Multifamily Mortgages
Fannie Mae Apartment Loans
For those of you who are getting familiar with Fannie Mae Loans, this program offers federally guaranteed mortgages and is one of the largest multi-family loan programs in the country. There are both fixed and variable products available for all property types and are offered nationwide. Properties that fall under the Fannie Mae category are apartments, affordable housing, senior housing, student housing and manufactured housing. There are two major Fannie Mae loan programs in which the majority of products fall under. These loan products are called The Standard DUS Mortgage Product and the Small Loan Programs. The Standard DUS Mortgage Program is best used for the purchase or refinance of e...
FHA Apartment Loans
FHA stands for the Federal Housing Administration. It is a federally guaranteed mortgage program under the Government’s Department of Housing and Urban Development, also known as HUD. FHA loans can be used for the purchase, refinance, construction or substantial rehabilitation of either multifamily or healthcare properties. There are 3 major FHA programs available for the Borrower to choose from. These 3 programs are the Multi-Family Program, Healthcare Program and Special Needs Program. Property types eligible for FHA financing are–Affordable Housing, Apartments, Hospitals and Senior Housing or Skilled Nursing Facilities. FHA’s Multi-family program has a wide array of products avail...
Freddie Mac Small Balance Program
The Small Balance Program is for the acquisition or refinance of small balance loans providing liquidity, stability, and certainty of execution to the affordable rental housing market nationwide. Key Benefits of the Freddie Mac Small Balance Program are as follows. Financing of small balance loans using hybrid ARM or fixed-rate mortgage products, offering partial-term and full-term interest-only, A Streamlined processes during pricing, underwriting, closing and funding as well as Competitive pricing and Streamlined loan documentsProperty types eligible are as follows:Conventional multifamily housing with five residential units or more, including conventional housing with tax abatements and S...
What is a Freddie Mac Apartment Loan?
Freddie Mac Apartment Loans The Federal Home Loan Mortgage Corporation (“Freddie Mac” or FHLMC) has multifamily mortgage products available for conventional (“market-rate”) properties, seniors housing, student housing, cooperative and targeted affordable housing. Through it’s various programs, Freddie Mac offers mortgages to experienced multifamily investors that focus on low- to median-income tenants. Like CMBS and Fannie Mae loans, these mortgages are pooled, securitized, and sold to investors. Freddie Mac loans are priced based on the corresponding treasury and a spread, which takes into account the loan amount, term, LTV, and property location. Pricing consideration...
What is a Fannie Mae Apartment Loan
A The Federal National Mortgage Association (FNMA or “Fannie Mae”) mortgage is an adjustable or fixed-rate loan product available for various types of multifamily properties. The underwriting and application process is standardized and performed by Delegated Underwriting and Services (DUS) lenders. Through it’s two major programs (Small Loan Program and DUS Program), Fannie offers multifamily mortgages starting at $750, 000. Like CMBS mortgages, these loans are pooled, securitized, and sold to investors, but typically serviced by the originator. Fannie Mae loans are priced based on the corresponding treasury and a spread, which takes into account the loan amount, term, L...
Fannie Mae Apartment Loan Application Process
A Fannie Mae (“Fannie Mae” or FNMA) mortgage is a loan product for apartment buildings with 5+ units. These loans can be fixed or floating and are generally non-recourse. It is a great product for various multifamily property types, including conventional apartments, affordable housing, senior housing, student housing, cooperative housing, and manufactured housing. It can also be used for mixed-use buildings where the other commercial units make up 20% or less of the gross income. Fannie Mae loans are only available for experienced multifamily investor/managers. The following are typical loan features of a Fannie Mae mortgage, but are subject to change depending on market condi...
Freddie Mac Apartment Loan Application Process
A Federal Home Loan Mortgage Corporation (“Freddie Mac” or FHLMC) mortgage is a non-recourse loan product for multifamily properties with 5+ units. These loans can be fixed, floating, or a hybrid of both, with interest-only periods available. It is for various multifamily property types, including conventional apartments, affordable housing (tax-exempt and taxable), seniors housing, student housing, cooperative housing, and manufactured housing. Freddie Mac loans are only available for experienced multifamily investor/managers. The Freddie Mac due diligence and closing process is very similar to the Fannie Mae and CMBS processes since all three have loans that are poo...
What is an FHA Apartment Loan under HUD?
In addition to its healthcare and special needs programs, the Federal Housing Authority (FHA) branch of the US Department of Housing and Urban Development (HUD) offers government guarantees on various types of multifamily mortgages through its Office of Multifamily Housing Programs. These loans are available for conventional apartments, low-income housing, manufactured housing communities, cooperative housing, and seniors housing. This type of loan is only for very seasoned commercial real estate investor/owners because of the extensive paperwork, reporting, reserves, and experience requirements. * Although $1 million is technically the minimum some lenders will underwrite at,...
FHA Apartment Loan Application Process
The Federal Housing Administration (FHA) Division of the US Department of Housing and Urban Development (HUD) offers government-insured loans for multifamily properties with experienced (and patient! ) investor/owners. It also offers loans for healthcare facilities (i. e. hospitals and residential care facilities) as well as special needs facilities for the elderly or disabled. Although FHA apartment loans have longer closing times and higher fees than any other mainstream multifamily product, this is a strong go-to product for long-term investors with large loan requests because of the long fixed term and amortization, non-recourse structure, low interest rates, and high leverage point...
