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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DCR/LTV |
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Time to Complete Green Improvements | Two years to complete |
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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Eligible Loans | Discounted loan pricing for 10-year fixed-rate loans if at least 40% 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 | If your borrower does not choose any of the above Green Advantage options, a $5,000 rebate may be available for a borrower reporting an EPA ENERGY STAR® score. |
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