Freddie Mac has a new commercial loan program for owners nationwide of small rental properties.
"With this country's growing gap between affordable housing demand and supply, it's critical to provide financing for smaller loans and properties - especially since this market segment disproportionately serves lower income renters," said David Brickman, Freddie Mac Multifamily Executive Vice President.
If you're an owner of a smaller apartment building, chances are you get financing from your local lender, and you probably don’t have access to the secondary market.
But now, with our Small Balance Loan offering, we'll purchase and securitize multifamily loans of $1 to $5 million for smaller apartment properties — an important source of rental housing for working families. We expect the average loan to be about $2.5 million.
About 29% of the multifamily loan market is made up of smaller loans with an average loan size of $1.2 million, based on 2012 data from Trepp.
Hear from our Small Balance Loans expert for more details.
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