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Freddie Mac Small Balance Loans

Non-Recourse, Fixed and Adjustable-Rate Apartment Financing

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Underwriting

June 6, 2019 By Janover Ventures

Underwriting in Relation to the Freddie Mac SBL Program

During the underwriting process, a lender decides whether offering a loan to a borrower is a suitable risk, based on their estimated ability to repay. When examining a commercial loan application, lenders generally look at credit, capacity, and collateral– often referred to as the “three C’s” of underwriting.

In terms of credit, borrowers for the Optigo Small Balance Loan program will usually need to have a FICO credit score of at least 650. Capacity, which is defined by DSCR, varies between 1.20x (for amortizing loans in Top Markets) to 1.50x (for full-term interest-only loans in Small Markets). Since Small Balance Loans are non-recourse, the property itself is generally considered to be sufficient collateral for the loan.

Filed Under: Freddie Mac Multifamily Loans, Freddie Mac SBL, Glossary Tagged With: Freddie Mac Apartment Loans, Freddie Mac Multifamily, Freddie Mac Multifamily Loans, Freddie Mac Optigo, Freddie Mac SBL, Freddie Mac Small Balance Loans

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Multifamily.Loans, Inc. is a Janover Ventures company. Please visit some of our family of sites at: Multifamily.loans, Commercial Real Estate Loans, CMBS.loans, SBA7a.loans, Home.loans, HUD.loans, HUD 232, HUD 223f, HUD 223a7, SBA Express Loans, SBA 504 Loans, and OpportunityZones.Help.

 

 

 


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