Freddie Mac Multifamily
Small Balance Loans
Now offering standard loan limits of $1 million to $6 million in all markets, and up to $7.5 million in top and standard markets for certain properties.
Now offering standard loan limits of $1 million to $6 million in all markets, and up to $7.5 million in top and standard markets for certain properties.
- Choice and Flexibility – Six fixed rate and hybrid ARM loans
- Unbeatable Terms – Interest-only, coupon pricing and declining prepayments
- Ingenuity – In-market experts craft creative solutions on single and pooled loans
- Fast and Simple – Streamlined, quote to close
- Commitment to Service – A partner for the life of your loan
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Let us provide you with a highly competitive quote for your next acquisition or refinance.
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PROGRAM HIGHLIGHTS
- Non-Recourse
- Highly competitive rates
- Flexible terms and prepayment options
- Streamlined process – faster closing times
- Interest only available
- Up to 80% LTV in certain areas
TOP MARKETS (MSA)
Boston, Chicago, Dallas, Denver, Los Angeles, Miami, Minneapolis, New York, Portland, Sacramento, San Diego, San Francisco, San Jose, Seattle and Washington D.C.
FHLMC Small Balance Loan Program
LOAN AMOUNTS | $1M – $6M in all markets; $1M – $7.5M in Top and Standard Markets for properties with 100 units or less |
LOAN PURPOSE | Acquisition or Refinance (Cash Out Available) |
ELIGIBLE PROPERTIES | Conventional multifamily housing with five residential units or more. Mixed use subject to limitations. |
LOAN TERMS | 20 Year Hybrid ARM with initial 5-, 7-, or 10 year fixed rate period 5-, 7-, or 10-year fixed-rate mortgage |
INTEREST ONLY | Partial interest-only available Full-term interest-only may be available |
AMORTIZATION | Up to 30 years |
PREPAYMENTS | Declining schedules and yield maintenance available for all loan types |
DEBT SERVICE COVERAGE | 1.20x Top 1.25x Standard 1.30x Small 1.40x Very Small |
MAXIMUM LTV | 80% available in Top and Standard Markets |
RECOURSE | Non-recourse with standard carve-out provisions |
CREDIT | Minimum FICO score of 650 |
OCCUPANCY | Minimum 90% occupancy of units for 90 days prior to underwriting |
PROGRAM HIGHLIGHTS
Finally, a bridge program designed specifically for small balance MF properties.
- Fast and streamlined closings
- Highly efficient and low cost to roll into permanent loan
- Non-recourse
- Competitive rate and terms
INFORMATION NEEDED TO EVALUATE:
- Current rent roll with both In-Place Rents and Market Rents, ideally supported with rent comp data
- Estimate of Stabilized NOI
- Estimate of Stabilized Value, ideally with support for exit cap rate, value / unit and value / sf
- Detailed renovation budget
- Sponsor information, ideally PFS, SREO and bio describing re-position experience
FHLMC Stabilization Bridge Financing
LOAN AMOUNTS | $2.5M – $7.5M |
MARKETS | Nationwide |
LOAN TERMS | Typically 15-month base term + two 3-month extensions |
LOAN PURPOSE | Acquisition or Refinance |
ELIGIBLE PROPERTIES | Conventional multifamily housing with five residential units or more. Mixed use subject to limitations. |
RENOVATION | Periodic advances from escrow accounts to fund renovation costs |
RATE | Floating, minimum of 1-month Libor + 450 bps |
MIN INTEREST CHARGE | 6 months |
AMORTIZATION | None, Interest Only |
ORIGINATION FEE | 1% |
EXIT FEE | No exit fee if property refinanced with INSIGNIA |
EXTENSION FEE(S) | 25 bps for each 3-month extension |
MINIMUM DSCR | 0.85x (on In-Place NOI) |
MAXIMUM LTV | 80% |
MAXIMUM LTC | 80% |
RECOURSE | Non-recourse with standard carve-out provisions |
SPONSOR | Minimum FICO score of 650; no foreign borrowers |
NET WORTH & LIQUIDITY | Net worth > 100% of estimated perm loan Liquidity > 9 months of debt service on estimated perm loan |
PROGRAM HIGHLIGHTS
- ARM and fixed-rate options
- Full-Term Interest Only Available
- Up to 80% LTV / 1.20x min DSCR in Top Markets
- 30-year amortization
- Declining prepayment option
- Lower transaction costs
- Certainty of execution
Affordable Housing Express
MARKETS | Nationwide |
MAXIMUM LOAN AMOUNT | $10 million or less in all markets |
LOAN PURPOSE | Acquisition or Refinance |
LOAN TERMS | 5, 7, 10 or 15 year fixed-rate loan; 5, 7 or 10 year floating-rate loan |
AMORTIZATION | 30 years |
INTEREST-ONLY | Partial-term interest-only; full-term interest-only may be available |
PREPAYMENTS | Declining Schedule and Yield Maintenance for all loan types; Defeasance also available for fixed-rate loans
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NET WORTH AND LIQUIDITY | Net Worth: Equal to loan amount Liquidity: Equal to 9 months of principal and interest |
RECOURSE | Non-recourse with standard carve-out provisions required |
ELIGIBLE TRANSACTIONS | Uncapped multifamily stabilized properties with one or more to the following affordable characteristics:
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