FREDDIE MAC

As a GSE, Freddie Mac’s presence in the market is critical. They provide capital to the housing market. While Freddie Mac is better suitable in large, higher cost markets, Fannie Mae is more effective in secondary and tertiary markets. The Olivera Experience has relationship with lenders nationwide that have authority on behalf of Freddie Mac to underwrite multifamily small balance (SBL) loans. Formerly known as the “SBL”s, currently known as Optigo, Freddie Mac is one of the most popular multifamily finance option today.  Our team of experienced professionals work closely with our lenders to provide certainty of funding performance and execution.

Optigo’s Highlights

Freddie Mac Multifamily Small Balance Loan Program “SBL”, is a dynamic, streamlined platform.

“SBL” offers the following general terms:

  • Loan Size: Up to $7.5 million nationwide
  • Purpose: Loan can be used for acquisition or refinance
  • Unit Requirements: 5 units minimum up to 100 units. Loan amounts of smaller than $6 million, bears no unit limitations
  • LTVs vary depending on markets:
    • Top Markets: 80% maximum LTV allowance for purchases and refinances
    • Standard Markets: 80% maximum LTV allowance for purchases and refinances
    • Small Markets: 75% maximum LTV allowance for purchases, 70% for refinances
    • Very Small Markets: 75% maximum LTV allowance for purchases, 70% for refinances
  • Documentation: No tax return requirement
  • Rates: varies depending on the Federal Home Loan Mortgage Corporation
  • Interest Options:
    • 20-year hybrid ARM with a 5, 7, or 10-year fixed-rate loan period
    • 5, 7, or 10-year fixed-rate loan
  • DSCR (Date Service Coverage Ratio) vary depending on markets:
    • Top Markets*: Minimum 1.20
    • Standard Markets*: Minimum 1.25
    • Small Markets*: Minimum 1.30
    • Very Small Markets*: Minimum 1.40

      • *Some DSCR markets may qualify for 1%

  • Assumable: Assumable. Lender must approve with a 1% fee
  • Cash Out: Cash out refinances available
  • Prepayment: Step down, yield maintenance, and soft step down options available

In addition to the Freddie Mac’s conventional smaller balance loans via Optigo, Freddie Mac offers variety of different options:

  • Fixed rate loan
  • Float-to-Fixed Loan
  • Floating-Rate Loan
  • Structured Pool Transaction- Loans over $400 Million
  • Green Advantage
  • Lease up Loan
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