Whether you are new to apartment financing or a seasoned apartment operator the Freddie Mac small balance loan program can be an excellent choice for your apartment loan. The Freddie Mac Small Balance Loan program allows you to take advantage of some of the most attractive multifamily loan pricing and flexibility in the market today.
Here are some key benefits of this multifamily loan product:
- Non-Recourse (bad boy carveouts)
- Rates are typically below Bank Rates.
- Longer Fixed Rate Loan terms – Up to 10 years.
- Loan Amortization up to 30 years
Apartment owners who qualify for the Freddie Mac Small Balance loan program get the same benefits of low rates, non-recourse and prepayment flexibility as the larger multifamily projects. Furthermore, the loan application process is non-complicated and streamlined.
Not sure if the Freddie Mac Small Balance Loan is good for you and your apartment project? There are some key differences between the Freddie Mac Small Balance Loan Program and the Fannie Mae Small Balance Loan Program and we can help you decide which is best for your apartment project. Some additional Freddie Mac Small Balance loan information is below and feel free to contact one of our Freddie Mac Loan Specialists by clicking apply now at bottom of page.
Freddie Mac Small Balance Loans
$1,000,000 – $7,000,0000 $750,000 with exceptions
LOCK IN RATE AT APPLICATION – Minimize Interest Rate Risk
LEVERAGE AND DEBT SERVICE CONSTRAINTS
Max LTV: 80% for purchases -80% for refinances – 1.20 DSCR minimum.
80% for purchases -80% for refinances – 1.20 DSCR minimum.
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.
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.
Yes. Subject to 1% fee and lender approval of borrower.
Non Recourse. Standard Bad Boy Carveouts Apply.
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