Multifamily borrowers will need to do far more in 2019 getting the reduced interest levels made available from Fannie May and Freddie Mac’s popular “green” lending programs.
“In this increasing interest rate environment, folks are planning to would you like to reduce their attention prices by any means they could, ” say Blake Cohen, senior manager, equity, debt and structured finance, with real-estate solutions company Cushman & Wakefield.
Borrowers have already been extremely enthusiastic about the green programs, that could lower the fixed rate of interest on permanent loans for apartment properties up to 25 % of a share point. In return for the low price, borrowers agree to renovations likely reduce energy or water usage in the home.
Borrowers rushed to obtain these reduced rates of interest in 2018, despite the fact that federal officials toughened their criteria when it comes to loans. The club shall be also greater in 2019.
Federal officials announce tougher needs for green loans
Interest in Fannie Mae and Freddie Mac’s green loans is expected to stay saturated in 2019, inspite of the tougher requirements. Read More