Woo Berkadia! We're the #1 Freddie Mac Optigo / #2 Fannie Mae DUS multifamily lender nowadays in 2025.
Below are the current loan program parameters for Freddie Mac Small Balance Loans (SBL) and Fannie Mae Small Loans for anyone who's interested. As of today, rates are in the mid 5.00% - low 6.00% range for max leverage (1.20x DCR / 30-year am), 5-10 year term (partial term IO), non-recourse loans with yield maintenance prepayment structures (prior to any rate buydown).
Feel free to reach out with any questions on these programs - happy to weigh in on the various Freddie & Fannie multifamily programs (Small Balance, Conventional, Lease-Up, Supplementals) as well as loan assumptions, loan docs, loan costs, legal requirements, etc.
Freddie Mac Small Balance Loans
Loan Purpose: Permanent Financing (Refinance & Acquisition)
Loan Proceeds: $1,000,000 - $7,500,000
Loan Sizing: 80% LTV; 1.20x DCR; 30-Year Amortization (Top Markets)
Loan Sizing: 80% LTV; 1.25x DCR; 30-Year Amortization (Standard)
Loan Sizing: 70-75% LTV; 1.30x DCR; 30-Year Amortization (Small)
Loan Sizing: 70-75% LTV; 1.40x DCR; 30-Year Amortization (Very Small Markets)
Loan Term: 5-10 Year Term (Fixed), 10 or 20 Years (Hybrid ARM)
IO Term (PTIO): Partial Term IO Available
IO Term (FTIO): Full Term IO Available @ Lower Leverage
Rate Types: Fixed & Hybrid ARM
Rate Lock: Rate Lock @ Application
Rate Structure: Coupon
Rate (Est): Mid 5.00%’s - Low 6.00%’s (Assumes Mission Driven)
Non-Recourse: Non-Recourse w/ “Bad Boy” Carveouts
Prepayment: Standard - Greater of YM or 1.00%
Flexible Prepay: Flexible Options – Stepdown & Extended Open/Par Periods
Rate Buydowns: Yes – Rate Buydowns Available Up to 2.00%
Assumable: Yes – Assumable Loan
Cash Out Refi: Yes – Cash Out Refi OK
Fannie Mae Small Loans
Loan Purpose: Permanent Financing (Refinance & Acquisition)
Loan Proceeds: $1,000,000 - $9,000,000
Loan Sizing: 80% LTV; 1.25x DCR; 30-Year Amortization
Loan Term: 5-30 Year Term
IO Term (PTIO): Partial Term IO @ 80% LTV; 1.25x DCR
IO Term (FTIO): Full Term IO @ 65% LTV; 1.35x DCR
Rate Type: Fixed Rate
Rate Lock: Rate Lock @ Loan Commitment
Rate Structure: U.S. Treasury Yield +Spread
Rate (Est.):
High 5.00%’s – Low 6.00%’s (Assumes Mission Driven)
Non-Recourse: Non-Recourse w/ “Bad Boy” Carveouts
Prepayment: Yield Maintenance; 3 Mos Open @ 1.0%; 3 Mos Open @ Par
Flexible Prepay: Flexible Prepayment Options Available
Escrows: Taxes, Insurance, Replacement Reserves
Rate Buydowns: Yes - Rate Buydowns Available Up to (1.25%-2.00%)
Assumable: Yes – Assumable Loan
Cash Out Refi: Yes – Cash Out Refi OK