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Non-Recourse, Fixed and Adjustable-Rate Apartment Financing

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What are the Occupancy Requirements for the Freddie Mac SBL Program?

June 6, 2019 By Janover Ventures

Freddie Mac Small Balance Loan

Like most other types of multifamily financing, Freddie Mac Small Balance Loans have minimum occupancy requirements that must be met in order for a borrower to be approved. For most properties, this is set at 90% physical occupancy for 90 days before the loan is underwritten.

However, 85% physical occupancy is allowed under certain circumstances, including:

  • The property has less than 30 units
  • The property is located in a Top Market, and is either a new property or has been renovated recently
  • For acquisitions, the property must:
    • Have a general history of stable occupancy
    • Be relatively crime free (on a historical basis)
    • Have appraised rents/occupancy higher than current rents/occupancy (i.e. room to improve profitability)
    • Have an owner/property manager acquiring/managing the property with more experience than the current owner/management

Filed Under: Freddie Mac SBL, Freddie Small Balance Loans, Frequently Asked Questions Tagged With: Freddie Mac Apartment Loans, Freddie Mac Multifamily, Freddie Mac Multifamily Loans, Freddie Mac Optigo, Freddie Mac SBL, Freddie Mac SBL Occupancy Requirements, Freddie Mac Small Balance Loans

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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