Freddie Mac Small Balance Portfolio Loans
In addition to offering single Optigo Small Balance Loans to multifamily borrowers, Freddie Mac also offers SBL portfolio loans, which issue financing for multiple properties simultaneously. SBL portfolio loans are often the best way for larger investors and institutions to get the best pricing and terms on a group of small multifamily properties. To apply, borrowers must be seeking a minimum of two loans for properties in Top and Standard Markets, however, Freddie Mac may make exceptions on a case-by-case basis. Benefits of portfolio loans include:
- Proceeds/credit can be structured to weighted averages: This means that properties with higher LTVs and lower DSCRs than generally required may be eligible for Small Balance Loans, as long as the weighted average of the portfolio equals or exceeds the required metrics.
- Best-in-class pricing: For eligible borrowers, SBL portfolio loans may have better interest rates than typical Small Balance Loans.
- Application fee savings: Freddie Mac has waived all application fees for borrowers with properties in Standard Markets.
- Increased efficiency: Freddie Mac has reduced the number of forms per loan, saving borrowers substantial time and reducing potential hassles.
- Personalized service: Borrowers will be assigned a dedicated team to answer questions, address concerns, and assist whenever needed.
In addition to their benefits, Freddie Mac SBL Portfolio Loans also have some additional requirements, including:
- A Good Faith Deposit (GFD), of either 1% of the entire aggregate loan amount, or $50,000, whichever is larger. This is refundable upon closing.
- Filling out forms including a Portfolio Pricing Request Form and Collateral Stratification Form and submitting them to the applicable Regional Mailbox (instructions may have changed slightly with the new Optigo program).