Affordable Housing Building

Fannie Mae Affordable Housing Loans

Fannie Mae provides options for preserving the availability and affordability of affordable housing projects. This program provides flexible financing, competitive pricing, and fast execution time.

Term10-30 Years
AmortizationUp to 30 Years
Max LTV80%
Min DSCR DSCR Calculator1.20x
Recourse LossNon-recourse
Rate LockRate Lock Early rate lock feature is available allowing the borrower to lock a rate 45 to 180 days in advance of closing.
RecourseRecourse Non-recourse. Standard carve-outs for “bad acts” such as fraud and bankruptcy are required.
Escrows Standard DUS escrow requirements for taxes and insurance. Replacement Reserves are required at a minimum of $250 per unit per annum, and must be fully funded.
Third-Party Reports Standard third-party reports including Appraisal, Phase I Environmental Assessment and a Physical Needs Assessment are required.
Interest Rate Fixed and variable rate options.
AssumptionLoans are typically assumable.
Prepayment Options Yield maintenance and other graduated prepayment options are available.
Supplemental Financing Supplemental mortgages are available, providing the opportunity for additional proceeds for communities in the final stages of lease-up or with expansion phases.
Additional Considerations Low-income qualifying restrictions; 20% or more units rented to families earning at or below 50% of Area Median Income (AMI), or 40% or more units rented to families earning at or below 60% of AMI. Restriction must be recorded.

FNMA Multifamily Mortgages

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