Fannie Mae Moderate Rehabilitation (Mod Rehab) Supplemental Affordable Housing Multifamily Loan

Have you recently finished moderately rehabilitating your affordable housing multifamily property with a Fannie Mae loan? If so, you may in need of new funds and conventional financing might not be ideal for you. The Fannie Mae Moderate Rehabilitation (Mod Rehab) Supplemental Mortgage Loan for Affordable Housing may be the perfect option for you. These loans are excluded from Fannie Mae’s one Supplemental Mortgage Loan rule. Additionally, they are generally lower cost than both refinancing and other supplemental mortgage loans. In comparison to conventional Fannie Mae Moderate Rehab Supplemental Loans, these loans offer longer amortizations, higher LTV allowances and lower minimum DSCR requirements. Plus, these loans are fully assumable with lender approval.

Fannie Mae Moderate Rehabilitation (Mod Rehab) Supplemental Affordable Housing Multifamily Loan Highlights

Property Eligibility:

• Must be a stabilized conventional, affordable housing, seniors housing, student housing or manufactured housing multifamily property
• First mortgage loan identified as moderate rehab
• Must have an existing Fannie Mae mortgage loan on the property
• Fannie Mae must be the only debtor on the property

Term: 5 to 30 years

Amortization: Up to 35 years

Interest Rate: Both fixed and variable rate options are available

Maximum LTV: 85%. Might be higher for certain properties

Minimum DSCR: 1.15x

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

Other Terms:

• Loans are typically assumable
• Escrows for replacement reserves, taxes and insurance are typically required