SMALL LOANS
MULTIFAMILY
WHERE VISION INTERSECTS WITH OPPORTUNITY
Our expertise and dedication show in all we do to help clients reach their growth potential and realize their vision. Berkadia Small Loans is made up of mortgage bankers and analysts who know the ins and outs of small loans and can bring you solutions that align with your needs.
With the support of a network with a presence in every major market nationwide, unparalleled access to data, and the skills and resources to serve the lifecycle of your investment, our advisors are prepared to effortlessly navigate you through the agency lending process.
Berkadia is a top multifamily lender because we’re experts in our domain. Whether it’s small loan agency lending, FHA/HUD financing or affordable housing, no one has more knowledge, experience, or ability to execute than we do. It enables us to provide best-in-class financing for clients no matter what they are doing in the multifamily space.”
ROBERT DOXSEE Managing Director, Berkadia
IT'S IN OUR DNA.
Our mission is inspired by our two shareholders who created Berkadia— Berkshire Hathaway and Jefferies Financial Group. Both firms are renowned for their capital strength, sophisticated investment strategies and exacting attention to their clients’ diverse needs.
We’re honored to continue the Berkadia legacy in everything we do. When you work with us, you’re more than a client, and more than a partner. You’re a member of our family.
Mortgage Banking
Your projects, of any size and location, benefit from best- in - class financing partners and unparalleled access to capital.
Servicing
Get customized solutions and seamless service with our established resources and proven expertise.
Investment Sales
When you equip the right professionals with industry-leading insights and tools, the result is better investment outcomes.
Technology
Advanced decision-making with actionable insights backed by our powerful data.
Townhouse Village Newburg, OR
$3,100,000
Puyallup Flats Puyallup, WA
$1,614,000
343 Grove St Brooklyn, NY
$1,534,000
Carmel Apartments Seattle, WA
$1,760,000
2336-2338 Main Street Bridgeport, CT
$1,524,000
Landover Townhomes Vancouver, WA
$2,888,000
Audubon Place Colorado Springs, CO
$1,352,000
82 Howard Avenue
New Haven, CT
$1,228,000
AGENCY LENDING
2024 Berkadia Rankings
Freddie Mac #1
Lender
Fannie Mae #2
DUS Lender
Fannie Mae Small Loans
Loan Size
$1 million – $9 million
Loan Purpose Acquisition or Refinance
Units
5+
Eligible Property Types
Conventional (market-rate) multifamily and some manufactured housing communities
Stabilized multifamily properties ( ≥ 90% occupancy for 90 days; ≥ 90% over T12 if < 10 units)
Terms
Prepayment Options
Rate Lock
Benefits of Agency Lending
y Non-recourse debt (with standard carve-outs)
y Up to 80% LTV at a 1.25x minimum DSCR (1.20x in top markets)
y 5 to 30-year loan terms with 30-year amortization and interest-only also available
y Fixed and hybrid fixed-to-floating rate options
y Flexible prepayment options
y Low transaction costs
y Streamlined third-party reports
y Competitive rates
y Acquisition or refinance permitted
y 60 to 75-day closing time frames achievable
y Fixed-rate period from 5 to 30 years
y Up to 30-year amortization
y Maximum 80% LTV
y Minimum 1.25x DSCR
y Partial and full-term interest-only available
Stepdown prepayment penalty is available. Yield maintenance (YM) is standard.
Length of YM is customizable.
Rate floats until final commitment prior to close; an elective rate lock is available for a fee
Recourse Non-recourse with standard carve-outs
Supplemental Financing Available
Subordinate Debt Not permitted
Net Worth and Liquidity Net worth ≥ loan amount and liquidity ≥ 9 months principal and interest
Escrows
y Tax and insurance escrows required; may be waived on lower leverage transactions
y Replacement reserves required; may be waived in eligible markets or on lower leverage transactions
Third-Party Reports Appraisal, streamlined Property Condition Assessment report, and seismic (if needed)
Assumption
Typically assumable for 1% assumption fee, paid by new borrower, subject to review and approval of the new borrower's financial capacity and experience
Freddie Mac Optigo® Small Balance Loans
Loan Size
$1 million – $7.5 million
Loan Purpose Acquisition or Refinance Units
5+
Eligible Property Types
Conventional (market-rate) multifamily and some affordable housing
Stabilized multifamily properties (ideally ≥ 90% over T3, lower by exception)
Terms
y Fixed-rate period from 5 to 10 years
y Fixed, or hybrid ARM (fixed-to-float, due in 20 years)
y 30-year amortization
y Maximum 80% LTV
y Minimum 1.25x DSCR (1.20x in top markets)
y Partial and full-term interest-only available
Prepayment Options Various declining schedules and yield maintenance options available
Rate Lock Rate held at application
Recourse Non-recourse with standard carve-outs
Supplemental Financing Not available
Subordinate Debt Not permitted
Net Worth and Liquidity Net worth ≥ loan amount and liquidity ≥ 9 months principal and interest
Escrows
y Tax and insurance escrows required; may be waived on lower leverage transactions
y Replacement reserves required for properties with ≥ 50 units
Third-Party Reports Appraisal, streamlined Property Condition Assessment report, and seismic (if needed)
Assumption
Typically assumable for 1% assumption fee, paid by new borrower, subject to review and approval of the new borrower’s financial capacity and experience
SUCCESS IS NOT PURELY MEASURED BY NUMBERS.
But, they help tell our story.
$680 million
Financed by Berkadia Small Loans in 2023 and 2024.
#1
Ranked as Freddie Mac’s #1 Lender in 2022, 2023, and 2024.
215
In 2023 and 2024, Berkadia Small Loans closed 206 loans with Freddic Mac and Fannie Mae's small loan programs.
$28 billion
In 2023 and 2024, our combined agency lending production totaled $28 billion.
CLOSING IS JUST THE END OF THE BEGINNING.
We’re in this for the long haul. To us, every deal is the start of a new relationship or the continuation of one built on performance and trust. Our clients are family, and we’re relentlessly focused on your long-term success.
