Small Balance Multifamily Loans

Bridging the Gap: Small Balance Multifamily Loans

Small Balance Multifamily Loans are popular financing options for apartments with less than 100 units.  With generous terms, they cater to smaller properties that are often overlooked by large lenders.  Investors enjoy flexible loan options without third party reporting requirements and complex documentation.  Loan amounts range from $1 million to $7.5 million, making them suitable for financing acquisitions, refinancing existing properties, or even funding substantial renovations.

Small Balance Multifamily Loans for 5 to 100 Units
  • Loan Amounts from $1 Million to %7.5 Million
  • Maximum LTV 80%
  • Must Be Existing Stabilized Multifamily
  • Typically Best for 5-100 Units
  • Up to 30 Years Amortization
  • Non-Recourse Available with Standard Carve Outs
  • Interest Only Available
  • Loan Maturities from 5 to 30 Years

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Benefits of Small Balance Loans

  • Streamlined Process: Compared to their larger counterparts, small balance loans often involve a simpler application process with less documentation required. This translates to faster loan approvals and quicker closings.
  • Competitive Rates: Due to the involvement of government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac, small balance loans can offer attractive interest rates.
  • Flexible Terms: Loan terms for small balance loans can be structured to meet the specific needs of the borrower. This includes options for fixed or adjustable rates, and loan maturities ranging from 5 to 30 years.
  • Community Focus: These loan programs often target properties in underserved areas. This fosters both renter affordability and contributes to positive community development.

Small Balance Multifamily Loans

Freddie Mac SB Multifamily

Freddie Mac Small Balance Multifamily Loans allow investors to finance up to $7.5 M. Offering non-recourse, interest only options, investors can borrow up to 80% LTV in certain markets.
 

Fannie Mae Small Loans

Fannie Mae's Small Loan Program is also designed for owners of smaller apartment buildings. Acquisition and refinance loans range from $750,000 to $6 million, for 5-30 years.
 
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Mortgage Solutions for Small Market Investors

Small balance multifamily loans are a vital financial tool for investors looking to purchase or refinance properties with 5 to 100 units.  These loans serve as a cornerstone for real estate investment strategies, offering flexibility, accessibility, and competitive terms tailored to the needs of small-scale multifamily property owners.

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