Does the Freddie Mac SBL Program Offer Rate Locks?
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Freddie Mac Optigo Small Balance Loans offer 60-120 day rate locks. This is ideal for multifamily borrowers, as it allows them to calculate their potential payments before they begin paying off their loan. Borrowers are typically required to pay a 1% loan deposit at rate lock, which will be fully refunded after closing.
Related Questions
What is the Freddie Mac SBL Program?
The Freddie Mac Small Balance Loan (SBL) Program is a loan program designed to assist small business owners in securing liquidity for their investments. The program ensures approved sellers and servicers have a platform dedicated to selling loans for smaller rental properties. Qualifying projects include multifamily properties with loans that range from $1 million to $7.5 million. Some of the key benefits and features of the program are competitive pricing, less documentation, a streamlined underwriting process, and either hybrid ARM or fixed-rate loan products.
In addition to the property requirement, servicers and sellers must also meet a specific set of guidelines. These include collateral, undergoing a rigorous assessment, B-piece purchase, loss sharing, repurchasing of delinquent SBLs and origination of at least $50 million per quarter.
What types of loans does the Freddie Mac SBL Program offer?
The Freddie Mac Small Balance Loan (SBL) program offers apartment financing in amounts between $1 million and $7.5 million. It offers a wide selection of fixed and variable rate terms from 5 and 20 years, with 30-year amortizations. It also offers an early rate lock option to avoid interest rate risk.
For more information, please see the following sources:
What are the benefits of the Freddie Mac SBL Program?
The Benefits and Disadvantages of Freddie Mac Small Balance Loans: Advantages of the Freddie Mac SBL Program
Advantages of the Freddie Mac Small Balance Loan program include:
- Flexible loan sizes, starting at just $750,000 and going up to $7.5 million
- Low interest rates, starting from just 4.51%
- High leverage, up to 80% LTV
- Generous DSCR minimums, as low as 1.20x
- 30-year amortizations, keeping payments low for borrowers
- Partial and full-term interest-only loans offered
- Cash-out refinancing offered for eligible borrowers
- Multiple fixed rate term options (with up to 10-year terms) and hybrid ARM options (with 20-year terms)
- Soft step-down prepayment penalties allowed
- 60-120 day rate commitments offered
- Loans are fully assumable with 1% fee and Freddie Mac approval
- Financing is non-recourse (with individual exceptions for certain loans)
What are the requirements for the Freddie Mac SBL Program?
The Freddie Mac SBL Program requires servicers and sellers to meet a specific set of guidelines. These include collateral, undergoing a rigorous assessment, B-piece purchase, loss sharing, repurchasing of delinquent SBLs and origination of at least $50 million per quarter. Qualifying projects include multifamily properties with loans that that range from $1 million to $7.5 million. The key benefits and features of the Freddie Mac SBL program are outlined in the sources. The required DSCR for the Freddie Mac SBL Program is not specified, but you can use a DSCR Calculator to calculate it.
Does the Freddie Mac SBL Program offer rate locks?
Yes, the Freddie Mac SBL Program offers rate locks. According to Apartment Loans, the program offers 60-120 day rate locks. Borrowers are typically required to pay a 1% loan deposit at rate lock, which will be fully refunded after closing.