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.
| Overview | |
| Term | 5-30 Years |
| Amortization | Up to 30 Years |
| Max LTV | 80% |
| Min DSCR DSCR Calculator | 1.25x |
| Recourse | Non-recourse execution is available for most loans greater than $750,000. Standard carve-outs for “bad acts” such as fraud and bankruptcy are required. |
| Escrows | Replacement 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 Rate | Fixed and variable rate options are available. |
| 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. |
FNMA Multifamily Mortgages
Fannie Mae Apartment Loans
