Freddie Mac Small Balance Loan Program

Now offering standard loan limits of $1 million to $6 million in all markets, and up to $7.5 million in top and standard markets for certain properties.

  • Choice and Flexibility – Six fixed rate and hybrid ARM loans
  • Unbeatable Terms – Interest-only, coupon pricing and declining prepayments
  • Ingenuity – In-market experts craft creative solutions on single and pooled loans
  • Fast and Simple – Streamlined, quote to close
  • Commitment to Service – A partner for the life of your loan

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LOAN AMOUNTS$1M – $6M in all markets; $1M – $7.5M in Top and Standard Markets for properties with 100 units or less
LOAN PURPOSEAcquisition or Refinance (Cash Out Available)
ELIGIBLE PROPERTIESConventional multifamily housing with five residential units or more. Mixed use subject to limitations.
LOAN TERMS20 Year Hybrid ARM with initial 5-, 7-, or 10 year fixed rate period
5-, 7-, or 10-year fixed-rate mortgage
INTEREST ONLYPartial interest-only available
Full-term interest-only may be available
AMORTIZATIONUp to 30 years
PREPAYMENTSDeclining schedules and yield maintenance available for all loan types
1.25x Standard
1.30x Small
1.40x Very Small
MAXIMUM LTV80% available in Top and Standard Markets
RECOURSENon-recourse with standard carve-out provisions
CREDITMinimum FICO score of 650
OCCUPANCYMinimum 90% occupancy of units for 90 days prior to underwriting


  • Non-Recourse
  • Highly competitive rates
  • Flexible terms and prepayment options
  • Streamlined process – faster closing times
  • Interest only available
  • Up to 80% LTV in certain areas


Boston, Chicago, Dallas, Denver, Los Angeles, Miami, Minneapolis, New York, Portland, Sacramento, San Diego, San Francisco, San Jose, Seattle and Washington D.C.

Stabilization Bridge Financing

LOAN TERMSTypically 15-month base term + two 3-month extensions
LOAN PURPOSEAcquisition or Refinance
ELIGIBLE PROPERTIESConventional multifamily housing with five residential units or more. Mixed use subject to limitations.
RENOVATIONPeriodic advances from escrow accounts to fund renovation costs
RATEFloating, minimum of 1-month Libor + 450 bps
AMORTIZATIONNone, Interest Only
EXIT FEENo exit fee if property refinanced with Insignia, otherwise 2%
EXTENSION FEE(S)25 bps for each 3-month extension
MINIMUM DSCR0.85x (on In-Place NOI)
RECOURSENon-recourse with standard carve-out provisions
SPONSORMinimum FICO score of 650; no foreign borrowers
NET WORTH & LIQUIDITYNet worth > 100% of estimated perm loan Liquidity > 9 months of debt service on estimated perm loan


Finally, a bridge program designed specifically for small balance MF properties.

  • Fast and streamlined closings
  • Highly efficient and low cost to roll into permanent loan
  • Non-recourse
  • Competitive rate and terms


  • Current rent roll with both In-Place Rents and Market Rents, ideally supported with rent comp data
  • Estimate of Stabilized NOI
  • Estimate of Stabilized Value, ideally with support for exit cap rate, value / unit and value / sf
  • Detailed renovation budget
  • Sponsor information, ideally PFS, SREO and bio describing re-position experience

Affordable Housing Express

MAXIMUM LOAN AMOUNT$10 million or less in all markets
LOAN PURPOSEAcquisition or Refinance
LOAN TERMS5, 7, 10 or 15 year fixed-rate loan; 5, 7 or 10 year floating-rate loan
INTEREST-ONLYPartial-term interest-only; full-term interest-only may be available

Declining Schedule and Yield Maintenance for all loan types; Defeasance also available for fixed-rate loans

  • 5 year – (5,4,3,2,1)
  • 7 year – (5,5,4,4,3,2,1)
  • 10 year – (5,5,4,4,3,3,2,2,1,1)
  • 15 year – (5,5,5,4,4,4,3,3,3,2,2,2,1,1,1)
NET WORTH AND LIQUIDITYNet Worth: Equal to loan amount Liquidity: Equal to 9 months of principal and interest
RECOURSENon-recourse with standard carve-out provisions required

Uncapped multifamily stabilized properties with one or more to the following affordable characteristics:

  • LIHTC properties in at least year 11 of their compliance period
  • Long-term HAP Contracts
  • Regulatory Agreements that impose rent/income restrictions
  • Tax Abatements
  • Section 8 Vouchers


  • ARM and fixed-rate options
  • Full-Term Interest Only Available
  • Up to 80% LTV / 1.20x min DSCR in Top Markets
  • 30-year amortization
  • Declining prepayment option
  • Lower transaction costs
  • Certainty of execution

Borrower Requirements:

  • 9 months principal and interest liquidity (before refi or after purchase). Retirement accounts not included.

  • Net worth equal to the loan amount.

  • Minimum 650 credit score.

  • No bankruptcies, foreclosures, deed-in-lieu, or defaults for 7 years.

  • At least one year multifamily or commercial real estate experience.

  • Borrowers up to $6 million: Individuals (U.S. citizens only), limited liability companies, limited partnerships, Single Asset Entities, Special Purpose Entities, tenancies in common (with up to five unrelated members), and Trusts (irrevocable trusts and revocable trusts with an individual guarantor.)

  • Borrowers more than $6 million: Single Asset Entities.

Documents Required for New Loan Submissions:

  • Personal financial statement and SREO for each guarantor (anyone with more than 20% interest).

  • Last 3 years operating statements.

  • Trailing 12 month, month-by-month operating statements.

  • Current rent roll.

  • Subject photos.

  • Property summary/description.

Portfolio Executions: 

Freddie Mac SBL Portfolio Executions provide benefits to borrowers who take out more than one SBL loan in top and standard markets.

  • Benefits: Fewer forms, may achieve better pricing and larger loan size. May also achieve reduced transaction costs.

  • Requirements: Sellers must collect and hold a Good Faith Deposit on behalf of Freddie Mac, of 0.1% of the loan amount or $50,000, whichever is greater. This is refundable to the borrower upon closing.


  • Up to 80% LTV allowance

  • Streamlined application process

  • Loans are non-recourse

  • Interest-only options

  • 30-year amortizations

  • Variety of hybrid ARM and fixed-rate options available

  • Loans are assumable with approval and 1% fee

  • 60-120 day rate locks typically available


  • Requires third-party reports, including Appraisal, Phase I Environmental Assessment, and Engineering Report

  • Typically requires replacement reserves of between $200 and $300 per unit

  • Requires an application fee to Freddie Mac

  • Requires Freddie Mac processing fee of 0.1% of the loan amount

  • Subordinate debt not permitted

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