Fannie Mae Apartment Loans - Large Balance
Fannie Mae is one of the nation’s leading secondary market sources of capital for apartment building financing. Fannie Mae provides mortgage capital for conventional, affordable housing, cooperatives, senior housing, student housing, manufactured housing communities and mobile home parks nationwide. Fannie Mae's apartment loan program offers many distinct advantages over traditional bank programs, including long-term fixed rates up to 30 years, high LTV ratios up to 80%, and nonrecourse financing (no personal guarantee to the principals).
Fannie Mae Multifamily provides long term permanent mortgage loans for the purchase or refinance (cash-out OK) of apartment properties nationwide.
Fannie Mae Large Loan Program:
Description
Long term, fixed rate financing for the purchase or refinance of apartment buildings, mobile home parks and cooperative properties
Loan Amount
$6,000,000 and up
Loan Terms
Fixed rates for 5, 7, 10, 12, 15, 20 and 30 years
Amortization
Up to 30 years, based on property condition; Interest-only financing is available
Loan to Value Maximum
Up to 80%
Coverage Minimum
Typically 1.25x
Interest Rate
Subject to “tiered” LTV ratio (55%, 65%, and 80% tiers)
Prepayment Terms
Yield maintenance and step-down prepayment options available
Third Party Reports
MAI Appraisal, Physical Needs Assessment, and Environmental Phase I Assessment are required, plus Seismic Report may be required for certain locations
Escrows
Real estate taxes, insurance, and replacement reserves subject to underwriting guidelines
Timing
45-60 days from application to closing; dependent on 3rd party report timing and borrower’s submission of due diligence
Rate Lock
Typically, lock occurs after commitment is issued; Early Rate Lock option is available
Assumability
Loan is assumable, subject to lender approval
Recourse
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