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Freddie Mac Small Balance Loans

Freddie Mac Small Balance Loans

The Freddie Mac small balance program provides financing of small balance loans using hybrid ARM or fixed-rate loan products, offering partial-term and full-term interest-only. This program also features a streamlined process and competitive pricing.

Small Balance Loan Options and Requirements
Loan Size $1million - $5 million
Loan Purpose Acquisition or refinance
Term
  • 20-year hybrid ARM with initial 5-, 7-, or 10-year fixed-rate period
  • 5-, 7-, or 10-year fixed-rate loan
Max Amort Up to 30 years
Min DSCR DSCR Calculator 1.20x
Interest Only Partial interest-only; full-term interest-only may be available
Prepayment Options Declining schedules and yield maintenance available for all loan types; defeasance available for fixed-rate loans only—
Third Party Subordinate Financing Permitted subject to certain restrictions; combined loan-to-value (LTV) ratio cannot exceed 80% or go below combined debt-service coverage ratio (DCR) of 1.25x
Recourse Recourse Non-recourse with standard carve-out provisions required
Eligible Properties Conventional multifamily housing with five residential units or more, including conventional housing with tax abatements and Section 8 vouchers, and cooperatives in the five boroughs of New York City and Long Island
Occupancy Financing Yes, subject to requirements specified in the Loan Agreement
Lock Options 60- to 120-day rate-lock period available

Program Plus Freddie Mac Loans

Program Plus Options
Fixed Rate Loans Floating Rate Loans
Lease-Up Loans Manufactured Housing Community Loans
Revolving Credit Facility Student Housing Loans
Supplemental Loans Value-Add Loans

Affordable Housing Freddie Mac Loans

Affordable Housing Options
9% LIHTC Cash Loans Bond Credit Enhancement with 4% LIHTC
Bond Credit Enhancement with Other Affordability Components Cash Loan with Other Affordability Components
Direct Purchase of Tax-Exempt Mortgages Preservation Rehabilitation Financing
Supplemental Loans Tax-Exempt Bond Securitization (TEBS)
Variable Liquidity Pricing

Other Freddie Mac Loans

Other Freddie Loan Types
Student Housing Loans Small Balance Loans
Freddie Mac Single-Family Rental (SFR) Pilot Program

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Fernando and Leanne are Amazing

Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever

- Nirav Patel

She Took Care of All My Needs

If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.

- Vincent Arias

Commercial Loan Direct Streamlined the Whole Process

We were in unfamiliar territory when it came to refinancing. Commercial Loan Direct streamlined the whole process for us. Leann connected us with lenders that were the right fit for us. The money and time we saved was so worth it. I highly recommend them

- Rita Pisarski