Fannie Mae provides options for preserving the availability and affordability of affordable housing projects. This program provides flexible financing, competitive pricing, and fast execution time.
| Fannie Mae Affordable Housing Loans Overview | |
| Term | 10-30 Years |
| Amortization | Up to 30 Years |
| Max LTV | 80% |
| Min DSCR DSCR Calculator | 1.20x |
| Recourse Loss | Non-recourse |
| Rate Lock | Rate Lock Early rate lock feature is available allowing the borrower to lock a rate 45 to 180 days in advance of closing. |
| Recourse | Recourse Non-recourse. Standard carve-outs for “bad acts” such as fraud and bankruptcy are required. |
| Escrows | Standard DUS escrow requirements for taxes and insurance. Replacement Reserves are required at a minimum of $250 per unit per annum, and must be fully funded. |
| Third-Party Reports | Standard third-party reports including Appraisal, Phase I Environmental Assessment and a Physical Needs Assessment are required. |
| Interest Rate | Fixed and variable rate options. |
| Assumption | Loans are typically assumable. |
| Prepayment Options | Yield maintenance and other graduated prepayment options are available. |
| Supplemental Financing | Supplemental mortgages are available, providing the opportunity for additional proceeds for communities in the final stages of lease-up or with expansion phases. |
| Additional Considerations | Low-income qualifying restrictions; 20% or more units rented to families earning at or below 50% of Area Median Income (AMI), or 40% or more units rented to families earning at or below 60% of AMI. Restriction must be recorded. |