Agency Apartment Loans

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Agency Apartment Loan Terms

We specialize in providing Freddie Mac Multifamily Small Balance Loans for investors looking to purchase or refinance their apartment. Unlike the banks offering 15-year or 20-year amortization, we offer up to 30-year amortization. Fannie Mae and Freddie Mac small balance apartment rates can start in the 4’s with a 30-year amortization. 

What is the minimum amount for Freddie Mac Multifamily Small Balance Loans?

Even though the agency apartment loans 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. 

Is there an Alternative for Agency Apartment Loans for Loans Below $1,000,0000?

Yes, if your loan amount is below $1,000,000.00, we have alternative correspondent lenders for mobile home park loans that can go as low as $250,000.00 dollars.

What determines the rate and loan to value?

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 hybrid is like an adjustable rate in the residential financing), if the prepayment penalty is a yield maintenance or a step down etc.  

What is the benefits of financing your apartment under the agency apartment loans program versus a alternative loan?

Type of Loan	Alternative Loan	Fannie Mae	Freddie Mac SBL
Non-Recourse	No	Yes	Yes
Loan Term	5,7,10 and even 30 year fix	5,7,10, 12	5,7,10 years
Interest Only	No	1-5 years	1-3 years
Amortization	30	30	30
Max LTV  (Acquistion/Refinance)	80%/75%	80%/75%	80%/75%
Property Occupancy	80% for past 90 day	90% for past 90 days	90% for past 90 days
Rehab Budget	No	Included in Loan – Limited Rehab	Not included in loan
Prepayment Penalty	5 years but step down and 3-year available	Yield Maintenance	Step Down
Experience	New Investor	Experienced 12 months ownership	Experienced/New Investor
Stated Income and Low Doc	Yes	No	No
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