What is Freddie Mac Optigo?
What is Freddie Mac Optigo?
Freddie Mac Optigo® is a network of approved lenders that offers a suite of multifamily loan products and financing solutions for apartment properties. The Optigo platform aims to streamline the process of originating, underwriting, and servicing multifamily loans that Freddie Mac purchases and securitizes in the secondary market.
Here’s a breakdown of the key aspects of Freddie Mac Optigo®:
What Does Optigo Mean?
The term "Optigo" combines "optimize" and "go," signaling a focus on efficiency, speed, and innovation in multifamily lending. It reflects Freddie Mac’s commitment to creating a trusted, streamlined lending process with standardized terms and requirements across its network.
What Types of Properties Does Optigo Finance?
Optigo lenders finance a wide variety of multifamily property types, including:
- Market-rate apartments
- Affordable housing (Section 8, LIHTC)
- Student housing
- Senior housing
- Manufactured housing communities (MHCs)
- Workforce housing
- Small balance loans (typically $1M–$7.5M)
How Does the Optigo Network Work?
Freddie Mac doesn't lend directly to borrowers. Instead, it works through a select network of Optigo lenders, who are approved based on their experience, financial strength, and ability to manage multifamily loans.
The process typically looks like this:
- Borrower works with an Optigo lender
- Optigo lender underwrites and funds the loan
- Freddie Mac purchases the loan from the lender
- Loan is securitized into a Freddie Mac K-Deal® or other securitization program
Key Loan Programs Offered Through Optigo
Optigo lenders offer a range of multifamily loan programs, including:
What Makes Optigo Different?
1. Standardization & Efficiency
Optigo loans have standardized guidelines and requirements, which reduces variability in underwriting and ensures consistency across the board.
2. Flexible Loan Options
The Optigo network offers a range of tailored loan products to meet the needs of different multifamily properties, including long-term fixed-rate loans, floating-rate loans, and bridge loans.
3. Liquidity & Securitization
Freddie Mac securitizes most of its multifamily loans through its K-Deal program, which helps provide liquidity to the multifamily market while transferring risk to investors.
Benefits of Optigo for Borrowers
- Access to competitive rates through Freddie Mac’s securitization model
- Flexible loan terms and customized solutions for different property types
- Consistent underwriting standards across lenders
- Incentives for green upgrades through the Green Advantage® program
Who Are the Optigo Lenders?
Optigo lenders are carefully selected by Freddie Mac and include national and regional banks, life insurance companies, and independent mortgage banks. A few examples include:
- CBRE Capital Markets
- JLL
- Walker & Dunlop
- Greystone
- Berkadia
Borrowers need to work with these approved lenders to access Freddie Mac's multifamily loan programs.
Why It Matters for Multifamily Investors
Optigo is one of the most important sources of multifamily capital in the U.S. It's particularly important for affordable housing financing, where Freddie Mac plays a large role in ensuring that capital is available for underserved markets.
