The Knowledge Base

T-12 Audit & Lender-Ready Financials for Multifamily Owners

The Bhumi Knowledge Base is the operational manual for standardized commercial underwriting. Below, we break down the core components of financial reconstruction—from T-12 operating statements and NOI calculation to Freddie Mac and Fannie Mae documentation requirements.

No jargon. No fluff. Just the information you need to get your deal funded.

Lender Requirements

Freddie Mac Small Balance Loan Requirements

The documentation standards for Freddie Mac SBL. What they require, what they reject, and how to pass underwriting.

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Fannie Mae Small Loans: Requirements and Documentation

The agency alternative to Freddie Mac for $750K-$6M multifamily properties. Requirements, process, and when to choose Fannie.

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DSCR Explained: The Ratio That Determines Your Loan

Debt Service Coverage Ratio is the single most important metric in commercial real estate lending.

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The Underwriting Checklist Decoded

47 line items. 4 responsible parties. Here's how to read the document that determines whether your deal closes.

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Freddie Mac Forms 1112, 1114, 1115, 1116 Explained

Four forms. One purpose: prove you're a qualified borrower. Here's what each one asks and why.

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Section 8 Income Documentation for Lenders

How to document Housing Choice Voucher income so lenders count every dollar. HAP contracts and verification.

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Freddie Mac Insurance Requirements: What Your Broker Doesn't Know

Agency loans have different rules. Here's what actually gets required—and what gets deals rejected.

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SBL Eligibility: The Gatekeepers

The structural tests that kill deals before underwriting begins. Property and sponsor requirements you must pass first.

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SBL Underwriting: The Math of Risk

DSCR, LTV, and Debt Yield—the three constraints that size your loan. How clean data translates to higher proceeds.

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SBL Documentation: The Source of Truth

The paper trail that proves your numbers. Financial, occupancy, entity, and property documentation requirements.

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SBL Physical Due Diligence: The Reality Check

PCA, Phase I ESA, and Seismic reports—the third-party assessments that can trigger escrows or kill deals.

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SBL Lifecycle: From Origination to Exit

What happens after closing—servicing requirements, annual compliance, prepayment, and how to exit without penalties.

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Freddie Mac SBL vs. Fannie Mae Small Loans: The Agency Showdown

Two programs, same borrower profile—but different DSCR, prepayment, and market tier rules that determine which one maximizes your proceeds.

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The Tenant Estoppel: When Your Tenants Testify Against You

The only document that overrules your Rent Roll. Here's how to prevent a "side deal" from killing your closing.

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Global Cash Flow: When Your Sponsor's Balance Sheet is the Deal

Form 1115, the REO schedule, and the liquidity test that determine whether your personal finances help or hurt your loan.

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The Rate Lock: How 72 Hours Can Cost You $50,000

Index + Spread, breakage fees, and the float period trap. What happens when your rate lock expires before closing.

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The Appraisal: When Cap Rates Kill Your Proceeds

Form 1025, Income Approach math, and the Reconsideration of Value process when your deal comes in low.

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The Loan Assumption: Selling With the Debt Attached

When your low-rate loan is worth more than your building. The full assumption process, timeline, and fees.

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Cash-In Refinance: When You Write a Check to Close

The math of LTV cures, the pain of negative proceeds, and how to plan when markets turn against you.

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Rent Comparability: When Freddie Adjusts Your Rents Down

Form 1103A, market rent analysis, and why your $1,200 rent becomes $1,050 in underwriting.

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The Supplemental Loan: Adding Debt Without Refinancing

When your low rate is worth keeping. How to extract equity while preserving your existing Freddie Mac loan.

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The Borrower Interview: What Freddie Asks (And Why)

The Sponsor Meeting, Form 1115 deep dive, and how to explain your way through credit events without killing your deal.

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Bridge-to-Perm: The Two-Bite Strategy

When you can't qualify for agency today. How to structure bridge financing for a clean Freddie Mac takeout.

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The Application Deposit Trap: When "Good Faith" Isn't Refundable

Why borrowers lose $25,000 before the loan even closes—and how to protect your upfront cash.

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The Commitment Letter: Reading Between the Lines

The binding document that separates term sheet promises from funded loans—and the conditions that can still kill your deal.

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Subordinate Financing: The Mezzanine Minefield

Why Freddie Mac treats second liens like deal-killing landmines—and the narrow paths around the prohibition.

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Credit Exception: When the Numbers Don't Work

How to request—and get approved for—deviations from Freddie Mac's standard underwriting criteria.

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Defeasance: Escaping Your Fixed-Rate Lock

How to prepay a Freddie Mac loan by substituting Treasury securities—and when the math actually works.

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Trigger Events: When Your Loan Changes Mid-Stream

The actions that require lender consent—and what happens when you forget to ask.

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The Servicing Relationship: Your Post-Closing Reality

What happens after the loan funds—inspections, escrows, reporting, and how to keep your servicer from becoming your adversary.

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Title Insurance: The Final 48 Hours Before Closing

Pro Forma policies, Schedule B exceptions, ALTA endorsements—the title requirements that delay closings when you're not ready.

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Lender Legal Traps: The "Non-Recourse" Myth

Bad Boy Carveouts, Springing Recourse, and the fine print that puts your personal assets at risk.

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