Fannie Mae Apartment Loans - Small Balance

Apartment Building Loan Fannie Mae Apartment Loan Program

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


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


Up to 30 years, based on the age and condition of the property

Prepayment Penalty

Yield maintenance and step-down options available


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


Typically expect to see 90% occupancy for the previous 3 months


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


45-60 days from complete application to closing

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