Freddie Mac Loan for small multifamily properties or broker?
Have anyone have recent mortgage experience with Freddie Mac SBL? In general, should I work with a mortgage broker to get the best deal? Curious to know what is the current rates and how soon the recent Fed rate hike will affect their mortgage rate? I'm looking to buy small multifamily (\~1.5MM, 6-12 units) next year in one of the Top Market tier (as defined by Freddie Mac: Chicago, Denver, Portland etc).
[{"id": "iuz2zlt", "text": "Hi mortgage broker here. I do a ton of SBL business. Fun fact, no one can actually call up Freddie Mac to get a loan. Instead you have to go to what\u2019s known as a Seller Servicer (ie Arbor, Walker Dunlop, Berkadia etc). You can call up one of these guys direct and submit your deal but as a \u201ccall in\u201d with no relationship, repeat business or volume, you probably won\u2019t get the best deal. \n\nAlso, you\u2019ll never reaaaaaally know if you being told the right thing when you go direct. They all sell the identical thing so there are definitely reputations for firms to just say whatever they have to say or put whatever they have to on paper to just take the deal \u201coff the street\u201d. This will result in a re-trade on terms but you\u2019ve already put down a 1% rate lock deposit so you ain\u2019t going anywhere. Brokers get paid no matter WHO wins the deal so they give it to you hard and straight which is very refreshing. \n\nA good broker works with all these guys and delivers them a continuous stream of all different types of FMAC FNMA loans over years and years. In exchange, he/she gets better services, pricing, and more aggressive underwriting etc. Additionally, a broker knows what\u2019s negotiable. FMAC SBL has a lot of different levers you can push/pull to get the lowest rate or highest proceeds and knowing how to get these desired output is something only learned over time and experience.\n\nLastly, while they all sell the same loan (literally, they all originate the same FMAC loan(s)) they differentiate primarily via pricing (origination fees and interest rate). I know first hand that there is not that much profitability for a seller servicer for FMAC loans under $2 million so without shopping the deal as a broker would, you don\u2019t know how much \u201cprofit\u201d is baked into the rate. \n\nLastly lastly, FMAC loans aren\u2019t \u201ceasy\u201d to understand. There\u2019s a lot of terminology and structure that very unique and nuanced real estate terminology. Not saying this can\u2019t be learned but by going to a broker who has the time and commitment to you to know exactly what everything means gives one a lot of peace of mind. \n\nI\u2019d say for your first couple rodeos before you become a master in it yourself it\u2019s very worthwhile to hire a broker. \n\nLastly lastly lastly, don\u2019t discount local banks or credit unions from consideration. Most of my work is NYC and we have a ROBUST regional bank lending presence that typically beats FMAC SBL on comparable loans fairly regularly. Other top markets are no different. A good broker will call ALL these institutions to pitch your loan so you have the closure knowing you truly got the best deal. You\u2019d be surprised how much pricing can differ between the bunch.", "replies": [], "depth": 1}]