Freddie Mac Small Balance Loan

Let's move your project forward


Product Highlights

  • Financing for the acquisition or refinance of small balance loans, offering partial-term and full-term interest-only
  • Streamlined processes for underwriting, closing and funding
  • Streamlined loan documents



Loan Amount

  • Up to $7.5 million in all markets
  • Note: Deals greater than $6 million and up to $7.5 million in Small and Very Small Markets may be permitted subject to Freddie’s approval of an exception request

Unit Limitations

  • Loan amount ≤$6 million: no max unit limitations
  • Loan amount >$6 million and ≤$7.5 million: up to 100 units (exceptions permitted above 100 units)

Loan Purpose

Acquisition or Refinance

Loan Terms

20-year hybrid ARM with initial 5, 7, or 10-year fixed rate period
5, 7, or 10-year fixed rate loans


Up to 30 years

Interest Only

Partial-term interest-only; full-term interest only may be available


Declining Prepayment schedules and yield maintenance available for all loan types – please refer to the chart on page 3

Eligible Borrowers / Borrowing Entities

Up to $6 million - Individuals who are US citizens; limited partnerships; limited liability companies; Single Asset Entities (SAE); Special Purpose Entities (SPE); tenancy-in-common (TIC) with up to five unrelated members; and Trusts (irrevocable trusts and revocable trusts with an individual guarantor)

Between $6 million and $7.5 million - Single Asset Entities