Small Balance Freddie Mac Loans range from $1 to $5 million and are used for acquisition or refinance of up to 80% Loan-to-Value. The programs are available as 20-year hybrid ARM’s with initial 5, 7, or 10 years fixed, or as 5, 7, and 10 years fixed terms to balloon. Both programs are available with partial and full-term interest-only. This is a non-recourse loan meaning the borrower is not personally liable and therefore tax returns are not required to qualify. The loan is amortized over 30 years, assumable and the asset must be 90% occupied for at least 90 days at application. Cash-flow is analyzed by dividing the net operating income by the proposed payment. There are minimum provisions for net worth, liquidity and real estate management experience needed to qualify.
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