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GENERAL: 800.ARBOR.10

FREDDIE MAC®

Green Advantage

Freddie Mac Green Advantage suite of offerings rewards both borrowers who improve their properties to save energy – or who already have green-certified properties and are looking for new financing. Choose Green Up or Green Up Plus. When you commit to reduce energy or water consumption by at least 25% according to a Green Assessment or a Green Assessment Plus, you may get better pricing and more funding to make these enhancements. Green Advantage works with Freddie Mac Conventional, Targeted Affordable and Seniors Housing products.

Green Assessment
  • Quick, straight-forward property analysis to show borrowers how they can save energy and/or water by making property inprovements
  • Can be completed within two weeks without adding to processing time
  • Reimburse up to $3,500 of the cost of the report when the borrower closes a loan
Green Assessment Plus
  • Highly detailed property analysis based on an ASHRAE level 2 energy audit
  • Reimburse up to $3,500 of the cost of the report when the borrower closes a loan
Minimum Projected Consumption Reduction
  • Green Up: 25% of energy or water/sewer consumption based on Green Assessment
  • Green Up Plus: 25% of energy or water/sewer consumption based on Green Assessment Plus
Underwriting Approach
  • Green Up: Recognize 50% of projected owner-paid energy and/or water/sewer savings based on Green Assessment
  • Green Up Plus: Recognize 75% of projected owner-paid energy and/or water/sewer savings based on Green Assessment Plus
Minimum Green Improvement Budget $250 per unit.
Time to Complete Green Improvements 2 years to complete. Work must commence within 180 days of loan origination.
Escrow Requirements Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed.
Benchmark Requirements Property energy and water usage must be recorded in EPA Portfolio Manager before closing and annually until 2 years after project completion.
Required Third-Party Reports
  • Green Up: Green Assessment
  • Green Up Plus: Green Assessment Plus
Green Certified Discounted loan pricing for properties – with at least one affordable rental unit – that have one of these eight industry-standard green building certifications:

  • EarthCraft, Greater Atlanta Home Builders Association & South Face
  • ENERGY STAR for Multifamily, EPA
  • ENERGY STAR for Qualified Multifamily High-Rise, EPA
  • Green Communities, Enterprise Community Partners
  • Green Globes, Green Building Initiative
  • GreenPoint Rated, Build It Green
  • LEED, U.S. Green Building Council
  • National Green Building Standard (NGBS), Home Innovation Research Labs
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.

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