What are Small Balance Commercial Real Estate Loans?

Small balance commercial real estate loans are a type of mortgage in an amount ranging from $250,000 to $5,000,000 (amounts vary by lender). For example, small balance loans are for smaller multifamily, retail, office, owner-occupied or mixed-use properties. These types of loans are primarily repaid by the cash-flow of the property or operating company (for owner-occupied), so it is important to review the leases and rent roll to ensure the property is making money. There are many options for full documentation, low documentation, and no documentation small balance commercial mortgages.

How To Get a Small Balance Commercial Real Estate Loan?

While there are hundreds of small balance lenders, Fannie Mae and Freddie Mac are the two largest lending entities in the United States. Both entities look for experienced borrowers and the property needs to have a dependable stream of income. There are pros and cons to each of their loan programs, so working with a commercial mortgage broker will help save you a great deal of time. 

Whether you are looking at Fannie Mae, Freddie Mac or any other small balance program, Simple Commercial Capital will help explore what financial support is right for you and your business. We are here to help guide you through the process and documentation that is needed to get an approval quickly.