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Fannie Mae Pushes Major Small Loan Changes
The Small Loan program now has a significantly higher loan maximum and relaxed requirements on how ‘local’ an investor needs to be.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!Fannie Mae made two big changes to its highly regarded Small Loan program: Effective for loans committed as of August 22, 2023, the maximum financing amount isn’t $6 million any longer.
Now? It’s $9 million.
Fannie didn’t stop there, though. They’ve also overhauled their requirements relating to how close an investor needs to live to the apartment building.
The program used to require that the borrower — or at least one of the key principals — live within 100 miles of the apartment building. As of August 22, that’s now expanded to 200 miles.
What's Possible Because of the Changes?
Lots. Look, it may not matter if you’re an investor in Chicago buying a property in Boca Raton, but the 100-mile limit had excluded many borrowers in the past.
Today, a Dallas-based investor can use a Fannie Small Loan to buy a property in Austin. The Delaware-based owner of a property in Fairfax, Virginia, can refinance with a Fannie Small. That wasn’t even close to possible last week.
Not sure how Fannie Mae’s Small Loan program stacks up? Check out the latest rates below, but the long and short of it is that it offers non-recourse financing at advantageous terms for financing anywhere from $1 million to $9 million.
Curious how this could work for your next deal? Drop your details in the form below. Our loan advisors will get in touch with thousands of lenders to find the right fit — whether it’s with Fannie or through another program entirely.