Short answer
The Fannie Small Loan program serves multifamily loans typically in the $1 to 9 million range with streamlined documentation, expedited processing, and pricing competitive with full- DUS execution at small balances. It targets a market segment that traditional CMBS and full-DUS execution do not efficiently serve.
Where is the trade-off?
Less flexibility on structure: standard amortization, limited interest-only options, capped supplemental sizing, and limited custom prepayment language. For straightforward acquisitions and refinances at the small-balance range, those constraints rarely matter.
Sources
- Delegated Underwriting and Servicing (DUS) program disclosures · Fannie Mae · current