Fannie Mae’s Apartment Mortgage Business program provides a bulk delivery structuring option that gives borrowers the ability to arrange financing terms for a group of properties. This program provides customized structuring options and an MBS execution that permits substitutions. Eligible properties include: conventional multifamily, seniors housing, and manufactured housing communities.
| Fannie Mae Bulk Multifamily Mortgages Overview | |
| Structure | A Bulk Delivery is governed by a Bulk Delivery Agreement between borrower and lender that permits multiple mortgage loans. |
| Bulk Delivery Amount | $55MM+ |
| Term | Min. 5 years |
| Amortization | Interest-only and amortizing available, based upon property performance. |
| Maximum LTV/ Minimum DSCR | Fannie Mae DUS “Tier 2” DSCR and LTV standards (as applicable). |
| Recourse | Non-recourse, subject to standard non-recourse carveouts. |
| Rate Lock | 30- to 90-day commitments. An early rate lock feature is available allowing the borrower to lock a rate 45 to 180 days in advance of closing. |
| Property Substitutions | Subject to the Bulk Delivery Agreement, a property generally may be substituted if: (A) the substitute property has a valuation equal to or greater than the greater of (i) the valuation of the release property immediately prior to release, or (ii) the original valuation of the release property; and (B) the substitute property has net operating income equal to or greater than the greater of (i) the net operating income of the release property immediately prior to the release, or (ii) the original net operating income of the release property. |
| Expansion | Subject to Fannie Mae approval, the maximum amount of the bulk delivery facility may be increased. |
| Third-Party Reports | Standard third-party reports including Appraisal, Phase I Environmental Assessment and a Property Condition Assessment are required. |
| Interest Rate | Fixed-rate and variable-rate available. Certain variablerate mortgage loans may be converted to fixed-rate for the remainder of the term. An interest rate cap or other hedging arrangement is required for all variablerate loans. |
| Rate Lock | 30- to 180-day commitments. Early rate lock is available with prior approval from Fannie Mae upon completion of preliminary underwriting. |
| Assumption | Assumption of an individual mortgage loan is permitted upon satisfaction of the requirements of the Bulk Delivery Agreement. |
| Prepayment Options | Yield maintenance and other graduated prepayment options are available. Other options may be available on a negotiated basis. |
| Supplemental Financing | Supplemental Loans are available. |
