Overcome Financing Hurdles: Small Balance Loans for Multifamily Properties
Small balance multifamily loans are a crucial financing tool for commercial real estate investors focusing on properties with fewer units. These loans, typically ranging from $1 million to $7.5 million, cater to investors acquiring or refinancing apartment buildings, often with 5 to 50 units.
Loan Amounts from $1 Million to $7.5 Million
Maximum LTV 80%
Must Be Existing Stabilized Multifamily
Non-Recourse Available with Standard Carve Outs
More Flexible Underwriting Criteria
One of the primary advantages of small balance multifamily loans is their accessibility. Compared to larger commercial loans, they often have less stringent requirements, making them attractive to newer or less established investors. This can mean more flexible underwriting, potentially accommodating borrowers with slightly lower credit scores or less extensive experience.
With loan amounts up to $7.5 million, these programs are great for financing acquisitions, refinancing existing properties, or even funding renovations.
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.
