At a time when the capital markets are tightening in some sectors, multifamily developers and investors are exploring new ways to get deals done. Fannie Mae and Freddie Mac is offering an attractive opportunity to private investors.
Fannie Mae and Freddie Mac’s small balance loan program is designed to target areas of the marketplace that lacked liquidity options and focuses on multifamily deals with a mortgage balance from $1 to $5 million. A combination of non-recourse, higher leverage points—up to 80%—and attractive rates have made the program a hit with buyers.
GlobeSt.com caught up with Darron Kattan and Casey Siggins of Franklin Street to get some insight into these instruments in part two of this exclusive interview. You can still read part one: Multifamily Private Investors Turning To New Financing Option.