Thursday, June 1, 2017

Understanding Freddie Mac Apartment Loans

For more information on Freddie Mac Loans please visit us at Small Balance Program is for the acquisition or refinance of small balance loans providing liquidity, stability, and certainty of execution to the affordable rental housing market nationwide.

Key Benefits of the Freddie Mac Small Balance Program are as follows.

Financing of small balance loans using hybrid ARM or fixed-rate mortgage products, offering partial-term and full-term interest-only, A Streamlined processes during pricing, underwriting, closing and funding as well as Competitive pricing and Streamlined loan documents

Property types eligible are as follows:

Conventional multifamily housing with five residential units or more, including conventional housing with tax abatements and Section 8 vouchers.

Loan amounts range from $1-5MM

Max LTV is 80%

Term length ranges from 5-10 years.

The terms are fixed that either balloon or roll over to a 20 year hybrid

Amortization goes up to 30 years

The prepayment penalty is yield maintenance, 5% declining, or 3% declining

Small Balance loans are Non-recourse

The borrower Can rate lock up to 120 days in advance of closing

Additional loan features are as follows: The borrower can choose to have cash out, , small balance loans are assumable, replacement reserves and insurance escrow is waived, tax escrow is waived for LTVs at 65% or lower, credit score is a minimum of 650 or better, last but not least, the borrower’s net worth needs to be equal to the loan amount and their liquidity needs to be equal to 9 months of debt service payments.

For more information please visit us at may contact us at 800-687-0797

CLD Capital, Inc.

3399 Peachtree Rd NE

Suite 1750

Atlanta, GA 30326

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