FREDDIE MAC®
Green Advantage
The Freddie Mac Green Advantage suite of offerings includes Green Up or Green Up Plus options. These financing programs reward borrowers who improve their properties to reduce their energy and/or water usage by 30% or those who already have green-certified properties and are looking for new financing. When you commit to reduce energy or water consumption, according to a Green Assessment or a Green Assessment Plus, borrowers can receive better pricing and maximize funding to make these enhancements. Green Advantage works with Freddie Mac Conventional, Targeted Affordable Housing (TAH) and Seniors Housing products.
| Green Assessment |
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| Green Assessment Plus |
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| Eligible Loans |
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| Minimum Projected Consumption Reduction |
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| Underwriting Approach |
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| Loan Proceeds and Sizing |
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| As-Is DCR/LTV |
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| As-Improved DCR/LTV (If Applicable) |
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| Minimum Green Improvement Budget | $250 per unit. |
| Time to Complete Green Improvements | Two years |
| Escrow Requirements | Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed |
| Benchmarking Data Collection | Green Up and Green Up Plus loans require borrowers to engage a third-party Collection data collection consultant prior to the origination of the loan to collect, input and monitor actual energy and water usage through the term of the loan |
| Required Third-Party Reports |
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| Green Certified | Discounted loan pricing for 10-year, fixed-rate loans if at least 50% of the property’s units are affordable at workforce housing levels. They must have an industry-standard green building certification:
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| Green Rebate | For multifamily properties with greater than 20 units, a $5,000 rebate may be available for a borrower reporting an ENERGY STAR Score. Rebate will be provided at settlement after all obligations and requirements are met. There is no minimum score required to receive the rebate |
V102021
