Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Fannie Mae Program
Fannie Mae ARM 7-6 Multifamily Loan
The Fannie Mae ARM 7-6 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 7-6 Multifamily Loan
The Fannie Mae ARM 7-6 is an adjustable-rate option with a 7-year term and up to 80% LTV. Borrowers can convert to a fixed-rate loan any time between the first day of the second year and the first day of the sixth year, so you can start adjustable and lock a fixed rate during the term.
Program Highlights & Terms
- Loan Term: 7 years
- Amortization: Up to 30 years
- Maximum LTV: Up to 80%
- Minimum DSCR: 1.00x at the maximum lifetime interest rate
- Index: 30-Day Average SOFR; rate equals index plus spread and adjusts with the index
- Rate Cap & Floor: Maximum monthly adjustment of plus or minus 1%; lifetime rate capped at 6%; never below the margin
- Property Eligibility: Existing, stabilized multifamily (conventional, affordable, seniors, student, MHC); acquisitions and refinances
- Prepayment: No prepayment during the lockout (usually year one); 1% premium after lockout; no premium during the open period (last 3 months)
- Fixed-Rate Conversion: Convert to a 7- or 10-year fixed loan between year 2 and year 6 with no prepayment penalty; loan amount cannot increase; supplemental available; converted loans carry yield maintenance
- Recourse: Non-recourse with standard carve-outs
- Other Terms: No maximum loan size; maximum rate set at rate lock; supplemental financing available; escrows for taxes, insurance and replacement reserves; assumable
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