Core concepts
Non-recourse
Lender pursues property only; personal assets protected (subject to carve-outs).
Long amortization
30-year amort common; 10-year fixed standard.
Loan size
Typical minimum $1M; SBL programs allow smaller deals.
Examples
- $2.5M Freddie SBL on 24-unit apartment at 75% LTV, 10-year fixed.
Practical applications
- Multifamily operators past 20+ units.
Common mistakes
- Underestimating closing timeline.
- Ignoring prepayment penalty (yield maintenance/defeasance).
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