Mid-Size Apartment Loans

Commercial Loan Direct as a correspondent of the Fannie Mae program offers fixed rate funding on mid balance loans for multifamily properties. These loans are available nationwide and will be funded under the Fannie Mae Delegated Underwriting Services Program.

Fannie Mae Apartment Loans
Loan Ammount
$750k to $500 Million
5, 7, 10, 15 and 30 years
25 and 30 Years
Loan to Value Ratios:
  • Tier II: 80% LTV Purchase and 75% cash out refi (and 5 yr terms) 1.25x UW DSCR
  • Tier III: 65% LTV 1.35x UW DSCR
  • Tier IV: 55% LTV 1.55x UW DSCR
Supplemental Financing:
(2nd mortgage) available through Lender
Prepayment Penalty:
Yield Maintenance or Declining
Yes, by future qualified buyers with 1% fee
Fixed and variable
Interest only:
Available (for tiers III & IV Max 2 yrs on terms 10 yr or greater
Origination fee:
Closing Costs:
Will be determined at application
Final pricing depends on credit worthiness of transaction. Current Fannie Mae interest rates
45-60 days from completed application to commitment


Property - Requirements
5 or more multifamily units
Stabilized Occupancy
80% economically occupied and 85% physically occupied for 90 days prior to commitment
Additional Properties
Student housing, seniors housing, military housing, affordable housing and manufactured housing home communities*
Family MHC deals will be restricted to 25 yr amortization - (exceptions granted for parks with 55+ age restrictions).
Commercial Income
Must not exceed 20% of EGI & 35% of net rentable space
5 or more multifamily units


Borrower - Requirements

Single asset entity.
The Borrower may be involve foreign persons or entities, so long as, at the minimum, one (1) US tier is established.
Co-tenants structures generally require the following: a) No more than five (5) co-tenans and b) Each co-tenant is a single asset entity.

Key Principal Designation
The individual that control and manage the Borrower, as identified by the Lender and that the Lender determines are critical to be successful operation and management of the Borrower and Property
Generally, post-closing liquidity equal to or greater than 6 months of debt service
Net Worth
Post-closing net worth equal to or greater than the subject loan amount
Credit Score
FICO score must be greater than 680
5 yrs or more with subject property or property of similar size
Pre-review Markets
The following markets require Fannie Mae Pre-Approval prior to (or at time of) issuing the loan application. In most cases the Lender will require loans in these markets to be Tier 3 (65% LTV Maximum) without a waiver granted by Fannie Mae.


Pre-Review Markets
Abilene, TX (MSA)
Atlanta, GA (MSA)
Auburn, AL (MSA)
Cincinatti, OH (MSA)
Houston, TX (MSA)
Jacksonville, FL (MSA)
Indiana (State)
Las Vegas, NV (MSA)

New Orleans, LA (MSA)
North Dakota (State)
Ohio (State)
Phoenix, AZ (MSA)

Tuscon, AZ (MSA)
Guam (Territory)
Michigan (State)
Puerto Rico (Territory)
US Virgin Islands


Fannie Mae 3MaxExpress™ - Small Loan Program

The Fannie Mae 3MaxExpress™ multifamily loan product offers flexible terms and streamlined processing for apartment loan sizes to $3 million, and up to $5 million in some areas. Designed for low cost execution, competitive pricing, reduced documentation, and streamlined third party reports, the 3MaxExpress™ apartment financing product offers borrowers unmatched performance and value.

Low Fixed Interest Rates 5-30 Year Fixed Rate Terms Supplemental Loan Eligibility Finance up to 3% of Closing Costs Extended Rate Lock Options 80% LTV / 85% With Mezz B Note Interest Only Payment Options 365 Day Extended Rate Locks

Overview: For qualified borrowers and properties, Fannie Mae offers the lowest fixed interest rates with customized terms to deliver highly target apartment financing solutions.

Properties not eligible for financing under the 3MaxExpress™ Program include: Multifamily Affordable Housing, Manufactured Housing Communities, Seniors Housing, Dedicated Student Housing, and properties requiring substantial rehabilitation.

Loan Size: $500,00 - $3,000,000. Apartment loans sizes to $5 million are available in select markets including: San Francisco, San Diego, Orange County (CA), Los Angeles, Chicago, Miami, Washington (DC), New York, Boston.

Recourse: is required for multifamily loan sizes below $1,500,000. Non-recourse is available for multifamily loan sizes above $1,500,000, standard carve-outs apply.

Occupancy: No less than 90% for 90 days preceding closing.

Required Documentation: Credit report on all guarantors, Property operating history for past two years, Year-to-Date property operating history, 2 most recent years tax returns on all guarantors, Rent roll, Subject property picture.

FNMA's Role in the Multifamily Market

Fannie Mae plays a critical role in the U.S. rental housing market. FNMA's original charter in 1938 provided authority to facilitate the construction and financing of economically sound apartment housing projects. In 1984, Fannie Mae created a business division dedicated to purchasing multifamily loans. Since that time, Fannie Mae has continued to provide a consistent supply of funding to the multifamily market through all market cycles.

Currently, amid a shortage of private investment capital and credit for housing finance, Fannie Mae provides more than 50 percent of all secondary market funds available for multifamily housing finance. As of June 30, 2010, the company’s $185 billion book of roughly 42,000 multifamily loans is performing significantly better than the commercial mortgage-backed securities market.

Fannie Mae also has a history of providing liquidity for smaller rental property loans. Over the past ten years, the company has developed and refined a dedicated, small-loan platform to provide consistent liquidity to the small loan market and financed $60 billion of small loans during that time.

Fannie Mae Provides Liquidity to Capital Markets

Until the recent economic downturn led to a major contraction, multifamily housing projects were financed by a variety of lender types. As the economic downturn continued, most of these institutions (such as life insurance companies, conduits, investment banks, and depository institutions), exited the industry for some time. Notably, many of these lenders and, in particular, the commercial mortgage-backed securities (CMBS) industry, continue to be relatively inactive, leaving Fannie Mae, Freddie Mac and the Federal housing Administration (FHA) as the primary liquidity providers for the multifamily housing industry since 2008.

In retrospective it appears like the apartment lending arena in 2012 is beginning to pick up some pace and the secondary marketplace is showing signs of recovery. CLD offers a wide selection of apartment lending options contact one of our loan officers to assist you.