In accordance with the Equitable Housing Finance Plan and our efforts to advance equitable housing opportunities, we are excited to announce adjustments to our Small Balance Loan (SBL) Link Loan requirements that will help improve access to financing for affordable rental housing.

Effective November 1, Freddie Mac Multifamily has expanded the qualifications for an SBL Link Loan to now include 2- to 4-unit non-contiguous properties, as long as the conditions below are met:

  • Single appraisal
  • Single Property Condition Assessment
  • Minimum loan amount of $2 million
  • Minimum of 10 total units
  • Aggregate property financials for underwriting
  • Compliance with the Loan Agreement section 6.07 Books and Records; Financial Reporting
  • Buildings are within 3 miles of any other building included in the loan (exception up to 5 miles may be considered)
  • Same property manager
  • Buildings are in the same county
  • No owner-occupied units
  • Non-contiguous single-unit buildings are not allowed

Previously, our Link Loan offering only included 2- to 4-unit buildings located on contiguous parcels. However, we were missing the opportunity to serve multifamily properties that may not be located on adjacent tax parcels but are within close proximity to each other and are operated as one project.

By extending financing to this corner of the market, we’re increasing opportunities for smaller borrowers to grow their portfolio, support underserved communities and provide more affordable housing options for renters — all while ensuring consistent property management under the SBL program.

We have updated our SBL term sheet and Link Eligibility Map, as well as additional resources on our Originate & Underwriting webpage to help you get started on an SBL Link Loan today. If you have any questions, please reach out to your Freddie Mac Multifamily SBL representative for more information.

We appreciate your partnership and look forward to joining you in providing a reliable source of financing for this underserved market.