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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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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