Freddie Mac vs. Local Commercial Bank Loan for Small MF

[Brandon Yuan]

Hi BP members:

What's your thoughts on doing a Freddie Mac vs. local commercial bank loan for a small MF apt (acquiring a 30 units apt)?  Freddie Mac loan has its own advantage obviously (non-recourse, fixed rate, 30 year amortization), but it has more stringent qualification requirements, higher closing cost (origination fee, other report like PCA which is not required by local bank, etc), and prepayment penalty (this could be a plus or minus since future buyer can assume the loan depends on how you see it). On the other hand, the local bank (I'm already a client for another loan) has less stringent qualification requirements but it's floating interest rate (based on prime rate), personal guaranteed, and only 20 year amortization. What would you prefer the better option to go and why? Thanks in advance