Small Balance Commercial Loans – Freddie Mac

Grow Your Portfolio with Freddie Mac Small Balance Commercial Loans

Navigating Small Balance Commercial Real Estate with Ease

Minimum Credit Score


Maximum Debt To Income


Maximum Loan To Value


Maximum Loan Amount

Innovative Mortgage offers a variety of loan options, including Freddie Mac Small Balance Conventional Loans, which are an excellent fit for borrowers seeking financing for smaller multifamily properties. As a brokerage, we have the advantage of working with various lenders, each with their own unique overlays, allowing us to tailor the loan to your specific needs and secure the most competitive quote available.

What You Need to Know About Freddie Mac Small Balance Loans:

  • Loan Purpose: These loans are intended for the purchase or refinance of smaller multifamily properties.
  • Loan Amounts: They range from $1 million to $5 million, targeting properties with five to 50 units.
  • Property Types: Eligible properties include traditional, affordable housing, seniors housing, student housing, and manufactured housing communities.
  • Borrower Criteria: Borrowers must be a single-asset U.S. entity with all U.S. principals, although there may be allowances for foreign ownership interests.
  • Loan Parameters: These loans may have fixed or floating rates, typically amortized over 25-30 years with a balloon payment due at the end of the term, unless it is a self-amortizing portfolio loan.
  • Underwriting Standards: Freddie Mac Multifamily maintains high underwriting standards for loan quality, with a focus on each loan’s unique risks. This may involve more detailed underwriting for small properties, leveraging the strength of conventional multifamily loan business practices.

Why Choose Innovative Mortgage for Your Freddie Mac Small Balance Loan:

  • Personalized Matching: We will evaluate the specifics of your loan and work with our network of qualified, experienced lenders to find the best fit for your circumstances.
  • Competitive Rates: Our access to various lenders means we can provide competitive rates that may not be directly available to borrowers.
  • Experienced Guidance: Our team understands the nuances of Freddie Mac small balance loans and will guide you through the process.
  • Streamlined Service: We value efficiency and clarity, striving to make your loan experience as seamless as possible.

Preparing Your Application:

For a Freddie Mac Small Balance Loan through Innovative Mortgage, you’ll need to provide:

  • Six Months of Bank Statements: This helps in assessing your financial stability and cash flow.
  • Six Months of Merchant Processing Statements: If applicable, these documents will be reviewed to understand the transaction history and volume of your business.

These documents are essential in evaluating your eligibility and the terms of your loan.

Get Started Today:

If you’re considering a Freddie Mac Small Balance Loan for a multifamily property, Innovative Mortgage is ready to assist you. We’ll leverage our expertise and lender relationships to secure optimal financing for your investment.

Contact us at Innovative Mortgage to begin the discussion about your Freddie Mac Small Balance Loan needs. Let us put our resources to work for you, ensuring a tailored, competitive loan for your real estate investment.

Pros of Small Balance Commercial Loans


Streamlined Process

Freddie Mac's small balance loans come with a streamlined process, making it easier for you to get funding.

Competitive Rates

Benefit from Freddie Mac's competitive rates, often lower than traditional banks.

Non-Recourse Loans

These loans are often non-recourse, limiting your personal liability.

Cons of Small Balance Commercial Loans


Prepayment Penalties

These loans may come with prepayment penalties, though they are often declining.

Regulatory Requirements

As with any government-backed loan, there are strict regulatory requirements to adhere to.

Key Issues That Will Get Early Attention

Navigating the Application Process
We'll guide you through the application process to ensure you have the best chance of success.
Understanding the Regulatory Landscape
Our experts will help you navigate Freddie Mac's regulations to ensure compliance.
Optimizing Your Loan Structure
We'll help you structure your loan to mitigate any potential prepayment penalties.
Maximizing Your Investment
With our support, you can rest assured you're making the most of your commercial real estate investment.