Effective May 11, 2022, Freddie Mac has made the following changes to its Small Balance Multifamily Loan (SBL) program. Interest Only Payments – Freddie Mac has reduced the addition to the base interest rate from 4 bps to 1 bps for each year of interest only. This is a positive move for Freddie Mac borrowers…

4/13/22 Update Effective 4/12/22 Freddie Mac increased interest rates on its SBL program by 30 bps on the 5-year and 7-yr fixed and hybrid term and 35 bps on the 10-year fixed and hybrid term. 4/4/22 UPDATE  Since the 2/24/22 update Freddie Mac has had two additional rate increases for its SBL program. The 4/4/24…

Effective 10/12/2021 Fannie Mae has reduced interest rates on its Small Loan program (loans under $6M) up to 45 bps.  Below are the changes to Fannie Mae Multifamily Small Loan pricing, which are effective for all loans not yet quoted. Fannie Mae has: Decreased the high and low end of the indicative pricing range by…

Known as being the most competitive apartment and multifamily loan programs in the market, the Fannie Mae Small Loan and Freddie Mac SBL programs through CREFCOA just got even better with the cost of the appraisal (up to $3,500) being credited back at closing. The appraisal credit* applies to all eligible loans taken under application…

With valuations at all time highs, many properties aren’t able to support a lender’s minimum debt service coverage requirement at the maximum loan-to-value (LTV). When a property’s debt service coverage ratio (DSCR) is below the minimum at a lender’s maximum LTV the loan amount must be reduced to maintain the minimum DSCR. When this happens,…

Under the Freddie Mac SBL program (small apartment loan program for loan sizes between $1M-$7M) it’s currently taking Freddie Mac 17 business days to turn around a draft commitment letter (DCL). Freddie Mac rolled out the SBL program in October of 2014. At the time, Freddie was able to turn around a DCL in 10…