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Benefits of Freddie Mac's Green Advantage Program


Freddie Mac offers significant financial incentives to go green. We’ll look at two programs, Green Up and Green Up Plus and their benefits.

First, these programs allow higher Loan-To-Values (LTV) and reduced Debt Service Coverage Ratios for properties that can demonstrate a 30% reduction in water/sewer and energy consumption. Fifteen percent of the thirty percent must come from energy consumption. A Green Assessment will need to be completed for properties that have never received a green certification. The costs could range between $3,000 and $4,000.

Properties that have had green certifications by Green Globes, Energy Star, EarthCraft certifications and have at least 20% affordable units may also be available for the Green Advantage programs.

Affordable Workforce Housing

Freddie Mac's Green Advantage program focuses on providing affordable rents for workforce housing. A certain percentage of units must have rents that are considered affordable, and these numbers will change on the basis of the property's location. Third-party consultants must monitor water and energy consumption during the loan term. 

Additional benefits of the Green Advantage programs include:

  • Reduction in energy and water costs
  • Reduction in greenhouse gas emissions
  • Upgraded lighting and water fixtures will reduce owners' expenses
  • Upgrades can lead to a healthier living environment for tenants


To be eligible for Green Up and Green UP Plus loans, the property must be conventional or Targeted Affordable Housing (TAH) cash preservation with a 10-year fixed term, excluding SBL, Seniors, Student MHCs, and supplementals.


The terms of the Green Advantage Loan Program allow borrowers to see a fifteen-basis point reduction in pricing compared to alternative conventional loan products. 

  • Multifamily property owners reduce their operating costs up to $10,000 per building depending on the size and number of units. 

Renters are attracted to green, efficient buildings and are willing to pay higher rents. These buildings are more comfortable and a give tenants a healthier environment than non-green apartments. As mentioned earlier, green buildings receive more favorable rates and higher loan proceeds from lenders.

Several Federal, State and local tax credits and rebates help subsidize the initial costs of improvements to make your project green.

If you plan on making your multifamily apartments green-certified, you'll want to prepare a plan on the improvements you intend to make. In addition, obtain estimates of the costs for the materials and labor to make your project green-certified. To make the most of your "green," contact LSG Lending Advisors for the most up-to-date information on the Green Advantage Program, rates, and term. Call us today!

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