Darron Kattan of Franklin Street Darron Kattan of Franklin Street

ATLANTA—Fannie Mae and Freddie Mac’s small balance loan program has hit a stride over the past year. The program was designed to target areas of the marketplace that lacked liquidity options and focuses on multifamily deals with a mortgage balance from $1 to $5 million.

A combination of non-recourse, higher leverage points—up to 80%—and attractive rates have made the program a hit with buyers. Some capital markets watchers say the small balance loan program is the best financing option for multifamily private investors and the market has appreciated significantly for multifamily since the program’s inception.

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