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.
$1,000,000 - $10,000,000.
Multifamily stabilized properties with one or more of the following affordable characteristics:
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.
1.20-1.40 depending on Market Tier.
No underwriting floor rate.
75%-80% depending on Market Tier.
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.
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.