Freddie Mac Small Balance Multifamily Loan Programs
The Freddie Mac Small Balance Loan program is available for multifamily properties with 5+ units. High leverage, long amortizations and low rates makes this program very attractive.
Speritas Capital Partners only works with Freddie Mac Optigo® Lenders, a designation for approved lenders that provides a dedicated platform and quick underwriting.
We add value to your project by: (1) working with you to understand the Freddie Mac Small Balance requirements (see below); (2) introducing you to the right Optigo® lender – a lender that fits your project size, experience and timing; and (3) advising you throughout the process.
Freddic Mac small balance loans arranged by Speritas Capital feature:
Loan amounts: Up to $7.5 million in all markets
Unit count: loan amount ≤ $6 million: no unit limitations; loan amount between $6MM and $7.5MM: up to 100 units
Loan purpose: acquisition or refinance, including cash out
Loan terms: 20-year hybrid ARM with initial 5-, 7-, or 10-year fixed-rate period
Amortization: up to 30 years
Payment terms: Interest-only, partial-term interest-only; full-term interest-only
Prepayments: declining schedules and yield maintenance available
Up to $6MM — Individuals who are U.S. citizens; limited partnerships; limited liability companies; single asset entities; special purpose entities; tenancy in common with up to five unrelated members; and trusts
Between $6MM and $7.5MM – single asset entities
Recourse: non-recourse with standard carveout provisions required
Subordinated debt: generally not permitted
Minimum net worth: equal to the loan amount
Minimum liquidity: equal to 9 months of principal and interest
Eligible Properties: multifamily housing with five or more residential units or more
Commercial (non-residential) use: permitted in certain situations
Ineligible properties: senior housing; student housing (greater than 50% concentration); military housing (greater than 50% concentration)
– 90% physical occupancy for the trailing 3-month average prior to underwriting
– 85% physical occupancy for the trailing 3-month average prior to underwriting in specific situations
Other terms and conditions apply
You need a strategic, cost effective solution to your financing needs and a financing advisor you can trust. And one who never takes upfront fees. Let us put our decades of banking and structuring experience to work for you – contact Speritas Capital Partners about commercial bridge loans today.