|Freddie Mac Small Loan Program - Available Nationwide
This nationwide loan program is now the best option to finance apartment buildings and some mixed-use buildings. You can now use up to 40% of the commercial income to qualify. No escrow reserves required.
The 7-year fixed rate is currently between 3.6-3.8% in major markets. Up to 80% LTV for purchases with reasonable closing costs. There is a sliding prepayment penalty (no yield maintenance like FNMA) and a 30-year amortization.
The property has to be stabilized and in good condition. 680 FICO score required. Lender par pricing.