New Offering Meets Gap in Long-Term Financing for Small Multifamily Buildings
The Community Preservation Corporation, a leading not-for-profit affordable housing and neighborhood revitalization lender, has been approved as one of six lenders to participate in Freddie Mac’s Small Balance Loan program. Under this new program, CPC will work with Freddie Mac to meet the financing needs of small multifamily properties throughout New York State and the region by providing long-term capital to this underserved segment of the multifamily market.
“For over 40 years, CPC’s primary niche has been to provide consistent and flexible capital to meet the financing needs of small multifamily buildings. By participating in Freddie Mac’s Small Balance Loan program, we now have a wider range of permanent loan products to better serve our customers with loans ranging from $1 million to $5 million and low interest rates,” said Rafael E. Cestero, President and CEO, CPC. “CPC has a longstanding working relationship with Freddie Mac and we look forward to furthering our partnership at a time when providing capital to small rental buildings is more critical than ever.”
“Partnering with a widely-respected small loan lender like CPC will help to bring private capital investment to the small multifamily loan space,” said David Brickman, Executive Vice President, Freddie Mac Multifamily. “We will rely on CPC for its local expertise and 40-year experience to connect with small building owners on the ground to meet the increasing capital needs of smaller apartment communities which house a large portion of the nation’s renters.”
The Small Balance Loan program will offer mortgages ranging from $1 million to $5 million with flexible prepayment options (declining prepayment or yield maintenance) to support the acquisition or refinancing of multifamily buildings with five units or more. CPC will streamline the pricing, underwriting, closing, and funding process to ensure a smooth acquisition or refinancing for small rental developments.
To learn more about Freddie Mac’s Small Balance Loan product, please visithttp://www.communityp.com/products/small-balance-loan.
About Freddie Mac
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
Contact: Eric Bederman, VP/Communications
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