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.
| Fannie Mae Small Balance Loans | |
| Term | 5-30 Years |
| Amortization | Up to 30 Years |
| Max LTV | 80% |
| Min DSCR DSCR Calculator | 1.25x |
| Recourse | Non-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. |
| Escrows | Escrows may be waived if criteria are met. |
| Third-Party Reports | A streamlined Physical Needs Assessment and standard Environmental Assessment are required. |
| Interest Rate | Fixed and variable rate options |
| Accrual | 30/360 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 Options | Yield 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. |