Agency financing · term sheets checked October 31, 2026
Freddie Mac TAH financing for LIHTC deals
Freddie Mac finances tax credit properties through its Targeted Affordable Housing (TAH) line. On its LIHTC term sheets the floor is 1.15x debt coverage, amortization runs up to 40 years, and forward commitments run up to 48 months. A 9% deal uses the 9% LIHTC Cash Loan (up to 90% of market value); a 4% deal uses the Tax-Exempt Loan or bond credit enhancement. Every term below is from Freddie Mac's own term sheets, linked under each table.
| Product | Deal | Max LTV | Min DCR | Term | Amortization |
|---|---|---|---|---|---|
| 9% LIHTC Cash Loan | 9%: forward, immediate, rehab | 90% of market value | 1.15x | 15-35 yrs* | 40 yrs |
| Tax-Exempt Loan | 4% bond deal | 85% adjusted / 90% market | 1.15x | up to 30 yrs | 40 yrs |
| Bond credit enhancement | 4% bonds | 85% / 90% fixed; 80% / 85% variable | 1.15x fixed; 1.20x variable | 15-35 yrs* | 40 yrs |
| TAH bridge | Bridge to a 4% syndication | 85% | 1.15x | 24 + 6 months | interest only |
* At least the lesser of 15 years or the remaining compliance period. From Freddie Mac term sheets read October 31, 2026 (footer dates shown under each table). Terms change without notice; the lender's commitment governs.
9% LIHTC Cash Loan
Three executions for 9% LIHTC properties: a forward commitment for new construction or substantial rehab, immediate funding to buy or refinance a stabilized property, and preservation rehab with tenants in place.
| Term | At least the lesser of 15 years or the remaining compliance period (15 years with HUD Risk Sharing); at most 35 years |
|---|---|
| Forward commitment | Up to 48 months with available extensions; funded or unfunded |
| Immediate funding | At least 7 years left in the tax credit benefit stream; 90% occupancy for 90 days |
| Preservation rehab | Up to 24 months of rehab and stabilization inside the term, interest only, cash or letter of credit for the gap until stabilization |
| Min DCR / max LTV | 1.15x / 90% of market value |
| Amortization | Up to 40 years |
| Prepayment | Yield maintenance |
| Rate lock | Early rate-lock or Index Lock on immediate funding only |
| Fees | Application and commitment fees; a delivery assurance fee on the forward |
Source: 9% LIHTC Cash Loan term sheet (Footer 02/25).
Tax-Exempt Loan (TEL)
Freddie Mac buys the tax-exempt loan directly, for 4% LIHTC properties: stabilized acquisitions and refinances, and forwards.
| Eligibility (immediate) | Stabilized 4% LIHTC property with at least 7 years remaining; 90% occupancy for 90 days |
|---|---|
| Term | Up to 30 years |
| Rate | Fixed; priced at a spread to the 10-year Treasury |
| Min DCR / max LTV | 1.15x / 85% of adjusted value or 90% of market value, as stabilized |
| Amortization | Up to 40 years |
| Forward commitment | 48 months (the sheet labels this a "minimum"; the other Freddie sheets say maximum) |
| Prepayment | Yield maintenance, minimum 10 years of prepayment protection |
Source: Tax-Exempt Loan (TEL) term sheet (Footer 02/25).
Bond Credit Enhancement with 4% LIHTC
Freddie Mac credit-enhances tax-exempt bonds on 4% deals: forward, immediate funding or preservation rehab.
| Term | Same rule as the 9% loan: at least the lesser of 15 years or the remaining compliance period; at most 35 years |
|---|---|
| Forward commitment | Up to 48 months; a funded forward needs a letter of credit during construction; unfunded also offered |
| Immediate funding | At least 7 years of compliance remaining |
| Min DCR | 1.15x fixed; 1.20x variable with a rate cap |
| Max LTV | Fixed: 85% of adjusted value or 90% of market value. Variable: 80% or 85% |
| Amortization / prepayment | Up to 40 years / fee maintenance |
Source: Bond Credit Enhancement with 4% LIHTC term sheet (Footer 02/25).
Preservation Rehabilitation
Moderate rehab of occupied affordable properties, with 4% or 9% LIHTC or none.
| With 4% LIHTC | DCR 1.15x fixed or 1.20x variable; LTV 85% adjusted or 90% market (fixed); 40-year amortization; fee maintenance |
|---|---|
| With 9% LIHTC | DCR 1.15x; LTV 90% of market value; 40-year amortization; yield maintenance |
| Without LIHTC | Term 5 to 15 years; DCR 1.25x; LTV 80% |
| All | Rehab period of up to 24 months included in the term; gap collateral until stabilization |
Source: Preservation Rehabilitation term sheet (Footer 09/25).
TAH Bridge Loan
Bridge to a 4% LIHTC syndication, with milestones (bond inducement, 4% allocation, investor commitment) set in a loan agreement rider.
| Term | 24 months plus one 6-month extension; interest only; floating rate |
|---|---|
| Min DCR / max LTV | 1.15x / 85% |
| Fees | Extension 0.5%; breakage 2%; exit 2%, waived if refinanced into a TEL |
Source: TAH Bridge Loan term sheet (Footer 02/25).
What the term sheets don't say
Freddie Mac's term sheets don't give loan size limits, restricted-rent underwriting rules, Year 15 handling or investor requirements; those are in the Seller/Servicer Guide and the lender's underwriting. Pricing is never on a term sheet. Compare with Fannie Mae's MAH executions, and see how agency debt fits the rest of the deal in permanent loans and forward commitments.
Sizing check: the supportable debt calculator takes your DCR and LTV, and the capital stack builder shows the gap it leaves.
Questions people ask
What is Freddie Mac TAH?
Targeted Affordable Housing, Freddie Mac's product line for rent-restricted properties. For LIHTC deals it offers the 9% LIHTC Cash Loan, the Tax-Exempt Loan (TEL) and bond credit enhancement for 4% deals, preservation rehab loans and a bridge loan to a 4% syndication. Loans are made through Freddie Mac's Optigo lenders.
What is a Freddie Mac TEL?
A tax-exempt loan Freddie Mac buys directly instead of credit-enhancing publicly sold bonds. Its term sheet allows up to 30 years, 1.15x DCR, the lower of 85% of adjusted value or 90% of market value, 40-year amortization, a fixed rate priced over the 10-year Treasury, and yield maintenance with at least 10 years of prepayment protection.
How long can a Freddie Mac LIHTC forward run?
Up to 48 months with available extensions on the 9% cash loan and 4% bond credit enhancement. The TEL sheet lists 48 months as well, labeled as a minimum, which reads like a drafting slip; confirm with the lender.
Can Freddie Mac refinance a property late in its credit period?
Immediate funding on the 9% cash loan and the TEL requires at least 7 years left in the tax credit benefit stream (the 4% bond enhancement says 7 years of compliance remaining), plus 90% occupancy for 90 days on the 9% loan and TEL.
Pricing a Freddie Mac TEL or 9% forward?
Janover Capital compares agency, FHA and bank executions for 4% and 9% deals.