Fannie Mae & Freddie Mac - Multifamily Financing

[Ian Stuart]

In 2024 - Berkadia was the #1 Freddie Mac Optigo & #2 Fannie Mae DUS multifamily lender in the United States, closing ~$13.45 billion dollars of multifamily loan volume on behalf of our capital partners at Freddie Mac & Fannie Mae. 

Freddie Mac & Fannie Mae both offer "Small Balance" multifamily permanent loan programs ranging between $1,000,000 and $9,000,000 for multifamily apartment complexes with well-capitalized, experienced borrowers located nationwide. 

Below are summaries of each program. Please send me a DM for more information. 

FREDDIE MAC SMALL BALANCE LOAN (SBL) - MULTIFAMILY 

Loan Purpose: Permanent Financing (Refi & Acquisition)

Loan Proceeds: $1,000,000 - $7,500,000

Loan Sizing: 70-80% LTV; 1.20x-1.40x DCR; 30-Year Amortization

Loan Term: 5-10 Year Term (Fixed), 10 or 20 Years (Hybrid ARM)

Interest Only: Partial-Full Term IO Available

Rate Types: 5-10 Year Fixed Rate & 10-20 Year Hybrid ARM Rate

Rates: High 5.00%'s - Low 6.00%'s

Rate Lock: Rate Lock @ Application

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

Loan Guarantor Financial Strength: Liquid Assets >=9 Months P&I, Net Worth >= Loan Amount, FICO >=680

Multifamily Experience Requirement: 3 Properties Owned >=2 Years, or 1 Property Owned >=5 Years

FANNIE MAE SMALL LOAN – MULTIFAMILY

Loan Purpose: Permanent Financing (Refi & 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

Interest Only: Partial-Full Term IO Available

Rate Type: Fixed Rate

Rate Lock: Rate Lock @ Loan Commitment

Rate Structure: Treasury Yield + Spread

Rate: High 5.00%'s - Low 6.00%'s

Non-Recourse: Non-Recourse w/ “Bad Boy” Carveouts

Prepayment: Yield Maintenance; 3 Mos Open @ 1.0%; 3 Mos Open @ Par (Default)

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