May 11, 2022 – Freddie Mac Reduces Interest Only Interest Rate Addition and Increases Interest Rate Discount for Rent Affordability – Big and Positive Changes

Freddie MAC SBL Apartment Loans

Effective May 11, 2022, Freddie Mac has made the following changes to its Small Balance Multifamily Loan (SBL) program. Interest Only Payments – Freddie Mac has reduced the addition to the base interest rate from 4 bps to 1 bps for each year of interest only. This is a positive move for Freddie Mac borrowers…

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


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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Freddie MAC SBL Turn Time Currently at 17 Business Days

Freddie SBL Turn

Under the Freddie Mac SBL program (small apartment loan program for loan sizes between $1M-$7M) it’s currently taking Freddie Mac 17 business days to turn around a draft commitment letter (DCL). Freddie Mac rolled out the SBL program in October of 2014. At the time, Freddie was able to turn around a DCL in 10…

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