Fannie Mae Hybrid ARM Multifamily Loans

Are you looking for an apartment loan with no balloon payment? If so, the Fannie Mae Hybrid ARM Multifamily Loan may be the perfect option for you. This 30 year loan is comprised of an initial term where interest is paid at a fixed rate. After this term ends, the loan adjusts to an adjustable rate for the remaining 30 years. This program offers competitive interest rates, low cost of execution and flexible prepayment terms.

Fannie Mae Hybrid ARM Multifamily Loans Highlights

Property Eligibility:

• Loan amount must be no more than $6 million
• Properties must be existing and stabilized already
• Available for both acquisitions and refinances

Loan Term:

• 7-year fixed rate term, followed by a 23-year adjustable-rate term
• 10-year fixed rate term 20-year adjustable-rate term

Amortization: 30 years

Maximum: LTV: 80%

Minimum: DSCR: 1.25x

Interest Rate Adjustments:

• During the adjustable rate period, interest rate adjusts based on changes to the underlying Index and is equal to the Index (30-day Average SOFR) plus the Margin.

Prepayment Penalty:

• Various options available during the fixed rate term, including yield maintenance and declining prepayment premium.
• No prepayment premium required for any prepayment during the adjustable rate period

Recourse: Loans are non-recourse with standard carve-outs for bad boy acts

Other Terms:

• Supplemental financing is available
• Loans are typically assumable
• Escrows are typically required for replacement reserves, taxes and insurance