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Freddie Mac SBL - Linked Property Program

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The Freddie Mac Small Hybrid ARM Apartment Loan program offers the most competitive rates and terms in the multifamily small loan space. Each loan is custom priced. Request a custom quote today.
  • Competitive low rates
  • Non-recourse
  • No yield maintenance
  • No replacement reserves
  • No balloon payment at the end of the fixed term

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Best Program For You
Which Program is Best
Which one of our apartment loan programs is best for you? By providing some basic information about yourself, your property and what you are looking for in an apartment loan, we can help you decide which one of our programs is best for you.

Freddie Mac Small Apartment Loans - Linked Program

The Freddie Mac Small Balance Apartment Loan (SBL) Program provides financing for non-contiguous properties through its Linked Property Program.

Freddie Mac SBL Linked Properties Guidelines

Loan Size $2 million minimum loan size.
Eligible Properties Minimum of 5 units for each property and a 10 unit minimum for total units.
Location No individual property is more than 3 miles walking distance from at least one of the other subject properties.
Property Characteristics Properties built within 10 years of each other with similar or comparable construction types. Comparable interior improvements and unit configuration. Rents for each unit type should be comparable.
Borrowing Structure All properties must be owned in or by a single asset entity.
Expense Ratio Should be within 5% for each of the subject properties
Operating Statements Income and expense statements and rent rolls must be provided on both an individual property basis and on a consolidated basis.
Ineligible Properties 1-4 unit residential properties that are non-contiguous. 1-4 unit properties that total more than 5 units and are contiguous may be eligible under the core SBL Program. Contact Crefcoa to learn more.
Markets Linked Program is only available in Top and Standard Markets. Properties may be eligible on an exception basis with strong mitigates in Small and Very Small Markets.
Fixed Terms 5 year fixed + 15 year ARM.
7 year fixed + 13 year ARM.
10 year fixed + 10 year ARM.
ARM Details Index: 6 month LIBOR.
Interest rate floor equal to start rate.
Lifetime cap set at 500 bps above the start rate.
1% periodic rate adjustments every 6 months.
Amortization 30 years.
Maximum LTV 70%-75%. LTV is 5% lower for Linked Properties than LTV requirements under the SBL Program.
Minimum DSCR 1.25-1.45 depending on Market Tier. DSCR is 5bps higher for Linked Properties than DSCR requirements under the SBL Program.
Interest Rate Adjustment +15bps above standard SBL pricing.
Underwriting Floor Rate No underwriting floor rate.
Minimum Occupancy 90%.
Interest Only Available - see SBL interest only options for detail.
Interest Accrual Actual/360.
Prepayment Penalty Yield maintenance of declining prepay options.

5 year fixed term: 5,4,3,2,1. Can be reduced with rate increase.
7 year fixed term: 5,5,4,4,3,2,1. Can be reduced with rate increase.
10 year fixed term: 5,5,4,4,3,3,2,2,1,1. Can be reduced with rate increase.
1% prepay during ARM term - can be waived if selling the property or refinance with a Freddie Mac.

Guarantee Non-recourse subject to standard carve-outs.
Assumable Yes, subject to lender approval.
Escrows Real estate tax escrow deferred for loans less than 65% LTV. Insurance escrow deferred.
Replacement Reserves Not required.
Subordinate Debt Not permitted.
Rate Lock At application.
Sponsor Requirements
  • 650 minimum credit score
  • Collective net worth of key principals must exceed loan amount
  • Minimum liquidity of nine months debt service
  • Local ownership no prior multifamily experience required
  • Absentee ownership requires two years comparable multifamily ownership experience
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What You Need to Know About the Freddie Mac SBL Linked Property Program

The Freddie Mac SBL Linked Property Program is a great option for borrowers with multiple properties, or purchasing multiple properties, and want one loan and not multiple loans. It's an easier and more cost effective underwriting process and simplifies the loan process. However, the loan documents don't permit individual releases.


Linked Property Program is available for both purchases and refinances. For purchases it is possible to combine properties from different sellers. Crefcoa has also successfully combined a refinance with a purchase under the Linked Program.

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