Cash Out Refinancing and Freddie Mac Small Balance Loans
The Freddie Mac Optigo Small Balance Loan Program offers cash-out refinances, though they are typically approved on a case-by-case basis. Overall, borrowers are more likely to be approved for cash out if they present a low risk for Freddie Mac. The most eligible borrowers for cash-out refinancing deals include those who are financing higher-quality properties in Top and Standard Markets, with DSCRs somewhat above the minimum requirements (1.20x – 1.25x for those markets).