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