What is Freddie Mac Small Balance? (For multifamily 5+ unit properties)

Freddie Mac Small Balance is a lending program offered by Freddie Mac, a government-sponsored enterprise (GSE) that provides liquidity and stability to the U.S. housing market.

The Small Balance program is designed to provide financing for smaller, multifamily properties with 5 to 50 units. These properties are typically owned by individuals or small businesses and are often located in less urban areas.

The program offers competitive interest rates, fixed or floating-rate loan options, and flexible loan terms to eligible borrowers. It also includes streamlined underwriting and financing processes, which can make it easier for borrowers to obtain financing for their properties.

Overall, Freddie Mac’s Small Balance program provides an important source of financing for small multifamily property owners, helping to support the availability of affordable rental housing in the United States.

The maximum loan amount that can be borrowed through Freddie Mac Small Balance program depends on a number of factors, including the property’s location, the borrower’s creditworthiness and experience, and the property’s cash flow and value.

Generally, the Small Balance program offers loans with a minimum loan amount of $1 million and a maximum loan amount of $7.5 million and up to 80 LTV. However, in certain high-cost areas, the maximum loan amount may be higher.

It’s also worth noting that the Small Balance program requires borrowers to have a minimum net worth and liquidity, and may have other eligibility requirements as well. These requirements can vary depending on the borrower’s individual circumstances and the specific terms of the loan.

If you’re interested in obtaining financing through the Freddie Mac Small Balance program, get in touch with us and we can help you navigate the eligibility requirements and loan application process.

And Yes, first-time investors may be eligible for a Freddie Mac Small Balance loan, as long as they meet the program’s eligibility requirements.

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