Freddie Mac’s new “Green Advantage” Loan Program
Freddie Mac’s new “Green Advantage” program can provide both better pricing and higher proceeds for multifamily projects that will undergo energy saving upgrades.
If you’re already planning an upgrade program for your next acquisition, allocate some of your budget ($350/unit minimum) for efficiency updates and you may be able to get up to 85% LTV financing.
In addition to better loan terms, going green may give you access to various state and federal incentive programs and tax credits. And, of course, it will save you money too! Remember, for every $100 in lower operating costs you will create $2,000 in value for a 5% cap-rate project or $1,250 for an 8% cap-rate project.
Call your financing advisor to see what options are available for financing your next acquisition or upgrade project.