Small Balance Loans

Small Balance Freddie Mac Loans range from $1 to $5 million and are used for acquisition or refinance of up to 80% Loan-to-Value. The programs are available as 20-year hybrid ARM’s with initial 5, 7, or 10 years fixed, or as 5, 7, and 10 years fixed terms to balloon. Both programs are available with partial and full-term interest-only. This is a non-recourse loan meaning the borrower is not personally liable and therefore tax returns are not required to qualify. The loan is amortized over 30 years, assumable and the asset must be 90% occupied for at least 90 days at application. Cash-flow is analyzed by dividing the net operating income by the proposed payment. There are minimum provisions for net worth, liquidity and real estate management experience needed to qualify.

Lending Criteria Description
  • Purchase and Refinance
  • Nationwide
Eligible Borrower:
  • Individual
  • Corps/LLC’s
  • Special Purposes Entities
  • Trusts with Warm Body Guarantor
Property Type:
  • Apartment Buildings
  • Co-ops
Max Loan-to-Value:
  • Purchase:  80%
  • Refinance:  80%
  • Cash-out:  80%
Minimum Credit Score:
  • 650
Prepayment Penalty:
  • Step-Down
  • Yield Maintenance
Maximum Debt-Service-Ratio (DSR):
  • 1.20%
  • No – Standard Carve Outs
Broker Fee:
  • 1 point
  • 20-Years
  • 5 / 7 / 10-Years Fixed/Adjustable &
  • 5 / 7 / 10-Years Fixed
Interest Only:
  • Available at below 65% LTV
Loan Amounts:
  • $1,000,000 $5,000,000
Closing Timeframes:
  • 60 days
  • 30-Years
  • 1st Trust Deeds
  • Required for Tax & Insurance when loan is above 65% Loan-to-Value
Other Costs:
  • All 3rd Party Fees
This information is NOT a loan approval or commitment to lend. The actual loan amount, interest rate, fees, costs and monthly payment on your specific loan transaction can vary and will depend on your choice of loan product and your unique credit profile. Loans (in CA) will be made pursuant to BRE License #02001852. Loan Brook, Inc. is an equal opportunity lender.