What is Freddie Mac Optigo and how does it compare to Fannie DUS?

The three Optigo channels

• •Conventional Optigo — $1M-$100M+ senior debt, K-Series securitization; the direct analog to Fannie DUS
• •Small Balance Loan (SBL) — $1M-$7.5M for 5+ unit properties; streamlined docs for smaller sponsors
• •Targeted Affordable Housing (TAH) — LIHTC / Section 8 deals with Mission Driven pricing and longer IO

Standard Conventional Optigo parameters

• •Term: 5/7/10/12/15/20 years; 30-year amortization; up to 10-year full-term IO at ≤65% LTV
• •LTV: up to 80% market-rate / 75% affordable / 75% senior / 65% student
• •DSCR: 1.25x standard, 1.30x full-term IO, lower on affordable
• •Prepayment: yield maintenance during lockout; defeasance available on K-Series; open at par the last 3-6 months

Key differences vs Fannie DUS

• •Defeasance via CMBS bond purchase is available on Conventional Optigo K-Series; Fannie DUS uses yield maintenance only
• •Tier classifications overlap but aren't identical — one agency can beat the other on the same deal in some secondary markets
• •SBL ceiling is $7.5M vs Fannie's $9M Small Loan ceiling
• •Freddie's TAH program is generally more developed than Fannie's Mission Driven equivalent
• •Optigo Green Up rebates 15-30 bps and/or a forgivable deferred-loan portion for qualifying energy retrofits