How DSCR (Debt Service Coverage Ratio) Affects the Loan Amount
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,…
Read MoreMay 11, 2022 – Freddie Mac Reduces Interest Only Interest Rate Addition and Increases Interest Rate Discount for Rent Affordability – Big and Positive Changes
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…
Read MoreInterest Rates Increase for Freddie Mac SBL Apartment Loan Program – Effective 2-15-2022 UPDATED 4-13-2022
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…
Read MoreFannie Mae Reduces Multifamily Small Loan Interest Rates Up To 45 BPS – Effective October 12, 2021
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…
Read MoreFreddie Mac and Fannie Mae Small Loan Programs Get Even Better With Free Appraisals For A Limited Time
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…
Read MoreInterest Rates Decrease for Freddie Mac SBL Apartment Loan Program – Effective 9-28-2021
Effective 9/28/2021 Freddie Mac has decreased interest rates for its SBL program. This was a bit of a surprise move by Freddie Mac as Treasury yields have been on the move as of late reaching an 8 month high this week. Interest rate pricing updates are effective for all loans taken under application on…
Read MoreFreddie Mac Bumps Interest Rates for the SBL Program – Effective 9-14-2021
Effective 9/14/2021 Freddie Mac has increased interest rates for their SBL program. The Freddie Mac Small Apartment Loan (SBL) program fills a gap in the small multifamily loan space ($1MM-$7.5MM) for borrowers seeking competitively priced, non-recourse debt. Interest rate pricing updates are effective for all loans taken under application on or after September 14,…
Read MoreFreddie MAC SBL Turn Time Currently at 17 Business Days
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…
Read MoreFannie Mae and Freddie Mac Multifamily Sponsorship Eligibility
A question we get often at CREFCOA is related to Fannie Mae and Freddie Mac sponsorship eligibility requirements. Under the Fannie Mae and Freddie Mac multifamily lending platforms the agencies require sponsors to meet specific eligibility requirements. The four main eligibility requirements are: 1. 5+ unit multifamily experience 2. Net worth 3. Liquidity 4. Credit…
Read MoreFreddie Mac SBL Interest Rate Change – Effective July 2, 2021
During a period of sharply falling Treasury yields, Freddie Mac SBL interest rates just got a bump higher. While Freddie Mac’s SBL interest rates aren’t directly tied to Treasury yields, they do tend to move in step with Treasuries so this was a bit of a surprise. Interest rate pricing updates are effective for all…
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