Relief for Homeowners and Renters
We’re extending help to millions of homeowners and renters facing financial hardships as a result of COVID-19.
Since the start of the Freddie Mac Multifamily Small Balance Loan (SBL) program in 2014, our teams continue to grow their presence and drum up business across the nation. While the Northeast has historically been one of the highest producing regions for portfolios of small apartment buildings, SBL has hit its stride in the Western region. From Seattle down to San Diego, we’re carrying out our mission for workforce housing and have seen an influx in SBL portfolio deals.
SBL portfolios have two or more loans packaged together and financed at the same time. These loans are for small apartment buildings, typically with five to 50 units, and can range anywhere from $1 million to $7.5 million.
“Year to date, over 40% of our SBL business nationally originated and funded in the Western region,” says Meg McElgunn, head of SBL Production. “This speaks volumes to the commitment of our team and partners who are out in the field. With Optigo® lenders Sabal, Greystone, CBRE, Arbor and Ready Capital, we’ve funded 17 portfolios in the Western region since the beginning of 2020 — totaling 157 deals and averaging 81% in mission-driven business.”
Several of the recent portfolios include properties in Los Angeles county, the most populous county in the country. “There are a lot of opportunities to help renters and borrowers given the population, but make no mistake, the borrowers in the Western region have no shortage of lender options,” says Ted Chen, SBL producer in the Western region.
Working closely with Sabal, we funded three Los Angeles portfolios that are 100% workforce housing and four that are 90% and above. “The 100% workforce housing portfolios encompass 1,438 rental units that house the workforce in a region that’s not very affordable,” says Syeda Hashmi, production manager with Sabal. “Sabal is proud to partner with Freddie Mac on financing properties that make a positive difference for so many.”
With Sabal, Freddie Mac Multifamily helped finance this 100% workforce housing property in
the Van Nuys neighborhood, located in LA county.
Workforce housing is a huge focus of Freddie Mac’s mission. It helps an underserved group of renters — who typically make 80% or less of area median income — find quality, affordable housing. These residents are the backbone of our communities — people like teachers, firefighters and health care professionals.
Packaging deals together into an SBL portfolio streamlines the transaction process and can also offer cost reductions. Borrowers also receive the advantage of a coupon rate-hold when they apply for a Freddie Mac SBL portfolio.
In a Multi-Housing News article regarding new SBL loans, Greystone remarks in a prepared statement that all of the deals helped the borrowers secure more favorable financing terms while monetizing the existing equity in their portfolios. Our dedicated team works with lenders and credit counterparts to support borrowers and get to comfortable financing levels for all.
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