Freddie Mac and Fannie Mae Loan
We specialize in providing Freddie Mac and Fannie Mae loan for investors looking to purchase or refinance their apartments. Unlike the banks offering 15-year or 20-year amortization, we offer up to 30-year amortization. Fannie Mae and Freddie Mac’s small balance apartment rates can start in the 4’s with a 30-year amortization.Â
What is the minimum amount for Freddie Mac and Fannie Mae Loan?
Even though the agency apartment loan guidelines allow for a minimum loan amount of $250,000.00 dollars most lenders will not lend below $1,000,000.00 dollars. Since the minimum loan amount is $1,000,000.00 dollars, the purchase price or the appraised value should be around $1,300,000.00 dollars to $1,400,000.00 dollars or more depending on the loan to value.
What determines the rate and loan to value for Freddie Mac and Fannie Mae Loan?
The rate and the loan to value is based on where the property is located, the breakdown of the units, affordability, debt service coverage ratio, loan to value, if the loan is a fixed balloon or and hybrid rate product (an example of a hybrid is like an adjustable-rate in the residential financing), if the prepayment penalty is yield maintenance or a step down, etc.
What is the benefits of financing your apartment under the Freddie Mac and Fannie Mae program versus a bank loan?
| Type of Loan | Bank Loan | Fannie Mae | Freddie Mac SBL |
| Non-Recourse | No | Yes | Yes |
| Loan Term | 3-5 years | 5,7,10, 12 | 5,7,10 years |
| Interest Only | 1-2 years | 1-5 years | 1-3 years |
| Amortization | 20 | 30 | 30 |
| Max LTV (Acquisition/Refinance) | 75%/75% | 80%/75% | 80%/75% |
| Property Occupancy | Flexible | 90% for past 90 days | 90% for past 90 days |
| Rehab Budget | Included in Loan | Included in Loan – Limited Rehab | Not included in loan |
| Prepayment Penalty | Limited to none | Yield Maintenance | Step Down |
| Experience | New Investor | Experienced 12 months ownership | Experienced/New Investor |
| FAQ | |||
| What 3rd Pary reports needed | Appraisal starts at $2,500 up to 30 days | ||
| Engineering starts at $3,000 up to 30 days | |||
| Survey starts at $2,500 up to 30 days | |||
| Rate Lock | Bank locks rate after 10 days of committee approval | ||
| Fannie/Freddie – received 3rd party reports, all due diligence and after final approval | |||
| How Long to Close | Bank 45 days | ||
| Fannie/Freddie 45-60 days | |||
| Closing Cost | Under $10MM 3% of loan | ||
| Over $10MM 2% of loan |
—
Wishing You the Best,
Karen Schimpf
| e: KarenSchimpf at gmail.com s: https://www.linkedin.com/in/karenschimpf/ w: www.applycommercialloans.com/ o: 512-358-1511c: https://calendly.com/karenschimpf |
P.S. Who do you know needs a commercial loan? I specialize finding commercial loan solutions. Already been denied? No problem, 80% of people that have previously been denied have received funding that they had no idea they could get. I BRING COMMERCIAL MONEY FROM AROUND THE COUNTRY TO LOCAL MARKETPLACES ENSURING THE MOST LIKELIHOOD OF CLOSING. The key is placing the borrower with the lender that most suits that borrower’s strengths.Give me a call today so you can get your loan closed at O:512-358-1511
.Â