Freddie Mac Small Balance Loan Requirements
The documentation standards for Freddie Mac SBL. What they require, what they reject, and how to pass underwriting.
Each lender type has specific documentation standards and underwriting criteria. Know what they need before you apply.
Freddie Mac, Fannie Mae, banks, and private lenders all want the same thing: proof that your property can pay back the loan. But they verify it differently and require different documentation.
These articles cover the major lending programs, their specific requirements, and the metrics they use to make decisions. Understanding DSCR, documentation standards, and program-specific forms will accelerate your approval.
The documentation standards for Freddie Mac SBL. What they require, what they reject, and how to pass underwriting.
The agency alternative to Freddie Mac for $750K-$6M multifamily properties. Requirements, process, and when to choose Fannie.
Two programs, same borrower profile—but different DSCR, prepayment, and market tier rules that determine which one maximizes your proceeds.
The structural tests that kill deals before underwriting begins. Property and sponsor requirements you must pass first.
When you can't qualify for agency today. How to structure bridge financing for a clean Freddie Mac takeout.
Debt Service Coverage Ratio is the single most important metric in commercial real estate lending. How it's calculated and why it matters.
DSCR, LTV, and Debt Yield—the three constraints that size your loan. How clean data translates to higher proceeds.
Form 1115, the REO schedule, and the liquidity test that determine whether your personal finances help or hurt your loan.
Form 1103A, market rent analysis, and why your $1,200 rent becomes $1,050 in underwriting.
Form 1025, Income Approach math, and the Reconsideration of Value process when your deal comes in low.
How to request—and get approved for—deviations from Freddie Mac's standard underwriting criteria.
47 line items. 4 responsible parties. How to read the document that determines whether your deal closes.
The paper trail that proves your numbers. Financial, occupancy, entity, and property documentation requirements.
Four forms. One purpose: prove you're a qualified borrower. What each form asks and why.
How to document Housing Choice Voucher income so lenders count every dollar. HAP contracts, verification, and common pitfalls.
Agency loans have different rules. What actually gets required—and what gets deals rejected at the closing table.
PCA, Phase I ESA, and Seismic reports—the third-party assessments that can trigger escrows or kill deals.
The only document that overrules your Rent Roll. Here's how to prevent a "side deal" from killing your closing.
Pro Forma policies, Schedule B exceptions, ALTA endorsements—the title requirements that delay closings when you're not ready.
Index + Spread, breakage fees, and the float period trap. What happens when your rate lock expires before closing.
Why borrowers lose $25,000 before the loan even closes—and how to protect your upfront cash.
The binding document that separates term sheet promises from funded loans—and the conditions that can still kill your deal.
The Sponsor Meeting, Form 1115 deep dive, and how to explain your way through credit events without killing your deal.
What happens after closing—servicing requirements, annual compliance, prepayment, and how to exit without penalties.
What happens after the loan funds—inspections, escrows, reporting, and how to keep your servicer from becoming your adversary.
When your low-rate loan is worth more than your building. The full assumption process, timeline, and fees.
When your low rate is worth keeping. How to extract equity while preserving your existing Freddie Mac loan.
How to prepay a Freddie Mac loan by substituting Treasury securities—and when the math actually works.
The math of LTV cures, the pain of negative proceeds, and how to plan when markets turn against you.
Why Freddie Mac treats second liens like deal-killing landmines—and the narrow paths around the prohibition.
The actions that require lender consent—and what happens when you forget to ask.
Bad Boy Carveouts, Springing Recourse, and the fine print that puts your personal assets at risk.
Understand the fundamentals that drive lender decisions: