Fannie Mae Small Loans Cap Raised to $9 Million

Fannie Mae recently announced that its Small Loan cap has increased from $6 million to $9 million for all loans committed as of August 22, 2023. Multifamily borrowers and lenders have praised the change to the Fannie Mae Small Loans program, which will encourage greater investment in a rapidly growing sector where demand remains high despite market volatility.

Larger Loans Now Qualify for Attractive Terms

“By increasing the Small Loan limit to $9 million, Fannie Mae is expanding the solutions Arbor can offer our small balance borrowers by creating greater access to a reliable and flexible source of capital for the underserved small balance loan market,” said Peter Reisert, Managing Director, Capital Markets, Agency Lending.

Arbor’s Small Loans program offers fixed- and variable-rate financing to multifamily properties nationwide. We streamline the entire loan process for multifamily acquisition and refinancing loans ranging from $750,000 to the newly announced $9 million cap.

Fannie Mae offers reduced documentation requirements, streamlined report formats, and flexible legal/closing requirements for Small Loans.

Other benefits to borrowers include:

• Flexible terms
• Competitive interest rates with fixed- and variable-rate financing
• Supplemental financing
• Pre-payment flexibility
• Low cost and certainty of execution

Fannie Mae Small Loans are specifically designed to finance smaller rental properties, including affordable and workforce housing in urban areas. Eligible properties must have a minimum of five units. Like other Fannie Mae multifamily products, Small Loan structures are fully customizable to meet investors’ needs.

Arbor is a Perennial Top Fannie Mae Small Loans Lender

Arbor was recognized as a Top 2 Fannie Mae Small Loan Lender in 2022 and has consistently been a Top 5 Small Loan lender during the past decade. We played an integral role in developing the Small Balance Loan product in 2014, and our longtime partnership with Fannie Mae, including in other areas such as technology, has helped us create the best possible solutions for our borrowers that help them meet their investment goals.

Contact us today to learn how Arbor’s top-ranked team can help you take advantage of the benefits of the Fannie Mae Small Loans program.

Interested in the multifamily real estate investment market? Contact Arbor today to learn about our array of multifamily, single-family rental, and affordable housing financing options and view our other market research and multifamily posts in our research section.