Freddie Mac Multifamily
Small Balance Loans
We enable savvy real estate investors to seize opportunity with greater certainty of execution, a streamlined process, and an exceptional experience when financing apartment buildings and multifamily properties.
- Acquisition or Refinance
- Choice and Flexibility
- Unbeatable Terms
- Streamlined from Quote to Close
- Commitment to Service
Extraordinary Service
Exceptional Results
We specialize in arranging commercial real estate financing for most property types, including assisted living, healthcare, hospitality, industrial, medical office, multifamily, net lease, retail, build-to-rent, special use, and more.
Performance
We are client-centric and performance driven dealmakers. Your success is our success.
Specialization
We're seasoned commercial mortgage lending professionals with thousands of loans funded.
Certainty
We help you capitalize on opportunities with greater certainty of execution.
Discuss your needs with us
PROGRAM HIGHLIGHTS
Non-Recourse
Highly competitive rates
Flexible terms and prepayment options
Streamlined process – faster closing times
Interest only available
Up to 80% LTV in certain areas
TOP MARKETS (MSA)
Boston, Chicago, Dallas, Denver, Los Angeles, Miami, Minneapolis, New York, Portland, Sacramento, San Diego, San Francisco, San Jose, Seattle and Washington D.C.
FHLMC Small Balance Loan Program
| LOAN AMOUNTS | $1M – $9M |
| LOAN PURPOSE | Acquisition or Refinance (Cash Out Available) |
| ELIGIBLE PROPERTIES | Conventional multifamily housing with five residential units or more. Mixed use subject to limitations. |
| LOAN TERMS | 20 Year Hybrid ARM with initial 5-, 7-, or 10 year fixed rate period 5-, 7-, or 10-year fixed-rate mortgage |
| INTEREST ONLY | Partial interest-only available Full-term interest-only may be available |
| AMORTIZATION | Up to 30 years |
| PREPAYMENTS | Declining schedules and yield maintenance available for all loan types |
| DEBT SERVICE COVERAGE | 1.20x Top 1.25x Standard 1.30x Small 1.40x Very Small |
| MAXIMUM LTV | 80% available in Top and Standard Markets |
| RECOURSE | Non-recourse with standard carve-out provisions |
| CREDIT | Minimum FICO score of 650 |
| OCCUPANCY | Minimum 90% occupancy of units for 90 days prior to underwriting |
PROGRAM HIGHLIGHTS
Finally, a bridge program designed specifically for small balance MF properties.
Fast and streamlined closings
Highly efficient and low cost to roll into permanent loan
Non-recourse
Competitive rate and terms
INFORMATION NEEDED TO EVALUATE:
Current rent roll with both In-Place Rents and Market Rents, ideally supported with rent comp data
Estimate of Stabilized NOI
Estimate of Stabilized Value, ideally with support for exit cap rate, value / unit and value / sf
Detailed renovation budget
Sponsor information, ideally PFS, SREO and bio describing re-position experience
FHLMC Stabilization Bridge Financing
| LOAN AMOUNTS | $2.5M – $7.5M |
| MARKETS | Nationwide |
| LOAN TERMS | Typically 15-month base term + two 3-month extensions |
| LOAN PURPOSE | Acquisition or Refinance |
| ELIGIBLE PROPERTIES | Conventional multifamily housing with five residential units or more. Mixed use subject to limitations. |
| RENOVATION | Periodic advances from escrow accounts to fund renovation costs |
| RATE | Floating, minimum of 1-month Libor + 450 bps |
| MIN INTEREST CHARGE | 6 months |
| AMORTIZATION | None, Interest Only |
| ORIGINATION FEE | 1% |
| EXIT FEE | No exit fee if property refinanced with INSIGNIA |
| EXTENSION FEE(S) | 25 bps for each 3-month extension |
| MINIMUM DSCR | 0.85x (on In-Place NOI) |
| MAXIMUM LTV | 80% |
| MAXIMUM LTC | 80% |
| RECOURSE | Non-recourse with standard carve-out provisions |
| SPONSOR | Minimum FICO score of 650; no foreign borrowers |
| NET WORTH & LIQUIDITY | Net worth > 100% of estimated perm loan Liquidity > 9 months of debt service on estimated perm loan |
PROGRAM HIGHLIGHTS
ARM and fixed-rate options
Full-Term Interest Only Available
Up to 80% LTV / 1.20x min DSCR in Top Markets
30-year amortization
Declining prepayment option
Lower transaction costs
Certainty of execution
Affordable Housing Express
| MARKETS | Nationwide |
| MAXIMUM LOAN AMOUNT | $10 million or less in all markets |
| LOAN PURPOSE | Acquisition or Refinance |
| LOAN TERMS | 5, 7, 10 or 15 year fixed-rate loan; 5, 7 or 10 year floating-rate loan |
| AMORTIZATION | 30 years |
| INTEREST-ONLY | Partial-term interest-only; full-term interest-only may be available |
| PREPAYMENTS | Declining Schedule and Yield Maintenance for all loan types; Defeasance also available for fixed-rate loans
|
| NET WORTH AND LIQUIDITY | Net Worth: Equal to loan amount Liquidity: Equal to 9 months of principal and interest |
| RECOURSE | Non-recourse with standard carve-out provisions required |
| ELIGIBLE TRANSACTIONS | Uncapped multifamily stabilized properties with one or more to the following affordable characteristics:
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Contact Us
The team at IMPACT Commercial Real Estate Capital is available to discuss your financing objectives and answer any questions you may have.
Send us a secure message using the form below.