Freddie Mac SBL Multifamily Loans

Freddie Mac SBL Loan Rates - Rates updated February 24th, 2024
Freddie Mac Multifamily Loan Rates Rates (start as low as) LTV
5 Year Fixed Rates 6.52% Up to 80% Get Free Quote
7 Year Fixed Rates 6.46% Up to 80% Get Free Quote
10 Year Fixed Rates 6.43% Up to 80% Get Free Quote

Our Freddie Mac SBL Loan Benefits

Multifamily Loan rates start as low as 6.43% (as of February 24th, 2024)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Financing up to 80% LTV
• Terms and amortizations up to 30 years
• Long term fixed rates
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation

Freddie Mac SBL Freddie Mac SBL

Freddie Mac SBL

The Freddie Mac SBL multifamily loan program offers many unique and beneficial features for apartment purchases and refinances, with a minimum loan size of $1,500,000. 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.

Freddie Mac is one of the biggest sources of multifamily loans in the country. In October 2014, they announced the addition of their Small Balance Program (SBL) apartment financing. The SBL program finances loans between $1,500,000 and $7.5 million ($6 million in smaller markets). Freddie Mac purchases loans from lenders and securitizes pools of over $400 million. Since their inception, they have funded over 10,385 loans totaling over $27 billion in volume.

Freddie Mac SBL Highlights:


Freddie Mac SBL offers multiple different loan term options. You can pursue a standard 5, 7 or 10 year fixed rate balloon mortgage. Additionally, they offer 20 year hybrid products with an initial fixed period of 5, 7 or 10 years followed by six-month floating-rate reset periods based on the LIBOR. They offer partial or full term interest only periods as well.


The SBL program offers amortization periods of up to 30 years.

Interest Rates:

While interest rates vary across properties, locations and loan amounts, they tend to be lower for apartment buildings in Top and Standard Markets and higher for those in Small and Very Small Markets

Market Tiers:

  • Top Markets: These include many counties within the following MSA’s: Boston, Chicago, Denver, Los Angeles, Miami, Minneapolis, New York, Portland, San Diego, San Francisco, San Jose, Seattle, Stamford and Washington D.C.
  • Standard Markets: These typically include markets with a rental population of greater than 60,000 people.
  • Small Markets: These usually include markets with rental populations between 30,000 and 60,000 people.
  • Very Small Markets: These include markets with rental population of under 30,000 people.


Freddie Mac SBL will finance up of 80% LTV of the property. Additionally, their loans are subject to a minimum DSCR of 1.25x for Standard Markets and 1.20x for Top Markets. Their full-term interest-only loans are subject to a maximum LTV of 65% and a minimum DSCR of 1.35x.  


The Freddie Mac SBL lends to limited liability companies, limited partnerships, single asset entities, special purpose entities, tenancy in common, corporations, multiple asset entities, trusts with a warm body guarantor and individuals who are U.S. citizens.

Underwriting Guidelines:

  • Effective gross income is calculated based on either trailing three-months of actual rent collections or by annualizing the current rent roll. A 5% vacancy rate is utilized subject to current market data.
  • Typically, operating expenses are calculated based on the T-12 statement.
  • Property values will ultimately be based on the third-party appraisal.
  • A sum of $200-$300 per unit will be escrowed for replacement reserves range. This number is based on the property condition rating and the observations from the property inspection.
  • For loans over 65% LTV, tax escrows are required.

Prepayment Penalties:

Prepayment on Freddie Mac SBL loans vary by term but both yield maintenance and step-down are offered.

Property Type:

The SBL program will finance multifamily properties with 5 or more units. They accept section 8 vouchers/ tax abatements and properties may include commercial income. They will not finance seniors housing, student housing (if the student occupancy is over 50% of the tenant base) and properties with land use restriction agreements or low-income housing tax credit. While there are many options for those looking for apartment loans, the Freddie Mac SBL program can often provide some of the best terms in the market. If you are looking for a Freddie Mac multifamily loan, commercial mortgage or an apartment loan and want to know if the Freddie Mac SBL program is right for you, please do not hesitate to reach out to the professionals at Select Commercial. You can reach us at 877-548-9454. For a quick quote, click the button below! Get a free loan quote today!

The Freddie Mac SBL program offers a combination of benefits and features not available anywhere else.  Whether your objective is to buy additional property, get a lower rate on an existing loan, or take cash out of an existing property, Freddie Mac has the strength and expertise to get you to the closing table faster than most other lenders.

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