How Top Freddie Mac Small Balance Loan Lenders Add Value
Arbor and Freddie Mac understood the crucial role of affordable and market-rate rental housing and the fragmented nature of its financing when we partnered to create the Small Balance Loan (SBL) program in 2014. Arbor is proud to have helped pioneer this loan product, which celebrated its 10th anniversary in 2024. As a six-time Top Optigo® Small Balance Loans Lender, Arbor has the right experience to expertly customize loan products to help you meet your financial goals.
What Is a Small Balance Loan?
Arbor’s Freddie Mac Small Balance Loan program is designed specifically for smaller multifamily properties, simplifying a borrower’s entire loan process. Ranging from $1 million to $7.5 million, SBLs feature highly competitive interest rates, allow borrowing of up to 80 percent of the property’s value, and offer the option of interest-only payments for part or all of the loan term.
Fixed loan terms are available for five, seven or 10 years. Eligible properties must have at least five residential units and can include those with tax abatements and certain commercial (non-residential) spaces. SBL is non-recourse, meaning investors are not required to personally guarantee the loan.
Advantages of Choosing Freddie Mac Small Balance Loans
Freddie Mac’s streamlined application process can help borrowers obtain financing quickly and efficiently. The SBL program is known for its flexible loan terms and structures that allow borrowers to choose the option that best fits their investment needs.
Other key advantages include:
- Typically, lower down payment options available
- Certainty of execution
- Non-recourse financing
The Arbor Small Loans Advantage
Small multifamily loan products have been one of our team’s specialties throughout our more than 30-year history. Every Arbor borrower receives the same professional and personalized treatment regardless of loan size, and when our team helped build the SBL program with Freddie Mac, we also recognized that borrowers of small loans are typically more local and more often entrepreneurs.
Arbor’s long-time partnership with Freddie Mac and deep understanding of agency requirements have been instrumental in making our team a top choice for small loan borrowers. Freddie Mac’s SBL program is part of its broader mission-driven lending initiative to close the affordable housing supply gap in the U.S., as nearly all small balance lending supports low-income renters.
When choosing Arbor’s SBL experts, borrowers also receive:
- In-house Servicing: Arbor handles all loan servicing internally, ensuring a consistent and high-quality personal relationship with borrowers throughout the loan lifecycle.
- Expert Underwriting: SBL loans are evaluated by industry experts with decades of experience and comprehensive knowledge of national markets.
- Non-Bank Advantage: As a non-bank lender, Arbor does not require deposits to secure a loan, distinguishing us from traditional banks and other non-bank lenders.
- Responsiveness: Borrowers quickly receive feedback and initial terms once they reach out to Arbor.
Choose an Experienced Small Balance Loans Lender
Freddie Mac’s continued recognition of Arbor as a Top Small Balance Loan Lender underscores our commitment to excellence. Choose a partner with experience and long-standing industry relationships who can guide you through each step of the process.
Contact Arbor today to discover how our loan programs can help you achieve your multifamily investment goals.
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