Freddie Mac shut down its Small Balance Loan Program in April after funding 17,000 loans worth $47 billion since 2015. The new Conventional Small product covers $2 million to $10 million for properties with 50 units or fewer, leaving owners needing under $2 million without a Freddie Mac option.
Now, here is the development that got very little attention and matters directly to owners in the 5 to 50 unit range. In April, Freddie Mac retired its Small Balance Loan Program and folded small balance lending into its conventional platform under a product called Conventional Small. Freddie says it is not stepping away from small loans, only consolidating them, and intends to stay active in this space. That program was significant. Since 2015, it financed more than 17,000 loans totaling over $47 billion. The new product runs from $2 million to $10 million on properties of 50 units or fewer. And there is the practical catch. The old Small Balance program started at $1 million. The new one starts at $2 million. So if your building needs a loan under $2 million, Freddie no longer has a product size for you. One of your 2 agency doors moved.
