Best Small-Balance Multifamily Lenders for 2026 Best Small-Balance Multifamily Lenders for 2026

By Multi-Family USA Editorial Team · Published 2026-10-07 · Updated 2026-10-07 · 10 min read

Small-balance multifamily loans usually mean $1M to $10M on a property with five or more units. Two agency programs dominate the stabilized end of this range, and a few private lenders cover bridge and term loans where the agencies do not fit. This page groups lenders by that split. It is not a ranking.

Methodology: what we looked at

• Program availability. Whether the lender, or Freddie Mac, describes a program for multifamily properties with five or more units on its own site or in its own directory.
• Published terms. Loan size, term, leverage, DSCR and recourse, but only where the lender or agency states them. Where a figure is not published we write “not published” rather than estimate it.
• Loan size range. The minimum and maximum each lender publishes. Many publish neither.
• Geography. Nationwide, or the limits a lender states.

What we did not do. We did not rank lenders, collect or show rates, test service or closing speed, or receive lender-supplied data. Groups are by fit, not by quality. Terms change, so confirm everything with the lender.

Sources and date. Lender program pages, term sheets, Freddie Mac’s Optigo directory and term sheets, and HUD’s program descriptions, all read in October 2026. Each row below links to its source.

The two agency small-loan programs

Fannie Mae Small Loans. Per Lument’s term sheet dated 6.22.26: up to $9 million nationwide, 5-30 year terms, up to 30-year amortization, 80% LTV, 1.25x DSCR, existing stabilized properties with five or more units (conventional, affordable, market-rate co-op and manufactured housing communities), non-recourse with standard carve-outs. Walker & Dunlop’s small-balance page shows loans starting at $1M.

Freddie Mac Optigo Conventional Small. Per Freddie Mac’s April 2026 term sheet: generally $2M-$10M on predominantly market-rate properties of 5 to 50 units; 5, 7, 10, 12 or 15-year terms; maximum 30-year amortization; maximum LTV of 75-80% amortizing (65-70% for full-term interest-only) at a 1.25x minimum amortizing DCR; non-recourse except standard carve-outs; 0.1% application fee. Student, seniors, manufactured housing and cooperative properties are excluded. It replaced the former Small Balance Loan program on April 15, 2026 (Walker & Dunlop’s summary), so older pages that still say “SBL up to $7.5M” are out of date.

Because Freddie’s floor is $2M and Fannie’s can be $1M, the programs are not interchangeable. A $1.5M deal points to Fannie; a $9M deal can go either way.

For a step-by-step walk-through, see how to finance a 5-10 unit apartment building. Operators building a small portfolio can read the small portfolio operator playbook.

Lenders grouped by fit

Agency small-loan lenders

These lenders describe Fannie Mae Small Loans, Freddie Mac small-balance lending, or both on their own pages.

• Walker & Dunlop: Fannie Mae Small Loans; Freddie Mac Optigo. Fully stabilized conventional 5+ unit properties nationwide; manufactured housing communities also eligible. Fannie terms shown: 5-30 years, 80% LTV, non-recourse. The page does not describe Conventional Small, which replaced Freddie’s retired SBL, so confirm Freddie small-loan terms with the lender.
• Arbor: Fannie Mae Small Loan; Freddie Mac Conventional Small. Describes itself as a leading small multifamily lender with closings across several states. Terms, leverage and recourse are not published on the page.
• Berkadia: Fannie Mae Small Loans; Freddie Mac programs. Fannie: up to 30-year fixed, 1.25x minimum DSCR with exceptions. 5+ units, including seniors, manufactured housing and properties with commercial space. Nationwide, non-recourse with standard carve-outs. Its Freddie text still describes the retired SBL; Freddie’s current product is Optigo Conventional Small.
• Lument: Fannie Mae Small Loan; Freddie Mac Conventional Small. Term sheet dated 6.22.26: 5-30 year terms, up to 30-year amortization, 80% LTV, 1.25x DSCR, existing stabilized properties with 5+ units. Non-recourse with standard carve-outs.
• Greystone: Fannie Mae Small Mortgage Loans; Freddie Mac small balance. Its Fannie page lists Small Mortgage Loans and its Freddie page lists small balance among its solutions. Nationwide.

Private small-balance lenders

For deals the agencies do not fit: bridge, light value-add, or properties outside agency eligibility. Geography and recourse are tighter, so check them first.

• Lima One Capital: Small-Balance Term Loan; stabilized and value-add bridge. Term loan: 5+ units, up to 75% LTV, 5-, 7- and 10-year hybrids, 1.20-1.25x DSCR, from 80% occupancy. Bridge: its FAQ says 10+ units, while its Stabilized Bridge highlights say no unit limit, so confirm. Does not lend in Alaska, North Dakota, South Dakota or Vermont.
• Civic Financial Services: Multifamily Bridge. 5+ units, 18-24 month term plus two 6-month extensions, up to 80% LTC. Full recourse, 725 minimum FICO, select East Coast markets only.

Comparison table

“Not published” means the lender’s own page or term sheet does not state it. Figures are as published in October 2026 and can change.

Where Multi-Family USA fits

Multi-Family USA is a lender-matching option, not a lender. We review a 5+ unit deal and route it to lenders like the ones on this page. We do not originate, underwrite or fund loans, and we are not a mortgage lender. This page is published by Multi-Family USA, so treat our own listing with the same caution you would apply to any self-published list.

Next steps: send your deal for a lender-fit review, check market context on the rates page, or browse all guides.

Choosing within the $1M-$10M range

Start with the property: stabilized and 5+ units points to the agency programs; under 10 units or in need of renovation may point to a private bridge or term loan. Then check loan size against each program’s floor, and test coverage with the loan sizing and commercial DSCR calculators before you ask for quotes. See also the agency vs bridge execution guide.

Notes and limits

• Community banks and credit unions also write many sub-$10M apartment loans, but they rarely publish program terms, so we cannot verify them here. Ask local lenders directly.
• Berkadia’s small-loans page still describes the retired Freddie Mac SBL program (up to $7.5M), and Walker & Dunlop’s small-balance page does not describe Conventional Small. Freddie’s current product is Optigo Conventional Small; confirm its availability with each lender.

Keep reading

Back to the hub: best multifamily lenders 2026.

Other lender guides in this set:

• Best Multifamily Bridge Lenders for 2026
• Best HUD/FHA Multifamily Lenders for 2026
• Best Multifamily Construction Lenders for 2026
• Best Agency Multifamily Lenders for 2026

Frequently asked questions