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  Small Balance Loan Program
  This program provides financing for the acquisition and/or refinance of conventional multifamily housing with 5 residential units or more, including conventional housing with tax abatement and Section 8 vouchers, and cooperatives in the five boroughs of New York City and Long Island. The loan amount − or Loan To Value (LTV) − may go up to 75% in acquisitions and up to 80% in refinancing. The underwriting guidelines include a minimum FICO score of 650, net worth equal to the loan amount being requested, and liquidity equal to nine months of payments on the loan. Further, the loan may be structured in six different ways (3 fixed rate options and 3 hybrid adjustable rate options with initial fixed rate periods).
Eligible borrowers include: Individuals who are U.S. citizens, Limited Partnerships (LP), Limited Liability Companies (LLC), Single Asset Entities (SAE), Special Purpose Entities (SPE), Tenancy−in−Common (TIC) with up to five unrelated members and Trusts (Irrevocable Trusts and Revocable Trusts with a warm body guarantor).
 
  The Small Balance Loan Program (SBL) for properties with five or more residential units extends financing for purchases and refinancing of small balance loans using hybrid or fixed rate loan products.
 
ELIGIBLE PROPERTIES Acquisition or refinance of conventional multifamily housing with 5 residential units or more, including conventional housing with tax abatements and Section 8 vouchers, and cooperatives in the five boroughs of New York City and Long Island.
LOAN STRUCTURE
LOAN AMOUNTS $1.0 to $6.0 million (and up to $7.5 million in top markets)
LOAN TERMS 5-, 7-, or 10-year fixed-rate loan
20-year hybrid ARM with initial 5-, 7-, or 10-year fixed-rate period
AMORTIZATION Amortization up to 30 years
RECOURSE Non-recourse and assumable loans
OPTIONS Cash-out options
No underwriting floors in top markets
Declining prepayment options
60-120 day rate lock period available
UNDERWRITING GUIDELINES
CREDIT Minimum FICO score of 650
SPONSOR FINANCIALS Net worth equal to loan amount
Liquidity equal to nine months of payments
DEBT SERVICE COVERAGE AND LTV Debt Coverage Ratio and Loan-To-Value see below:
 
Minimum Amortizing Maximum LTV
DCR
Top SBL Markets 1.20X 80%
Standard SBL Markets 1.25X 80%
Small SBL Markets 1.30X 70%
Very Small SBL Markets 1.40X 70%
*Maximum 75% LTV for Acquisitions
 
  This information is intended for professional user only. SunWest Mortgage Company, Inc. sources Small Balance Loans on behalf of Sabal TL1, LLC, an affiliate of the Sabal group of companies, an approved Freddie Mac Small Balance Loan Seller/Servicer. The information in this document is not a replacement or substitute for information found in the Freddie Mac Multifamily Seller/Servicer Guide. Terms set forth herein are subject to change without notice. For more details on the Freddie Mac Small Balance Program, visit: http://www.freddiemac.com/multifamily/product/sbl.html
  Contact Program Managers: multifamily@swmc.com