The maximum loan amount for the Freddie Mac SBL Program is $7.5 million. Loans of more than $6 million require additional requirements, including a minimum DSCR of 1.25x and the formation of a Single Asset Entity (SAE).

Source: www.multifamily.loans/apartment-finance-blog/freddie-mac-sbl-program

Source: apartment.loans/posts/freddie-mac-small-balance-loans-between-6-million-to-7-5-million-what-you-need-to-know

The minimum loan amount for the Freddie Mac SBL Program is $2 million, regardless of the number of units.

For loans under $1 million, additional requirements include:

• Loans must be in a Top Market or Standard Market
• Eligible borrowers include:
  • Previous Freddie Mac Multifamily borrowers
  • Borrowers taking out multiple loans simultaneously
  • Borrowers who will are likely to engage Freddie Mac for 2+ additional loans within the next 12 months
  • Borrowers with significant multifamily experience in the area (2+ years local multifamily experience and 2+ multifamily properties owned)
  • Loans that were initially approved for $1 million+ but were later constrained by property NOI or other factors
• Properties must underwrite a vacancy of at least 5% and an expense ratio of at least 30%
• 10-15 bps will be added loans in Top Markets, while 15-20 bps will be added to loans in Standard Markets
• Cash-out refinances for these loans are typically subject to stricter leverage requirements (LTV/DSCR)
• Seller/servicers may not market Small Balance Loans less than $1 million
• Freddie Mac generally requires 3 additional business days for commitments and inspections

For loans over $6 million, additional requirements include:

• Loans must be in a Top & Standard Markets
• No more than 100 units
• Borrowers must order additional third-party reports, including a survey report and a zoning report
• Minimum DSCR of 1.25x
• Borrowers must form a Single Asset Entity (SAE)

The maximum loan-to-value (LTV) ratio for the Freddie Mac Small Balance Loan (SBL) program is 80% for purchases and refinances in Top and Standard Markets. For Small and Very Small Markets, the maximum LTV is 75% for purchases and 70% for refinances. For full-term interest-only (I/O) financing, the maximum LTV is 65% in Standard Markets and 60% in Small and Very Small Markets.

Source: https://apartment.loans/posts/what-is-the-required-ltv-ratio-for-the-freddie-mac-sbl-program

Source: https://www.multifamily.loans/apartment-finance-blog/freddie-mac-sbl-program

Source: https://apartment.loans/freddie-mac

The minimum loan-to-value (LTV) ratio for the Freddie Mac SBL Program depends on the market size of the property. For Top and Standard Markets, the LTV is 80% for purchases and refinances. For Small and Very Small Markets, the LTV is 75% for purchases and 70% for refinances, and 60% for full-term interest-only (I/O) financing.

Source: apartment.loans/posts/what-is-the-required-ltv-ratio-for-the-freddie-mac-sbl-program

The eligibility requirements for the Freddie Mac SBL Program include:

• Collateral
• Rigorous assessment
• B-piece purchase
• Loss sharing
• Repurchasing of delinquent SBLs
• Origination of at least $50 million per quarter

For more information, please refer to the Freddie Mac SBL Program Guidelines.