Commercial Real Estate Division

Commercial Real Estate - Freddie mac

Freddie Mac Multifamily Small Loan Program Guidelines:

Eligible Properties:

  • 5+ unit multifamily. A and B class assets with C class assets considered on a deal by deal basis. No restricted markets; however, eligibility may vary for sub markets considered as being higher risk. Non-contiguous properties are acceptable if they are being operated as one and each property meets the minimum LTV, DSCR and occupancy requirements.

Ineligible Properties:

  • Properties with a HAP contract or LURA are eligible on a deal by deal basis. Section 8 voucher acceptable. Properties with a specific tenant concentration (e.g. students, military) greater than 40%.

Loan Size:

  • $1,000,000 - $6,000,000. With Freddie Mac approval, loans between $6MM and $7.5MM are available in Top and Standard Markets, provided they meet the following additional criteria:

    • ​75 units or less

    • 1.25 minimum DSCR

    • Single Asset Entity (SAE) borrower with enhanced borrower covenants and quarterly reporting

    • Enhanced third reports, e.g. full appraisal, zoning report, survey

Maximum Loan-to-Value:

  • ​​80% LTV.

Maximum CLTV:

  • 100% is possible with Joint Venture

Eligible Locations:

  • All 50 states, Puerto Rico, U.S. Virgin Islands, and Guam.

Fixed Rate Term:

  • 5, 7 and 10 years

  • Interest Only Available


  • 30 years. 

Minimum DSCR:

  • 1.25. 1.20 in Major Markets.

Prepayment Penalty:

  • 5 year fixed term: 5,4,3,2,1. Can be reduced with rate increase.

  • 7 year fixed term: 5,5,4,4,3,2,1. Can be reduced with rate increase.

  • 10 year fixed term: 5,5,4,4,3,3,2,2,1,1. Can be reduced with rate increase.


  • Non-recourse for most loans subject to standard carve-outs.


  • Yes, subject to lender approval.


  • Tax and insurance required on higher leveraged loans.

Third Party Reports:

  • Appraisal, Market Study, Phase I Environmental, Engineering Report and Seismic where applicable.  

Sponsor Requirements:

  • 650 minimum credit score

  • Collective net worth of key principals must exceed loan amount

  • Minimum liquidity of nine months debt service

  • Local ownership no prior multifamily experience required

  • Absentee ownership requires two years comparable multifamily ownership experience


 Synergy Capital Markets

9453 De Soto Avenue

Suite M

Chatsworth, California 91311


Synergy Capital Markets, is an institutional alternative real estate finance investment adviser, investor and underwriter. Synergy Capital Markets does not offer, and does not offer to provide any broker dealer or market maker services. Synergy Capital Markets operates this website at (referred to as the “Website”). By accessing this Website and any pages thereof, you agree to be bound by its Terms of Use and Privacy Policy. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. We do not provide financial planning services to individual investors. Synergy Capital Markets does not provide tax advice and does not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this Website, and are encouraged to consult with their own financial advisor, attorney, accountant, and any other professional that can help you / them to understand and assess the risks associated with any real estate investment opportunity. Full Disclosure

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