Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Fannie Mae Program
Fannie Mae ARM 5-5 Multifamily Loan
The Fannie Mae ARM 5-5 Multifamily Loan is one of the Fannie Mae multifamily programs Select Commercial arranges nationwide. Its highlights and terms are below, and you can compare it on our Fannie Mae multifamily page or view today’s commercial mortgage rates.
Get a Free QuoteAbout the ARM 5-5 Multifamily Loan
The Fannie Mae ARM 5-5 provides variable-rate financing for acquisitions or refinances, with an initial 5-year term and an option to extend for a second 5-year period. There is no maximum loan size and the maximum interest rate is set at rate lock.
Program Highlights & Terms
- Term: Initial 5-year term, with an option to extend for another 5 years
- Amortization: Up to 30 years
- Interest Rate: Adjustable, based on the 30-day Average SOFR
- Maximum LTV: 65%
- Minimum DSCR: 1.00x
- Interest Rate Cap: Maximum monthly adjustment of 1%; lifetime rate capped at 5%
- Prepayment: No prepayment in the first year of each 5-year period; 1% penalty thereafter; no penalty in the last 3 months of the term
- Fixed-Rate Conversion: Convert to a 7- or 10-year fixed loan with no prepayment penalty, minimal underwriting and no increase in loan amount (supplemental may be available)
- Recourse: Non-recourse with standard carve-outs
- Other Terms: Supplemental financing available; assumable subject to review; escrows for replacement reserves, taxes and insurance
Terms are indicative and set by Fannie Mae underwriting for your specific property.
What Our Clients Say
“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“I found selectcommercial.com and saw they specialized in apartment building loans. In the end, they were by far the best company I have used. Next time I know who to call first.”
Jerry T. · Long Island, NY“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York CityGet Your Fannie Mae Quote
No cost, no obligation. Written answers within 48 hours on multifamily loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up