Freddie Mac Small Balance Apartment Loans and Multifamily Loans

Freddie Mac Small Balance Apartment Loans 2018-07-30T15:40:08+00:00

Whether you are new to apartment financing or a seasoned apartment operator the Freddie Mac small balance loan program can be an excellent choice for your apartment loan.  The Freddie Mac Small Balance Loan program allows you to take advantage of some of the most attractive multifamily loan pricing and flexibility in the market today.

Here are some key benefits of this multifamily loan product:

  • Non-Recourse (bad boy carveouts)
  • Rates are typically below Bank Rates.
  • Longer Fixed Rate Loan terms – Up to 10 years.
  • Loan Amortization up to 30 years

Apartment owners who qualify for the Freddie Mac Small Balance loan program get the same benefits of low rates, non-recourse and prepayment flexibility as the larger multifamily projects.  Furthermore, the loan application process is non-complicated and streamlined.

Not sure if the Freddie Mac Small Balance Loan is good for you and your apartment project?  There are some key differences between the Freddie Mac Small Balance Loan Program and the Fannie Mae Small Balance Loan Program and we can help you decide which is best for your apartment project.   Some additional Freddie Mac Small Balance loan information is below and feel free to contact one of our Freddie Mac Loan Specialists by clicking apply now at bottom of page.

Freddie Mac Small Balance Loans

$1,000,000 – $7,000,0000  $750,000 with exceptions

LOCK IN RATE AT APPLICATION – Minimize Interest Rate Risk

  • Multifamily: 5+ unit market-rate multifamily properties.
  • Non-Contiguous Properties: Allowed with exceptions.
  • Occupancy: 90% for past 90 days (exceptions down to 85% and down to 30 days for new construction).
  • Mixed Use: Available subject to no more than 40% non-residential income and no more than 40% of net rentable area.
  • Ineligible: Senior housing, student housing, greater than 25% concentration of military and affordable housing.


Top Markets

Max LTV:  80% for purchases -80% for refinances – 1.20 DSCR minimum.

Standard Markets:

80% for purchases -80% for refinances – 1.20 DSCR minimum.

Small Markets:

75% for purchases – 70% for refinances – 1.30 DSCR minimum.

Very Small Markets:

Max LTV 75% for purchases – 70% for refinances – 1.40 DSCR minimum.

Prepayment Penalty:

Step down or yield maintenance. Soft-step downs are also available.

Interest Only Options Available

Max interest only period 1 year for 5 year terms, 2 years for 7 year terms, 3 years for 10 year terms.

Please note: I/O is not available for 5 year loans in small or very small markets, 1 year available for 7 year loans and 2 years available for 10 year loans.


Yes. Subject to 1% fee and lender approval of borrower.


Non Recourse.  Standard Bad Boy Carveouts Apply.

Application Fees:

  • $7,000 (covers 3rd Parties – Appraisal, Eng, Env, O&M’s)
  • 10 basis points of Loan Amount (Freddie Mac processing fee)

Borrower Requirements:

  • 9 months principal and interest liquidity
  • Net worth greater than the loan amount.
  • Minimum 650 credit score.
  • No bankruptcies, foreclosures, deed-in-lieu, or defaults for 7 years.
  • Borrower must be a US entity (single asset not required, but preferred).