Freddie Mac SBL Program Interest Only Options for Multifamily Properties
Freddie Mac Small Balance Apartment Loans (SBL) provide partial and full fixed term interest only options for qualified properties. The interest only term depends on:
- Property location (Freddie Mac Market Tiers)
- Fixed term (5, 7 or 10-year fixed term options)
In general, loans with an LTV below 60%-65% and a DSCR above 1.35-1.50 are eligible for interest only payments during the entire fixed term of the loan. Loans where the DSCR or LTV are outside of these parameters are eligible for partial term interest only payments, or ineligible based on Market and length of fixed term.