Spotlight on Freddie Mac Small Balance Loan
Currently, the SBL program is offering a limited-time discount on affordable properties. This discount will reduce 5-year fixed or hybrid rates by 25 basis points in top and standard markets. Fixed or hybrid rates for 7- and 10-year financing are reduced by 50 basis points in standard and small markets.
The program was introduced to the market by Freddie Mac in October 2014, and has quickly grown in popularity for owners of multifamily properties with 5 to 150 units. Freddie designed the SBL program to address the unique process and liquidity challenges often faced by borrowers in the sub $5 million financing space. The program offers acquisition financing and refinancing, using fixed-rate, or hybrid ARM products, with partial or full-term interest-only.