Freddie Mac Small Balance Apartment Loans

Freddie Mac Small Balance Apartment Loans 2018-05-29T15:33:09+00:00

LOAN AMOUNTS:

$1,000,000 – $7,000,0000  $750,000 with exceptions

LOCK IN RATE AT APPLICATION – Minimize Interest Rate Risk

  • Multifamily: 5+ unit market-rate multifamily properties.
  • Non-Contiguous Properties: Allowed with exceptions.
  • Occupancy: 90% for past 90 days (exceptions down to 85% and down to 30 days for new construction).
  • Mixed Use: Available subject to no more than 40% non-residential income and no more than 40% of net rentable area.
  • Ineligible: Senior housing, student housing, greater than 25% concentration of military and affordable housing.

LEVERAGE AND DEBT SERVICE CONSTRAINTS

Top Markets

Max LTV:  80% for purchases -80% for refinances – 1.20 DSCR minimum.

Standard Markets:

80% for purchases -80% for refinances – 1.20 DSCR minimum.

Small Markets:

75% for purchases – 70% for refinances – 1.30 DSCR minimum.

Very Small Markets:

Max LTV 75% for purchases – 70% for refinances – 1.40 DSCR minimum.

Prepayment Penalty:

Step down or yield maintenance. Soft-step downs are also available.

Interest Only Options Available

Max interest only period 1 year for 5 year terms, 2 years for 7 year terms, 3 years for 10 year terms.

Please note: I/O is not available for 5 year loans in small or very small markets, 1 year available for 7 year loans and 2 years available for 10 year loans.

Assumable:

Yes. Subject to 1% fee and lender approval of borrower.

Recourse:

Non Recourse.  Standard Bad Boy Carveouts Apply.

Application Fees:

  • $7,000 (covers 3rd Parties – Appraisal, Eng, Env, O&M’s)
  • 10 basis points of Loan Amount (Freddie Mac processing fee)

Borrower Requirements:

  • 9 months principal and interest liquidity
  • Net worth greater than the loan amount.
  • Minimum 650 credit score.
  • No bankruptcies, foreclosures, deed-in-lieu, or defaults for 7 years.
  • Borrower must be a US entity (single asset not required, but preferred).

READY TO SUBMIT YOUR LOAN TO OUR EXPERTS?

APPLY NOW