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Freddie Mac Small Balance

In October 2014, Freddie Mac launched a new (SBL) Small Balance Loan Program directed at multi-unit homes. The goal was to create a platform for financing loans between $1 million to $5 million. For the small homeowners market, this means higher liquidity and stability, allowing for more efficient investments and higher returns in future properties.

Product Highlights

  • Non-recourse
  • Highly competitive rates with fixed lender closing costs
  • Lending platform for all markets up to 80% LTV, I/O available
  • Flexible prepayment options
  • Streamlined process

Small Balance Loan Program and Credit Features

MARKETS: Nationwide
LOAN AMOUNT: $1 million to $5 million
LOAN PURPOSE: Acquisition or refinance
FULL LEVERAGE PRICING: 3.25% to 3.85%: 5-year fixed
3.85% to 4.20%: 7-year fixed
3.90% to 4.40%: 10-year fixed
AMORTIZATION: Up to 30 years (interest only also available)
TERM: Five, seven, 10-year fixed / 20-year hybrid arms available
PREPAYMENT PROVISIONS: Step-down, yield maintenance and defeasance prepayment options
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, Section 8 vouchers and student housing under 50% concentration
OCCUPANCY REQUIREMENT: Minimum 90% average physical occupancy required over trailing three-month underwriting period
ESCROWS / IMPOUNDS: Replacement reserves waived; insurance waived; property taxes required, unless LTV is 65% or less
NET WORTH & LIQUIDITY: Net worth: Equal to the loan amount
Liquidity: Equal to nine months of principal and interest
RATE LOCK DEPOSIT: 1% for 60 and 120 days


At Edward Voccola LLC, a team of qualified professionals who have extensive experience in the mortgage industry are ready to help finance your commercial real estate needs. We can connect you with the capital without the hassle of paperwork and long closing periods that banks require. Our aim is to get you the loan with the most favorable conditions so you can focus on expanding your business. If you have any questions please call us at (617) 233-5555.

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