Loan Programs > Commercial Real Estate > Freddie Mac SBL
Freddie Mac Small balance loans (SBL)
Get the attention and follow-through you deserve for your multifamily deal, from a top agency lender who specializes in small balance.
Overview
With 10 years of small balance multifamily lending, Ready Capital provides a one-stop solution for $1 million to $7.5 million small balance loans (or larger portfolios comprised of small balance loans).
Your one-stop solution for small balance multifamily financing
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One of the top nationwide Freddie Mac SBL Optigo® lenders.
- Complementary small balance multifamily Bridge program, featuring no exit fee when refinanced under Ready Capital’s SBL program.
- Dedicated staff with a keen focus on small balance multifamily.
- Fast and reliable review of loan opportunities by experienced front-end “speed underwriting” team (same-day LOI execution in some instances).
- Loans consistently closed per the original terms and by a proven back-end underwriting team that has deep program knowledge and relationships.
- Simplicity, transparency, and reliability with industry-leading sizing and pricing tools.
- Submissions by brokers are welcomed with attractive economic incentives available.
Freddie Mac SBL for Multifamily Properties
Ready Capital is an approved, top Freddie Mac Optigo® lender. If agency lending is the best match for your multifamily acquisition, refinance, or recapitalization, we are your single source. Our Small Balance Loan (SBL) program operates nationwide, with fast answers, superior process transparency, and results you can count on.
Loan Terms
| Loan Purpose | Acquisition, refinance, recapitalization |
| Loan Amount |
$1 million to $7.5 million |
| Loan Term |
5, 7, 10 years 5/7/10 Hybrids at loan term of 10/10/20 |
| Rate Type |
Fixed or Fixed-to-Floating (Hybrid) Fixed Rate held at LOI execution |
| Closing Timeline | 45 to 60 business days |
| Fees | None (par to lender) |
| In-Place DSCR/Debt Yield |
1.20x Top Market 1.25x Standard Market 1.30x Small Market 1.40x Very Small Market |
| Amortization | 30 years; partial & full-term interest only (IO) available |
| Future Advances | n/a |
| Earnouts | n/a |
| Escrow | RE Taxes if LTV > 65%; Reserves if >50 units |
| Recourse | Non-recourse with standard carve-outs |
| Prepayment | Multiple stepdown options; yield maintenance |
| Extensions | n/a |
| Legal Fees | Generally $7,500 or less per loan |
Borrower peace of mind
Concerned about interest rate volatility and hefty deposits and costs to early rate-lock? If so, then Freddie Mac SBL may be the answer. For no additional cost on the first day of the process (at time of executed LOI), the Freddie Mac SBL rate is automatically locked and held until the closing date.
SMALL BALANCE MULTIFAMILY FINANCING - CASE STUDIES
Your one-stop shop for small balance multifamily Bridge and Freddie Mac SBL
Small balance Bridge acquisition loan & Freddie Mac SBL refinance loan
19-unit apartment complex
Hollywood, FL
- $1.8MM / 71% LTC Bridge acquisition loan
- Renovation of a coastal 1960s vintage complex
- $2.264MM cash-out Freddie Mac refinance loan 1.9 years later upon business plan execution
Small balance Bridge acquisition loan & Freddie Mac SBL refinance loan
25-unit apartment building
Portland, OR
- $2.6MM / 66% LTC bridge acquisition loan
- Light reposition of well-located, under-managed asset
- 35-day quick close Bridge loan to take advantage of opportunistic acquisition
- $2.68MM cash-out Freddie Mac SBL refinance loan upon minimal seasoning
Small balance Bridge acquisition loan & Freddie Mac SBL refinance loan
58-unit apartment complex
Albuquerque, NM
- $4.05MM / 75% LTC Bridge acquisition loan
- Significant reposition of well-located, mid-century complex
- $4.31MM cash-out Freddie Mac SBL refinance loan 1.3 years later, upon business plan execution
Nationwide lending at its best
Our team of professionals have deep industry expertise, offering brokers and sponsors commercial real estate know-how and confidence through all markets and credit cycles.