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Fannie Mae Small Balance Apartment Loans

Commercial Loan Direct as a correspondent of the Fannie Mae program offers fixed rate funding on small balance loans for multifamily properties. These loans are available nationwide on properties with 5 or more rental units, and will be funded under the Fannie Mae Program.

  • Loan Amount: $750,000 to $3 Million
  • Terms: 5, 7, 10, 15 and 30 years
  • Amortization: 25 and 30 years.
  • Loan to Value Ratios:
    Tier II: 80% LTV Purchase and 75% cash out refi 1.25x DSCR
    Tier III: 65% LTV 1.35x DSCR
    Tier IV: 55% LTV 1.55x DSCR
  • Supplemental Financing: (2nd mortgage) available through Lender
  • Recourse: TBD
  • Prepayment Penalty: Yield Maintenance or Declining
  • Assumable: On Non-recourse loans by future qualified buyers for a 1% fee. (supplemental loan is available to 'qualified' assumption)
  • Fixed, variable, and interest only rates available
  • Origination fee: Negotiable
  • Closing Costs . Will be determined at application
  • Pricing: Final pricing depends on credit worthiness of transaction. Current interest rates
  • Availability: Nationwide
  • Timing: 45-60 days from completed application to commitment
Property - Requirements
Property
5 or more multifamily units
Stabilized Occupancy
90% Avg occupancy for 12 months
Additional Properties
Student housing, seniors housing, military housing, affordable housing and manufactured housing home communities*
Note
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

 

Borrower - Requirements
Structure

Single or multiple 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
Liquidity
Generally, post-closing liquidity equal to or greater than the subject loan amount
Net Worth
Post-closing net worth equal to or greater than the subject loan amount
Credit Score
FICO score must be greater than 680
Experience
Minimum 2 yrs w/ (2) multi-family properties OR minimum 5 yrs with subject property.

 

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% TLV Maximum)

 

65% Max LTV in this areas
Ohio
Michigan
Indiana
Florida		 New Orleans
Cincinnati
Phoenix
Houston

Las Vegas
Atlanta
Puerto Rico
Virgin Islands

Inland Empire (Riverside/San Bernardino counties)

 

Request a Small Balance Fannie Mae program quote