Properties in Standard Markets must have a DSCR of 1.25x, and include Orlando, San Antonio, Houston, Phoenix, Atlanta, Las Vegas, Philadelphia, Cleveland, Jacksonville, Albany, Austin, Albuquerque, Pittsburgh, Baltimore, New Orleans, Bakersfield, Buffalo, Salt Lake City, Providence, St. Louis, Charlotte, Tampa, Nashville, Indianapolis, Detroit, Cincinnati, Norfolk, Milwaukee, Richmond, Birmingham, Dayton, Hartford, Riverside, Tucson, Raleigh, Rochester, Columbus, Memphis, Omaha, Richmond, Tulsa, Knoxville, Fresno, Louisville, Kansas City, Honolulu, and Oklahoma City.

Source: https://apartment.loans/posts/standard-markets

The eligibility requirements for Freddie Mac Small Balance Loans vary depending on the size of the loan. For loans between $750,000 and $1 million, the loan must be in a Top Market or Standard Market, and the borrower must meet additional requirements such as having previous Freddie Mac Multifamily experience, taking out multiple loans simultaneously, or having significant multifamily experience in the area. For loans between $6 million and $7.5 million, the loan must be in a Top or Standard Market, have no more than 100 units, and require a borrower to order additional third-party reports, including a survey report and a zoning report. Additionally, loans of more than $6 million also require a minimum DSCR of 1.25x, and require that borrowers form a Single Asset Entity (SAE).

In terms of credit, borrowers for the Optigo Small Balance Loan program will usually need to have a FICO credit score of at least 650. Capacity, which is defined by DSCR, varies between 1.20x (for amortizing loans in Top Markets) to 1.50x (for full-term interest-only loans in Small Markets). Since Small Balance Loans are non-recourse, the property itself is generally considered to be sufficient collateral for the loan.

The advantages of Freddie Mac Small Balance Loans include:

• Up to 80% LTV allowance
• Streamlined application process
• Loans are non-recourse
• Interest-only options
• 30-year amortizations
• Variety of hybrid ARM and fixed-rate options available
• Loans are assumable with approval and 1% fee
• 60-120 day rate locks typically available
• 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)

The maximum loan amount for Freddie Mac Small Balance Loans is $7.5 million. Source 1 and Source 2.

Freddie Mac Small Balance Loan Interest Rates range from 4.08% to 5.16%. Rates vary between Top, Standard, Small, and Very Small Markets. In addition, pricing is further broken down by region, as Freddie Mac has divided the U.S. into 5 distinct regions for the purposes of SBL pricing.

Source: https://apartment.loans/posts/interest-rates