Freddie Mac Apartment Loan Program - Small Balance

Freddie Mac is another nationwide source of mortgage capital for apartment building financing. The Freddie Mac small balance apartment loan program offers many unique and beneficial features for apartment purchases and refinances, with a minimum loan size of $1,000,000. The loan application process is simple and streamlined. As an example, tax returns for the borrower and the property are not required. Loans typically close in 45 days and the program has much lower costs than other government or agency programs. Loans are non-recourse, which means that the borrower is not required to guarantee payments personally. Prepayment penalties are flexible, ranging from yield maintenance to soft stepdown. Perhaps the best feature is that Freddie Mac offers a free rate hold for 45 days from application. If rates change during the processing period, the loan rate is automatically held from the date of application.

Loan Amount

$1,000,000 - $6,000,000, up to $7,500,000 in top markets

Loan Purpose

Purchase or refinance, including cash out refinances


Up to 30 years

Property Types

Apartment buildings of 5+ units

Debt Service Coverage

1.20x in top markets, 1.25x nationwide

Maximum Loan to Value




Credit Score

Minimum of 650

Interest Only

Interest only loans are available


Minimum occupancy of 90% for 90 days


Escrows for taxes and insurance may be waived

Replacement Reserves

Not usually required

Rate Lock Deposit

1% at rate lock, refundable at closing


Annual and lifetime caps on all adjustments



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