Fannie Mae ARM 5-5 Multifamily Loan
Our Fannie Mae Multifamily Loan Benefits
Fannie Mae Multifamily Loan rates start as low as 2.54% (as of July 27th, 2021)
• No upfront application or processing fees
• Simplified application process
• Financing up to 80% LTV
• Terms and amortizations up to 30 years
• Long term fixed rates
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
The Fannie Mae ARM 5-5 Multifamily Loan provides great variable rate financing to those looking to either acquire a property or refinance their existing debt. This program offers an initial 5 year loan term with the option to extend for a second 5 year period. There is no maximum loan size and the maximum interest rate is set at rate lock. With attractive low-cost financing, this program is great solution for investors of all types of existing and stabilized multifamily properties.
Fannie Mae ARM 5-5 Multifamily Loan Highlights
Term - Initial loan term is 5 years. Option to extend for another 5 years.
Amortization - Up to 30 years
Interest Rate - Adjustable based on the 30 day Average SOFR
LTV - Maximum of 65%
DSCR - Minimum of 1.00x
Recourse - Non-recourse with standard “bad boy” carveouts
Prepayment - No prepayment allowed in the first year (of both 5 year periods). After that prepayment penalty of 1%. No penalty during last 3 months of the term.
Supplemental Financing - Available
Interest Rate Cap - Maximum monthly rate adjustment of 1%. Maximum lifetime rate capped at 5%.
Escrows - Loans require escrows for replacement reserves, taxes and insurance
Assumption - Loans are assumable subject to review and approval
Conversion to Fixed Rate
Variable interest rate may be converted to a 7 or 10 year fixed rate loan with following conditions:
- No Prepayment Penalty is charged when variable rate is converted to fixed rate
- Minimal underwriting required
- Lender determines that the current net operating income can support the new fixed-rate terms.
- No increase in the loan amount; loan may be eligible for a Supplemental Loan.
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