Freddie Mac's Float-to-Fixed-to-Float
program* provides financing for the acquisition, refinance, and moderate
rehabilitation of multifamily properties. Freddie Mac is committed to
competitive, market-driven pricing that provides the lowest rates and spreads
for the highest quality loans while providing flexibility and a broad range of
loan terms.
In addition to a range of loan terms,
amortizing or interest only payments, as well as supplemental mortgages, Freddie
Mac offers borrowers the opportunity to maximize their savings by choosing an
initial period at a low floating rate, followed by a fixed rate period, and a
final floating rate period during which the borrower can arrange for refinancing
and repay the loan at par.
Freddie Mac also offers standard or
early rate lock delivery options on their Float-to-Fixed-to-Float loans, making
it possible for borrowers to lock in a desirable spread on their floating rate
and a low fixed interest rate as early as 60 days before the loan closes.
PNC ARCS is one of America's leading
commercial lenders with an acknowledged expertise in multifamily finance and one
of America's leading Fannie Mae DUS™ lenders for more than a decade.
As a PNC Real Estate Finance Company,
PNC ARCS is part of PNC Financial Services, one of the largest diversified
financial services companies in America. Now PNC ARCS can provide access to debt
and equity financing, construction loans, permanent financing, forward
commitments, tax credits, direct bond purchase programs, mezz, bridge, Fannie
Mae, Freddie Mac, FHA and Capital Markets. One single source to meet our
borrowers' needs.
The company is now the single source
for all real estate financing across the full range of commercial property
types.
Beyond the benefits of any specific
lending product, PNC ARCS' experience, expertise and unwavering commitment to
extraordinary customer service are what set us apart from the rest. No one
delivers more.
*Available in CA, HI, NJ , NY and southern CT. Geographic waivers are available on a case-by-case basis. Contact your loan representative for more information
Product Overview
Eligibility Garden, mid and high-rise apartments, co-ops and senior housing properties
Loan Amounts $3 million minimum. $50 million maximum.
Term/Amortization 1 or 2 year term (initial floating rate term)
4 to 13 year term (fixed rate term)
Fully amortizing loans available
Interest Rate Spread on the initial floating rate and the fixed interest rate are determined at Early Rate Lock or commitment
Debt Service Coverage 1.25x minimum
Loan to Value 80% maximum
Delivery Options Standard or early rate lock options available
Personal Recourse None, except for typical lender "Carve-Outs"
Prepayment Prepayable in full, subject to applicable yield maintenance during initial floating and fixed rate periods. Prepayable at par during the final 1 year floating rate period.
Commitment Fee Required (refundable)
Third Party Fees Includes appraisal, environmental, and engineering reports
Minimum Occupancy Requirement 90% for 90 days prior to loan closing
Replacement Reserve Impounds Typically required
Assumability Assumable with lender approval for standard fixed rate mortgage. Not assumable during the 1 year floating rate period.
Supplemental Mortgages
One per year on qualifying properties
Available only in select regions. Contact us to find out if your property qualifies.