Multifamily Small Balance Loan Rates – Dec, 8 2015Paul Winterowd
The Freddie Mac Small Balance Loan Program for Multifamily properties is gaining in popularity every day. In many ways this loan program is ideal for multifamily properties in the 20 to 75 unit range. The maximum amount that can be borrowed is $5 million while $1 million is the minimum. This loan can be closed and funded in under 60 days if the borrower is responsive.
Another compelling reason to consider this type of loan is the costs to the borrower are a fraction of traditional Freddie and Fannie multifamily loans. These mortgages are also non-recourse which really makes them an attractive alternative to bank financing. A multifamily Freddie Mac small balance loan will typically allow the borrower the maximum leverage, or LTV, on the property.
By in large the rates we offer for this program have stayed level over the last several weeks. We have seen a very minute move upwards however. This movement is likely a factor of the pending Federal Reserve interest rate hike most experts anticipate next week. Now is a great time to refinance ahead of a plausible rising rate environment forthcoming.