Are $1M+ commercial loan terms better?

[Amy A.]

I am looking to expand my portfolio into bigger multifamily properties out of my area. Right now all of my loans for 5+ units are with a local bank. They are around 4.5% interest, 5 year fixed with 25 year amortization. Pretty low closing costs. 25% minimum LTV. My largest loan is around $450k.

I've heard somewhere that commercial mortgages of over $1M have better rates that are fixed long term.  Is this true or am I looking for a unicorn?  Thank you.

[Tom Keating]

@Brian Karlow @Amy A. @Michael Masters, Yes, you could expect lower rates along with better terms. Freddie Mac SBL program provides up to 80% LTV, lower rates, up to 10-years fixed, 30-year amortization fully non-recourse debt. These commercial programs that provide these advantageous terms and fully non-recourse debt, the loan amount typically needs to be $1mm+.

@Brian Karlow you will need to go to a Freddie Mac SBL Seller/Servicer in order to receive a loan in this program.  A seller/servicer such as CBRE who is currently #1 in volume and turn times.  Feel free to PM for more details.