Multifamily Lending
Freddie Mac Conventional and Small Balance Loan Programs for the Acquisition and Refinance of Multifamily Properties.
Freddie Mac (FHLMC) is an agency lender that offers two main programs for financing multifamily properties. Freddie Mac Conventional loans generally range from $5 million to $100 million, while the Freddie Mac Small Balance Loan (SBL) program ranges from $1 million to $7.5 million in select markets.
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The Freddie Mac Conventional and SBL programs are nationwide, provide non-recourse debt, 30 year amortization, and an array of term lengths. Freddie also provides discounts through their green and affordability programs. For the affordability programs, a LURA agreement or HAP contract is generally not required. To qualify, rents must fall within a certain range when compared with market rents in that region.
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Freddie Mac Conventional Loan Program
Description
Non-recourse financing for the acquisition or refinance of stabilized multifamily properties. Freddie Conventional loans are assumable. Cash-out is available.
Loan Amount
Generally $5 million to $100 million
Loan Term
5, 7, and 10-year terms are most common. Terms up to 30 years are available.
Amortization
Up to 30 Years
Max Loan to Value
80%
Debt Service Coverage
Minimum 1.25x
Interest Only
Generally held to 1/2 the term of the loan. Full-term Interest Only is generally available at 70% LTV and below.
Prepayment Terms
Yield maintenance until securitized, followed by 2-year lockout. Defeasance thereafter. No prepayment penalty in final 90 days of the loan. If the loan is not securitized within the first year, then yield maintenance applies for the life of the loan. Yield maintenance without defeasance is available for securitized loans at an additional cost.
McBride Capital arranges refinancing for 879-unit multifamily portfolio
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McBride Capital is pleased to announce the refinance of a six-property apartment portfolio, with sites in Washington and Oregon. Refinancing for the 879-unit portfolio was arranged by Ken McBride through an Agency approved Lender Conventional Loan Program.
McBride Capital arranges refinancing for 498-unit multifamily portfolio
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McBride Capital is pleased to announce the refinance of a five-property apartment portfolio, with sites in Washington and Oregon. Refinancing for the 498-unit portfolio was arranged by Colin Kelley through an Agency approved Lender Small Balance Loan Program.
Freddie Mac Small Balance Loan Program
Description
For borrowers purchasing or refinancing small multifamily properties, the nationwide Small Balance Loan program offers highly competitive terms and a streamlined execution that can close in as fast as 30 days. SBL loans are non-recourse and assumable.
Loan Amount
$1 million to $6 million. $7.5 million in Top Markets
Loan Term
5, 7, or 10-year fixed-rate period.
or
20-year hybrid ARM with initial 5, 7, or 10-year fixed rate period
Amortization
Up to 30 Years
Max Loan to Value
80%
Debt Service Coverage
1.20x in Top Markets
1.25x in Standard Markets
1.30x in Small Markets
1.35x in Very Small Markets
Interest Only
Partial interest only
Full-term interest only may be available
Prepayment Terms
Declining schedules and yield maintenance available for all loan types