Freddie Mac Small Balance Loans (SBL) require standardized forms that certify who you are, how your entity is structured, and what you're representing about the property. These forms aren't bureaucratic filler—they're the legal basis for your loan.
During our 41-unit refinance, we filled out Forms 1112, 1114, and 1115 (multiple copies). The lender didn't hand us instructions—they handed us blank PDFs and said "fill these out." Here's what we learned.
The Four Core Forms
| Form | Name | Who Fills It | Purpose |
|---|---|---|---|
| 1112 | Property Certification | Borrower | Certifies property condition and third-party report dates |
| 1114 | Organizational Chart Certification | Borrower | Maps ownership structure from property to individuals |
| 1115 | Borrower/Key Principal Certification | Borrower + Each KP | Certifies identity, authority, and background of each party |
| 1116 | Representations & Warranties | Borrower | Legal attestations about the property and transaction |
Form 1115 is the only form you'll fill out multiple times. You need one for the Borrower entity AND one for each Key Principal (guarantor). If you have two guarantors, you'll complete three 1115s.
Form 1112: Property Certification
This is the "property diligence" form. It asks you to certify dates and conditions related to third-party reports.
What It Covers
- Date of most recent appraisal
- Date of Property Condition Assessment (PCA)
- Date of Environmental Site Assessment (ESA)
- Confirmation that no material changes have occurred since reports were completed
- Certification that property is in compliance with local codes
Timing matters: Don't sign Form 1112 until all your third-party reports are finalized. We held ours until the final November expense data was added to the package because the dates on the form need to match the actual report dates.
Common Mistakes
- Signing too early: If report dates change, your certification is inaccurate
- Wrong dates: Use the "as of" date on the report, not when you received it
- Missing updates: If there's been property damage or repairs since the PCA, disclose it
Form 1114: Organizational Chart Certification
This form requires you to diagram your entity structure from the property-owning LLC up to the individual humans who control it.
What It Shows
| Level | Example | What to Include |
|---|---|---|
| Property | Bella Vista Apartments | Property name and address |
| Borrower Entity | Bella Vista Apts of LP, LLC | Entity name, state of formation, EIN |
| Intermediate Entities | George Family Holdings, LLC | If applicable—any entities between borrower and individuals |
| Key Principals | Sunny George (50%), Achamma George (50%) | Names and ownership percentages |
The chart must trace ownership all the way up to natural persons. If your LLC is owned by a trust, you need to show the trust beneficiaries.
Form 1114 Requirements
- Ownership percentages must total 100% at each level
- All entities must show state of formation
- Key Principals (25%+ owners or control persons) must be identified
- Chart must match Operating Agreement exactly
Form 1115: Borrower/Key Principal Certification
This is the most detailed form, and you'll fill it out multiple times. There are two versions:
| Version | Who Signs | Focus |
|---|---|---|
| 1115 - Borrower | Authorized signer for borrowing entity | Entity formation, authority, litigation history |
| 1115 - Key Principal | Each individual guarantor | Personal background, experience, financial status |
What the Borrower 1115 Asks
- Entity legal name and formation details
- Principal place of business
- Authorization to enter into the loan
- Litigation, bankruptcy, or default history
- Certification that Operating Agreement allows this transaction
What the Key Principal 1115 Asks
- Full legal name and all aliases
- Date of birth and SSN
- Current residence address
- Citizenship/residency status
- Criminal history (felony convictions)
- Bankruptcy filings (personal and business)
- Loan defaults or foreclosures
- Real estate experience (number of units owned/managed)
The "Prior Bad Acts" questions matter: Freddie Mac runs background checks. If you answer "No" to bankruptcy or litigation questions and they find something, the loan gets denied—or worse, you've committed loan fraud. Disclose everything.
The Experience Section
Form 1115 asks Key Principals about their real estate experience. This isn't just curiosity—it affects your loan terms.
| Experience Level | Typical Requirements |
|---|---|
| Strong (100+ units) | Standard terms, potentially lower rates |
| Moderate (20-100 units) | Standard underwriting |
| Limited (<20 units) | May require additional documentation or property management |
| First-time borrower | Third-party management may be required |
Don't understate your experience. Include all properties you've owned, managed, or been a KP on—even if they weren't Freddie Mac loans.
Form 1116: Representations & Warranties
This form contains the legal attestations that form the basis of your loan. By signing, you're making binding legal statements about:
- Property ownership and title
- Accuracy of financial statements
- No pending litigation affecting the property
- Compliance with environmental laws
- No undisclosed liabilities
- No material adverse changes since application
These representations survive closing. If you state "no environmental issues" and contamination is later discovered that you knew about, you're personally liable. Read every line.
The Filing System
With multiple forms and multiple signers, organization is critical. Here's how we tracked ours:
07_SPONSOR_DOCUMENTS/ └── Freddie_Mac_Forms/ ├── Form 1112 - Property Certification.pdf ├── Form 1114 - Certification Organizational Chart.pdf ├── Form 1115 - Borrower - [Entity Name].pdf ├── Form 1115 - KP - [Guarantor 1 Name].pdf ├── Form 1115 - KP - [Guarantor 2 Name].pdf └── Signed_Versions/ ├── Form 1112 - Signed.pdf ├── Form 1114 - Signed.pdf ├── Form 1115 - Borrower - Signed.pdf ├── Form 1115 - KP - [Name] - Signed.pdf └── Form 1115 - KP - [Name] - Signed.pdf
Keep unsigned drafts separate from signed versions. When the lender asks "did we get the signed 1114?" you can answer instantly.
The Sequencing
These forms aren't filled out all at once. Here's the typical timeline:
| Phase | Forms | Why Then |
|---|---|---|
| Application | 1114, 1115 (all) | Lender needs entity/KP info to underwrite |
| Post-Third Party Reports | 1112 | Can't certify dates until reports are final |
| Pre-Closing | 1116 | Final reps & warranties executed at closing |
Common Errors We Avoided
| Error | Consequence | Prevention |
|---|---|---|
| Org chart doesn't match Operating Agreement | Legal counsel flags inconsistency, delays closing | Pull OA before filling 1114, verify percentages |
| KP 1115 missing for one guarantor | Can't close until all KPs are certified | Count guarantors, prepare that many 1115s |
| Signed 1112 before PCA was finalized | Dates don't match, form needs re-execution | Hold 1112 until all reports are "final" |
| Experience section blank on KP 1115 | Underwriter assumes no experience, adds conditions | List all properties ever owned/managed |
The SAE Provision Connection
Form 1115 asks whether your Operating Agreement contains "Single Asset Entity" (SAE) provisions. If your OA was drafted before you knew you'd get a Freddie Mac loan, the answer is probably "No."
This means you'll need an Operating Agreement Amendment adding SAE language before closing. See our article on Freddie Mac SBL Requirements for what SAE provisions look like.
These forms are legal documents, not paperwork. Every checkbox, every date, every signature creates a binding representation. Fill them accurately the first time, and you'll avoid the re-execution requests that delay closings.