Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Fannie Mae Program
Fannie Mae Small Balance Multifamily Loan
The Fannie Mae Small Balance Multifamily Loan is one of the Fannie Mae multifamily programs Select Commercial arranges nationwide. Its highlights and terms are below, and you can compare it on our Fannie Mae multifamily page or view today’s commercial mortgage rates.
Get a Free QuoteAbout the Small Balance Multifamily Loan
The Fannie Mae Small Balance program provides mortgage capital for conventional, affordable, cooperative, senior, student and manufactured housing nationwide, with long-term fixed rates up to 30 years, up to 80% LTV and non-recourse financing. It offers first-lien permanent financing for the acquisition or refinance (including cash-out) of multifamily properties from $1,500,000 to $6,000,000.
Program Highlights & Terms
- Description: Simplified approval for long-term fixed-rate financing on apartments, manufactured housing, mobile home parks and cooperative apartments
- Loan Amount: $1,500,000 to $6,000,000+ (larger balances via the DUS platform)
- Loan Terms: Fixed rates for 5, 7, 10, 12, 15, 20 and 30 years
- Amortization: Up to 30 years, based on age and condition of the property
- Maximum LTV: Up to 80% for purchases and 75% for refinances
- Minimum DSCR: 1.25x
- Prepayment: Yield maintenance and step-down options
- Subordinate Financing: Supplemental mortgages available after the first 12 months or on loan assumption
- Occupancy: Typically 90% for the previous 3 months
- Assumability: Assumable with the lender's consent
- Escrows: Taxes and insurance escrows may be waived on lower-LTV loans; replacement reserves per appraisal and engineering reports
- Net Worth & Liquidity: Requirements must be met
- Rate Lock: After commitment; early rate lock option available
- Recourse: Non-recourse with standard carve-outs
- Timing: 45 to 60 days from complete application to closing
Terms are indicative and set by Fannie Mae underwriting for your specific property.
What Our Clients Say
“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“I found selectcommercial.com and saw they specialized in apartment building loans. In the end, they were by far the best company I have used. Next time I know who to call first.”
Jerry T. · Long Island, NY“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York CityGet Your Fannie Mae Quote
No cost, no obligation. Written answers within 48 hours on multifamily loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up