How DSCR (Debt Service Coverage Ratio) Affects the Loan Amount

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With valuations at all time highs, many properties aren’t able to support a lender’s minimum debt service coverage requirement at the maximum loan-to-value (LTV). When a property’s debt service coverage ratio (DSCR) is below the minimum at a lender’s maximum LTV the loan amount must be reduced to maintain the minimum DSCR. When this happens,…

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Fannie Mae and Freddie Mac Multifamily Sponsorship Eligibility

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A question we get often at CREFCOA is related to Fannie Mae and Freddie Mac sponsorship eligibility requirements. Under the Fannie Mae and Freddie Mac multifamily lending platforms the agencies require sponsors to meet specific eligibility requirements. The four main eligibility requirements are: 1. 5+ unit multifamily experience 2. Net worth 3. Liquidity 4. Credit…

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Freddie Mac SBL Interest Rate Change – Effective July 2, 2021

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During a period of sharply falling Treasury yields, Freddie Mac SBL interest rates just got a bump higher. While Freddie Mac’s SBL interest rates aren’t directly tied to Treasury yields, they do tend to move in step with Treasuries so this was a bit of a surprise. Interest rate pricing updates are effective for all…

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