Assumability in Relation to the Freddie Mac SBL Program
If a commercial or multifamily loan is assumable, it can be transferred to a new borrower, allowing the current owner to avoid prepayment penalties. It can also make the property easier to sell, as the new borrower will not have to pay most of the costs of taking out a new loan. However, if the loan is already several years into its term, assuming a loan may require the new borrower to make a sizable down payment in order to acquire the property, which they may or may not be willing to do.
In regards to the Freddie Mac SBL program, all Optigo Small Balance Loans are fully assumable with lender approval and a 1% fee.