Apartment Building

Fannie Mae Standard DUS Loans

FNMA's Multifamily Mortgage Business provides first lien permanent mortgage loan financing for the acquisition and/or refinancing for apartment and 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 execution is available for most loans greater than $750,000. Standard carve-outs for “bad acts” such as fraud and bankruptcy are required.
EscrowsReplacement reserve, tax, and insurance escrows are typically required for higher leverage transactions.
Third-Party Reports Standard third-party reports including Appraisal, Phase I Environmental Assessment and a Physical Needs Assessment are required.
Interest RateFixed and variable rate options are available.
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