Freddie Mac SBL Multifamily Loans (Conventional Small Program)
Last updated: May 14th, 2026
Freddie Mac SBL Multifamily Rates - Updated 5/14/26
| Freddie Mac Small Balance Multifamily Rates | Free Loan Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Multifamily 5 Year Fixed Loan Rates | 5.73% | Up to 80% | |
| Multifamily 7 Year Fixed Loan Rates | 5.73% | Up to 80% | |
| Multifamily 10 Year Fixed Loan Rates | 5.93% | Up to 80% | |
| Multifamily 12 Year Fixed Loan Rates | 6.00% | Up to 80% | |
| Multifamily 15 Year Fixed Loan Rates | 6.00% | Up to 80% | |
Our Freddie Mac SBL Loan Benefits
Multifamily Loan rates start as low as 5.73%
(as of May 14th, 2026)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees charged by Select Commercial
• Streamlined application process integrated with Freddie Mac's Conventional platform
• Financing up to 80% LTV
• Fixed-rate terms of 5, 7, 10, 12, or 15 years
• Loans for purchase and refinance, including cash-out
• Access to Freddie Mac's Index Lock advantage for eligible borrowers
• 24-hour written pre-approvals with no cost and no obligation
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Freddie Mac SBL Program Overview
Freddie Mac's small balance multifamily lending program, commonly known as SBL and formally renamed Conventional Small in April 2026, provides competitive financing for multifamily and apartment properties from $2 million to $10 million. The program is integrated into Freddie Mac's core Conventional lending platform and offers non-recourse loans, up to 80% LTV, fixed-rate terms of 5 to 15 years, and a streamlined two-report process designed to keep closing costs low for smaller deals.
Since launching its small loan program in 2015, Freddie Mac has financed more than $47 billion across over 17,000 loans, making it one of the largest sources of small balance multifamily financing in the country. The Conventional Small rename continues Freddie Mac's longstanding mission of providing liquidity and affordability to the smaller end of the multifamily market, including workforce housing.
SBL loans are non-recourse with standard bad-boy carve-outs, meaning borrowers are not required to personally guarantee loan payments. The minimum loan size is $2,000,000.
Loan Amount
The Freddie Mac SBL program (Conventional Small) finances loans from $2,000,000 to $10,000,000 nationwide, with prioritization for Low Income (LI) properties with 5 to 50 units.
Loan Terms
Borrowers can choose from fixed-rate terms of 5, 7, 10, 12, or 15 years. The 12 and 15 year options were added with the April 2026 Conventional Small rename, providing additional flexibility for borrowers seeking extended rate certainty beyond the prior 5, 7, and 10 year SBL term options.
Interest Rate and Rate Lock
Rates are priced as US Treasury + Spread. A 60-day spread lock is available post loan application. An Index Lock may be available for qualifying sponsors and properties, providing additional certainty of execution during the loan process.
LTV and DSCR
The baseline maximum LTV is 80% with a minimum DSCR (Debt Service Coverage Ratio) of 1.25x. Individual transactions are quoted on a deal-by-deal basis. Full-term interest-only loans require a minimum DSCR of 1.25x and a maximum LTV of 65% to 70% depending on loan term. Partial-term interest-only is available for loans with LTV below 70%.
Amortization
The Freddie Mac SBL program offers amortization periods of up to 30 years.
Borrowing Entity and Guarantor Requirements
A Special Purpose Entity (SPE) is required for all SBL borrowers. Guarantors must meet a minimum net worth of $5,000,000 and minimum liquidity equal to the greater of 100% of annual debt service or 10% of the total loan amount.
Prepayment
The standard SBL prepayment provision is yield maintenance until the loan is securitized, followed by a 2-year lock-out period and defeasance thereafter. No prepayment premiums apply during the final 90 days. Step-down and yield maintenance without defeasance are available at an additional cost. If the loan is not securitized within the first year, yield maintenance applies until the final 90 days.
Third-Party Reports
The program requires an MAI appraisal and a Physical Risk Report (a limited-form Property Condition Assessment and Phase 1 Environmental combined). This streamlined two-report approach helps keep SBL closing costs lower than traditional agency programs.
Reserves and Escrows
Replacement reserves are generally required at a minimum of $250 per unit, with higher amounts based on the engineer's report. Both tax and insurance escrows are generally required.
Servicing
Freddie Mac SBL loans are serviced by a designated Freddie Mac servicer for the life of the loan. Annual property inspections and quarterly reporting are required.
Application Fee
Freddie Mac charges an application fee of 0.10% of the loan amount.
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!
Frequently Asked Questions About Freddie Mac SBL Loans
The Freddie Mac SBL (Small Balance Loan) program provides multifamily financing for smaller apartment loans. Effective April 15, 2026, Freddie Mac formally renamed the program to Conventional Small and integrated it into its core Conventional lending platform. Most lenders, brokers, and borrowers continue to refer to the program as SBL.
The program finances loans from $2,000,000 to $10,000,000 nationwide.
Borrowers can select fixed-rate terms of 5, 7, 10, 12, or 15 years. Amortization is available up to 30 years.
Yes. Freddie Mac SBL loans are non-recourse to the borrower, subject to standard bad-boy carve-outs.
Up to 80% LTV on a deal-by-deal basis. Full-term interest-only loans are capped at 65% to 70% LTV depending on the loan term.
The baseline minimum debt service coverage ratio is 1.25x. Full-term interest-only loans require a minimum DSCR of 1.25x. See our guide on how to calculate DSCR for more detail.
Guarantors must meet a minimum net worth of $5,000,000 and minimum liquidity equal to the greater of 100% of annual debt service or 10% of the total loan amount. A Special Purpose Entity (SPE) is required as the borrowing entity.
Freddie Mac charges an application fee of 0.10% of the loan amount.
The Freddie Mac SBL (Conventional Small) program offers a combination of benefits and features for small multifamily borrowers nationwide. 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.
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