Tap to get financing
Apartment Loans
Fannie Mae
Fannie MaeMultifamily Small Loan ProgramFannie Mae DUS Loans
Freddie Mac
Freddie MacSmall Balance LoansAffordable Housing Express Loans
FHA/HUD
HUD LEAN Loan ProcessingHUD 232/223(a)(7) Refinancing LoansHUD 232/223(f) LoansHUD 241(a) Supplemental LoansHUD 232 LoansHUD 223(a)(7) Refinancing LoanHUD 223(f) LoansHUD 221(d)(4) LoansHUD Apartment Loans
Non-agency
Life Company Apartment LoansHard Money Apartment LoansApartment Bridge LoansMezzanine FinancingSmall Apartment LoansBank LoansConstruction LoansCMBS Loans
Learn
BlogYield Maintenance CalculatorLoan Repayment CalculatorNOI CalculatorGross Rent Multiplier CalculatorDebt Service Coverage Ratio (DSCR) CalculatorDebt Yield CalculatorCash on Cash Return CalculatorCap Rate CalculatorBreak Even Ratio CalculatorApartment Mortgage CalculatorLoan To Value and Loan To Cost RatiosApartment Finance Due Diligence ResourcesHow to Purchase an Apartment Property
About us
TeamLeadership
(561) 556-9997 Get financing →
Newly Published
Nov 1 at Apartment Loans
What is Conduit Financing?
Sep 9 at Apartment Loans
Operating Expense Ratio Explained
Jul 1 at Apartment Loans
Real Estate Mutual Funds
Explore the Janover Network
May 22 at Multifamily Loans
Multifamily Minute Reader Reflections: What's the Most Important Part of Your Financing?
May 19 at SBA 7(a) Loans
Busting 5 SBA 7(a) Loan Myths
May 19 at SBA Express Loans
Top 5 Reasons to Get an SBA Express Loan in 2023
Was This Article Helpful?
Apartment Loans Secrets
Last updated on Feb 19, 2023
1 min read
by Content Team

How Does Regional Pricing Work for the Freddie Mac SBL Program?

In this article:
  1. Regional Pricing for Freddie Mac Small Balance Loans
  2. Northeast
  3. Southeast
  4. North Central
  5. South Central
  6. Western
  7. Related Questions
  8. Get Financing
Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank at 6.1%$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1.4M offered by a Credit Union at 6.1%Click Here to Get Quotes!

Regional Pricing for Freddie Mac Small Balance Loans

The Freddie Mac Optigo Small Balance Loan program recently changed the way interest rates are determined. In addition to each area being classified as a Top, Standard, Small, or Very Small Market, a new regional pricing system is used, with the U.S. being divided into 5 distinct regions.

Northeast

Delaware, Pennsylvania, New Jersey, New York, Rhode Island, Connecticut, Massachusetts, Vermont, New Hampshire, Maine

[table id=3 /]

Southeast

Arkansas, Louisiana, Mississippi, Tennessee, Alabama, Georgia, Florida, South Carolina, North Carolina, Virginia, West Virginia, Maryland

[table id=4 /]

North Central

North Dakota, South Dakota, Nebraska, Kansas, Missouri, Iowa, Minnesota, Wisconsin, Michigan, Illinois, Missouri, Indiana, Ohio, Kentucky

[table id=5 /]

South Central

Montana, Wyoming, Colorado, New Mexico, Texas, Oklahoma

[table id=6 /]

Western

Washington, Oregon, Idaho, California, Nevada, Utah, Arizona, Alaska

[table id=7 /]

Related Questions

What is the Freddie Mac SBL Program?

The Freddie Mac Small Balance Loan (SBL) Program is a loan program designed to assist small business owners in securing liquidity for their investments. It offers a platform dedicated to selling loans for smaller rental properties, with loans ranging from $1 million to $7.5 million. The program offers competitive pricing, less documentation, a streamlined underwriting process, and either hybrid ARM or fixed-rate loan products. Servicers and sellers must meet a specific set of guidelines, including collateral, undergoing a rigorous assessment, B-piece purchase, loss sharing, repurchasing of delinquent SBLs and origination of at least $50 million per quarter. For more information, please visit https://www.freddiemac.com/multifamily/product/pdf/small_balance_loan.pdf.

How does regional pricing work for the Freddie Mac SBL Program?

The Freddie Mac Small Balance Loan (SBL) Program offers regional pricing for loans in certain areas. Regional pricing is based on the location of the property and the loan amount. For example, the Southeast region includes Arkansas, Louisiana, Mississippi, Tennessee, Alabama, Georgia, Florida, South Carolina, North Carolina, Virginia, West Virginia, and Maryland. The South Central region includes Montana, Wyoming, Colorado, New Mexico, Texas, and Oklahoma. The Northeast region includes Delaware, Pennsylvania, New Jersey, New York, Rhode Island, Connecticut, Massachusetts, Vermont, New Hampshire, and Maine.

The pricing for each region is listed in the tables below.

Southeast Region:

Loan Amount Pricing
$1,000,000 - $2,499,999 +50 bps
$2,500,000 - $4,999,999 +25 bps
$5,000,000 - $7,499,999 +15 bps
$7,500,000 - $9,999,999 +10 bps
$10,000,000 - $14,999,999 +5 bps
$15,000,000+ +0 bps

South Central Region:

Loan Amount Pricing
$1,000,000 - $2,499,999 +25 bps
$2,500,000 - $4,999,999 +15 bps
$5,000,000 - $7,499,999 +10 bps
$7,500,000 - $9,999,999 +5 bps
$10,000,000 - $14,999,999 +0 bps
$15,000,000+ -5 bps

Northeast Region:

Loan Amount Pricing
$1,000,000 - $2,499,999 +25 bps
$2,500,000 - $4,999,999 +15 bps
$5,000,000 - $7,499,999 +10 bps
$7,500,000 - $9,999,999 +5 bps
$10,000,000 - $14,999

What are the benefits of the Freddie Mac SBL Program?

The Benefits and Disadvantages of Freddie Mac Small Balance Loans: Advantages of the Freddie Mac SBL Program

Advantages of the Freddie Mac Small Balance Loan program include:

  • Flexible loan sizes, starting at just $750,000 and going up to $7.5 million
  • Low interest rates, starting from just 4.51%
  • High leverage, up to 80% LTV
  • Generous DSCR minimums, as low as 1.20x
  • 30-year amortizations, keeping payments low for borrowers
  • Partial and full-term interest-only loans offered
  • Cash-out refinancing offered for eligible borrowers
  • Multiple fixed rate term options (with up to 10-year terms) and hybrid ARM options (with 20-year terms)
  • Soft step-down prepayment penalties allowed
  • 60-120 day rate commitments offered
  • Loans are fully assumable with 1% fee and Freddie Mac approval
  • Financing is non-recourse (with individual exceptions for certain loans)

What types of properties are eligible for the Freddie Mac SBL Program?

Eligible Property Types for the Freddie Mac SBL Program include multifamily and apartment properties with five or more units. This includes:

  • Properties with commercial space that does not comprise more than 25% of the property’s gross income
  • Independent living properties for seniors without resident services
  • LIHTC (Low Income Housing Tax Credits), with land restrictions in the extended use period or the final 24 months of the initial restriction period (to qualify, eligible LIHTC properties must have 75 units or less and get special Freddie Mac approval)
  • Other regulatory restrictions that limit income/rent (funds must be disbursed)
  • Tax abatement properties
  • Tenant-based housing voucher properties
  • Buildings can have local rent subsidies for 10% or less units, as long as tenant eligibility certification is not required
  • Cooperatives (must be located in New York City or Long Island)

In contrast, properties that are ineligible for the SBL program include:

  • LIHTC properties with more than 24 months left on their Land Use Restrictive Agreement
  • Tax-exempt bonds Interest Reduction Payments (IRPs)
  • Properties with a greater than 50% concentration of student or military housing
  • Properties with Section 8 contractors or other project-based HAP contracts
  • Master lease HTC (Historic Tax Credit) properties

What are the requirements for obtaining a loan through the Freddie Mac SBL Program?

In order to obtain a loan through the Freddie Mac SBL Program, you must meet certain servicer and seller requirements. These include collateral, undergoing a rigorous assessment, B-piece purchase, loss sharing, repurchasing of delinquent SBLs and origination of at least $50 million per quarter. Additionally, the minimum loan amount for a Freddie Mac SBL Link Loan is $2 million, regardless of the number of units. Compare this to the standard Freddie SBL minimum of $1 million.

In this article:
  1. Regional Pricing for Freddie Mac Small Balance Loans
  2. Northeast
  3. Southeast
  4. North Central
  5. South Central
  6. Western
  7. Related Questions
  8. Get Financing
Tags
  • Blog
  • freddie-mac-multifamily
  • freddie-mac-sbl
  • freddie-small-balance-loans
  • frequently-asked-questions
  • freddie-mac-optigo
  • freddie-mac-sbl
  • freddie-mac-small-balance-loans

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

Apartment Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487
(561) 556-9997 

hello@apartment.loans

Loan Types

Bank Loans
CMBS
Construction Loans
Fannie Mae
Freddie Mac
HUD/FHA Apartment Loans
Commercial Loan Rates

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2023 Janover Inc. All rights reserved.