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Is the Freddie Mac SBL Program Available for Affordable Properties?

June 5, 2019 By Janover Ventures

Affordable Properties and the Freddie Mac SBL Program

Some affordable properties are eligible for Freddie Mac Small Balance Loans, while others are not. Affordable properties with non-profit borrowers, as well as early and mid-stage Low-Income Housing Tax Credit (LIHTC) deals are not permitted, however, rent-controlled properties, and properties with market-rate Section 8 vouchers are eligible. Below, we have provided a full list of affordable property types that are eligible and ineligible for the Optigo Small Balance Loan program.

SBL-Eligible Property Types

  • Properties with income/rent restrictions occurring as a result of local laws/regulations, and not actually listed on the property title (ex. rent control)
  • Properties with less than half of leases guaranteed by a legitimate non-profit with a minimum of 36 months of experience in low-income housing
  • Properties with tax abatements (no rent or income restrictions may be on property title)
  • Properties with market-level Section 8 tenant vouchers

SBL-Ineligible Property Types

  • All properties owned by non-profit borrowers
  • Housing Assistance Payment (HAP) contract properties
  • Properties involving rental/income restrictions or a regulatory agreement on the property’s title
  • LIHTC deals (both 4% or 9%) with a Land Use Regulatory Agreement (LURA) currently in place (generally including properties in their extended use period)

Filed Under: Affordable Housing Finance, Freddie Mac SBL, Frequently Asked Questions Tagged With: Affordable Housing Finance, Freddie Mac Optigo, Freddie Mac SBL, Freddie Mac Small Balance Loans, LIHTC, Low Income Housing Tax Credits

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Janover Ventures, LLC.
7601 N Federal Hwy. Ste B140
Boca Raton Florida 33487

Call: (800) 567-9631
Email: hello@multifamily.loans

 

Information

Loan Facts

Terms, Qualifications, and Guidelines

Term Sheet

Interest Rates

Portfolio Loans

 

Knowledge Base

Frequently Asked Questions

Glossary

Application

Application Process

Third Party Reports

Appraisal Process

Environmental Assessments

Property Condition Reports