Freddie Mac Small Loan Program (updated April 2026):

Loan Amount:  $2 million to $10 million in all markets.

• Loan Purpose: Acquisition or refinance
• Loan Terms:  5, 7, 10, 12 or 15-year terms.

Amortization: Up to 30 years

Interest Only see below: 

Lock-out Period: 2-years following securitiation

Prepayments: Standard prepayment provision is yield maintenance until securitized followed by 2-year lock-out; defeasance thereafter. No
prepayment premium for final 90 days. If loan is not securitized within first year, then yield maintenance applies until the final
90 days. Step-down and yield maintenance without defeasance are available at an additional cost.

Eligible Borrowers/Borrowing Entities:

• Guarantor Requirements:
  • Minimum $5 million combined net worth.
  • Liquidity equal to or greater than 100% of annual debt service or 10% of the loan amount.
  • 680 or higher FICO
• Borrower may be a limited partnership, corporation, limited liability company or a tenancy in common (TIC) with 5 or
  fewer tenants in common.
• General partnerships, limited liability partnerships, real estate investment trusts (REITs) and certain trusts may also be
  acceptable in limited circumstances, subject to additional requirements.
• Borrower must be a Single Purpose Entity (see the Single Purpose Entity Borrower Rider to Loan Agreement Loans
  $20,000,000 and Under) for basic SPE requirements).

Eligible Properties: Standard multifamily housing, with exclusions for student properties, seniors housing, manufactured housing communities,
and cooperative housing. Loans may be used for acquisition or refinance. Hard subordinate debt is not permitted.

Recourse Non-recourse with standard carve-out provisions required.

Subordinate debt: Not Permitted

Occupancy:      Property must be stabilized at:

1. 90% physical occupancy for the trailing 3-month average prior to underwriting or
2. 85% physical occupancy for the trailing 3-month average prior to Underwriting.

• Acquisition with all of the following:
  • Sophisticated acquiring sponsorship and  management relative to current ownership.
  • Appraised occupancy and/or rents materially higher than subject’s current operations.
  • Subject property has not experienced volatile historical occupancy swings.
  • No history of serious crime at the subject property.

Escrows:

• Real estate tax escrow generally required.
• Insurance generally required.
• Replacement reserve generally required.

Rate-Lock: Spread lock for 60 days post-loan application. Index Lock option may be available for sponsors and properties that qualify.

Conventional and Small Maxium LTV and Minium DSCR: 

• Less than or equal to 5- and 7-year Term: DSCR 1.25x, Max LTV 75% – Full Term Interest Only: 1.25x and Max LTV 65%
• 7-year Term: DSCR 1.25x, Max LTV 80%. Full Term Interest Only: 1.25x and Max LTV 65%
• greater than 7-year Term DSCR 1.25x, Max LTV 80%. Full Term Interest Only: 1.25x and Max LTV 70%