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. The Fannie Mae 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 Apartment Loans - Large Balance Highlights

Fannie Mae DUS Loan Program:

Eligible Properties and Borrowers:

• Must be an existing and stabilized multifamily property
• Can be either Conventional Property, Multifamily Affordable Housing Property, Seniors Housing Property, Student Housing Properties and Manufactured Housing Communities
• Properties must have a minimum of five units
• Manufactured Housing Communities must have a minimum of 50 pad sites
• Borrower must be a credit-worthy single asset entity

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
Loans are non-recourse (subject to standard carve-outs for “bad acts” such as fraud and bankruptcy)