Spotlight on Fannie Mae Small Balance Loan
Fannie Mae’s Small Loan platform began in 1985 through the purchase of pools of small multifamily loans. The program is based upon loan amounts up to $3 million nationwide or up to $5 million in high-costs markets such as New York, Los Angeles, and Washington, D.C. The program offers acquisition financing and refinancing with fixed and hybrid ARM programs. Fannie Mae continues to provide liquidity for small loan properties controlled by experienced borrowers seeking long-term, fixed-rate financing.
As the year dwindles, Fannie Mae is emphasizing properties with affordable/workforce housing as these loans are not counted toward agency lending caps. With more than 25 years of experience in small multifamily lending, Fannie Mae plans to maintain this leadership role and remain active in the Small Balance Loan segment.