Additional Requirements for Small Balance Loans Over $6 Million
While the Freddie Mac SBL program permits loan sizes between $750,000 and $7.5 million, there are additional requirements for the smallest loans ($750,000 to $1 million) and the largest ($6 million to $7.5 million). Specifically, SBL loans above $6 million are generally only permitted in Top & Standard Markets. Plus, they can have no more than 100 units, and will require a borrower to order additional third-party reports, including a survey report and a zoning report. Finally, loans of more than $6 million also require a minimum DSCR of 1.25x, and require that borrowers form a Single Asset Entity (SAE).
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