Sample Terms for the Freddie Mac Small Balance Loan 2021 Keep reading below to learn more, or click here to download our easy-to-understand Freddie Mac Small Balance Loan term sheet. Freddie Mac has effectively addressed all these issues with a streamlined small balance loan program with substantially compressed fixed costs and rates as competitive as those for large loans. One of the most substantial obstacles to originating small balance loans is the cost to the borrower. Third party reports and lender legal don't vary much with the loan size, leaving fixed origination costs for a $1 million loan very similar to those of a $10 million loan. In the last few years, Freddie Mac finally decided to get competitive in the small balance market, and their new product, the Freddie Mac Small Balance Loan, has been accepted with open arms. Freddie Mac has forever been the industry's most competitive source of financing for large multifamily loans, particularly loans north of $10 million, however, Fannie Mae always dominated the market under $10 million.
