Apartment Building

Fannie Mae Small Balance Loans

Fannie Mae’s Multifamily Mortgage Business offers financing options for loans up to $3 million for the acquisition or refinance of apartment buildings and other multifamily properties. This program provides flexible financing, competitive pricing, and a fast execution. Eligible properties must have 5 units. Eligible property types include existing, stabilized conventional, affordable housing, seniors housing, student housing, and manufactured housing properties.

Term5-30 Years
AmortizationUp to 30 Years
Max LTV80%
Min DSCR DSCR Calculator1.25x
RecourseNon-recourse lending available subject to certain restrictions. If recourse is required, key principal(s) are required to execute an appropriate state-specific payment guaranty or exceptions to non-recourse guaranty.
EscrowsEscrows may be waived if criteria are met.
Third-Party Reports A streamlined Physical Needs Assessment and standard Environmental Assessment are required.
Interest RateFixed and variable rate options
Accrual30/360 and Actual/360
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.
Assumption Loans are typically assumable
Prepayment OptionsYield maintenance and other graduated prepayment options
Supplemental Financing Supplemental Loans available
Property Considerations Properties must have at least 90% occupancy for 90 days prior to funding.

FNMA Multifamily Mortgages