Fannie Mae Reduced Occupancy Affordable Rehab (ROAR) Multifamily Loan
Our Fannie Mae Multifamily Loan Benefits
Fannie Mae Multifamily Loan rates start as low as 2.59% (as of October 20th, 2021)
• No upfront application or processing fees
• Simplified application process
• Financing up to 80% LTV
• Terms and amortizations up to 30 years
• Long term fixed rates
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
The Fannie Mae Reduced Occupancy Rehab Multifamily Loan provides a great option for investors looking for a permanent mortgage loan for affordable housing property in need of renovations. This loan offers flexible and permanent loan solutions, allowing investors to rehabilitate their properties with more efficiency than standard construction loans or forward commitments. Additionally, this program offers interest only during the rehab period and provides increased leverage opportunities as loans are typically underwritten to as-improved rents.
Fannie Mae Reduced Occupancy Affordable Rehab (ROAR) Multifamily Loan Highlights
Property and Sponsor Eligibility:
- Must be an existing and stabilized multifamily affordable housing property
- Property must be undergoing renovations
- Borrower must have demonstrated experience
- Available for both acquisition and refinance
- Renovations can be up to $120,000 per unit
Loan Size: Minimum of $5 million
Term: 5-30 years
Amortization: Up to 35 years
Interest Rate: Both fixed- and variable-rate options are available
Maximum LTV: Up to 90% based on stabilized value
Minimum DSCR: 1.15x based on stabilized rents
Prepayment Penalty: Flexible prepayment options available, including yield maintenance and declining prepayment premium.
Rehab Period: 12-15 months
Rehab Period Terms:
- Occupancy may drop to 50% during rehab period.
- DSCR may drop to minimum of 1.0x (interest-only basis) or 0.75x (amortizing basis)
- Rehab funds will be escrowed
- Property must be fully stabilized no later than 15 months after Mortgage Loan origination.
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