Freddie Mac’s Small Balance Loans to Grow Workforce Housing Market
Freddie Mac launched its new Small Balance Loan (SBL) program in an effort to facilitate access to affordable capital for owners of small apartment buildings with five or more units. The SBL features a streamlined process and less paperwork than Freddie Mac’s traditional, higher balance programs. The SBL program offers six different non-recourse financing solutions across multiple fixed-rate and hybrid (fixed to float) products with 30-year amortization and up to 80% loan to value in certain markets. We have seen a definite surge in popularity with the SBL program,” says Matthew Brown, principal at Brown Multifamily Advisors. “Buyers of workforce housing properties are utilizing this financing tool to successfully acquire and implement improvement plans that reposition and sustain assets for long-term holds or short-term dispositions. Contact Brown Multifamily Advisors to learn more about workforce housing investment opportunities and financing multifamil...