markets.

Actual/360.

• Yield maintenance or declining prepay options.
• 5-year fixed term: 5-4-3-2-1. Can be reduced with rate increase.
• 7-year fixed term: 5-5-4-4-3-2-1. Can be reduced with rate increase.
• 10-year fixed term: 5-5-4-4-3-3-2-2-1-1. Can be reduced with rate increase.
• 1% prepay during ARM term - can be waived if selling the property or refinance with a Freddie Mac.

Non-recourse subject to standard carve-outs.

Yes, subject to lender approval and a 1% assumption fee.

Real estate property tax required, but can be deferred for loans less than 65% LTV. Insurance escrow deferred. Replacement reserves deferred.

Not required.

Not permitted.

At application.

• 680 minimum credit score.
• Collective net worth of key principals must exceed loan amount.
• Minimum liquidity of nine months debt service.
• Local ownership no prior multifamily experience required.
• Non-local ownership requires one-year comparable multifamily ownership experience. Exceptions available in Top, Standard and Small Markets if non-local with strong mitigates.
• Foreign nationals with 2x program minimum net worth and liquidity and has US multifamily experience.

• Single asset entity required.
• Trusts and corporations only eligible on an exception basis.
• Tenants in Common (TIC) eligible with no more than 5 co-tenants and each co-tenant is a single asset entity.

• Any member or limited partner with more than a 25% interest in the borrower.
• All managers of the borrowing entity.
• All general partners of the borrower.

There is no better affordable housing loan program in the market for sub $10 million loans. The TAH Express Program is just that, express. It's a streamlined loan program with reduced documentation requirements. There is no borrower legal required which saves you money. No replacement reserve escrow, low interest rates and interest only options increase cash flow.