Top Markets for the Freddie Mac SBL Loan Program
In the context of the Freddie Mac Small Balance Loan program, cities across the U.S. are divided into Top Markets, Standard Markets, Small Markets, and Very Small Markets. Top Markets are the largest and most desirable, and hence the least risky for lenders and Freddie Mac. Small and Very Small Markets are the riskiest, and therefore loans for these properties require higher Debt Service Coverage Ratios.
Properties in Top Markets must have DSCR of at least 1.20x, and include Los Angeles, the NYC/New Jersey Metro Area, Chicago, Washington DC, San Francisco, Boston, San Diego, Miami, Sacramento, Orange County, Portland, San Jose,, Minneapolis, Dallas, Seattle, Denver, and Oakland.