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's offerings include:

Description

Simplified loan approval process for long term fixed rate financing for apartments, manufactured housing, mobile home parks, and cooperative apartments.

Loan Amount

$1,000,000 – $6,000,000 nationwide

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

Non-recourse lending is available

Debt Service Coverage

1.25x minimum

Loan to Value

Up to 75% maximum LTV for refinances and 80% for purchases

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 and a 1% fee

Taxes and Insurance Escrows

May be waived on lower LTV loans

Net Worth and Liquidity

Net worth and liquidity requirements must be met

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

Fees

Due Diligence Fee: $7,500 – $8,500 non-refundable fee for 3rd party reports and processing

Timing

45-60 days from complete application to closing

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