Fannie Mae Apartment Loans - Small 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 offers first lien permanent financing for the acquisition or refinance (including cash-out) of multifamily properties nationwide.
Fannie Mae Small Mortgage Loan Program Guidelines
Description
Simplified loan approval process for long term fixed rate financing for apartments, manufactured housing, mobile home parks, and cooperative apartments.
Loan Amount
$1,500,000 – $25,000,000+ nationwide (larger balance loans available through the Fannie Mae DUS platform)
Loan Terms
Fixed rates for 5, 7, 10, 12, 15, 20 and 30 years
Amortization
Up to 30 years, based on the age and condition of the property
Prepayment Penalty
Yield maintenance and step-down options available
Recourse
Loans are non-recourse lending (with standard carve-outs for “bad-boy” acts)
Debt Service Coverage
1.25x minimum
Loan to Value
Up to 80% maximum LTV for purchases and 75% for refinances
Subordinate Financing
Supplemental mortgages are available after the first 12 months of the loan term or loan assumption
Occupancy
Typically expect to see 90% occupancy for the previous 3 months
Assumability
Non-recourse loans are assumable with the Lender’s consent
Taxes and Insurance Escrows
May be waived on lower LTV loans
Net Worth and Liquidity
Net worth and liquidity requirements must be met. Speak to us for details.
Replacement Reserve Escrows
To be determined based upon appraisal and engineering reports
Rate Lock
Rate lock occurs after commitment is issued; an early rate lock option is also available
Timing
45-60 days from complete application to closing
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