Fannie Mae Loans

With respect to financing multifamily properties – including student housing, affordable housing, assisted living or other healthcare facilities, mobile home parks and more – if there is no issue with prepayments, 9 out of 10 times, Fannie Mae delivers easily the most competitive fixed rate and floating rate financing for apartment and other multifamily properties, with the exception of Freddie Mac. Because Fannie Mae loans require a very experienced borrower with a strong financial statement and rigorous underwriting of the property, getting qualified can be somewhat challenging. Frequently, borrowers who are unable to qualify for Fannie Mae financing find a CMBS loan as an excellent option.

Sample Fannie Terms For Apartment Loans
Terms as of April 2017

Size:                    Generally $1 million to $100 million

Terms:                  5, 7, 10, and 12 yearterms

Interest Rates:     3.75% to 4.85%
Floating rates from 2.35%

Amortization:       30 years

Maximum LTV:     75% – 80%

Minimum DSCR:  1.25 x’s

Non-recourse with standard “bad boy” carve-outs

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.

Prepayment Options: Yield maintenance and other graduated prepayment options are available. There is no prepayment premium if the loan is paid within the last 90 days of the loan term.

Advantages:

• Highly competitive pricing.
• Early rate lock.
• Up to 80% LTV.
• Non-recourse.

Disadvantages:

• Selective of the properties they will finance.
• Require financially strong borrowers.