Tap to get financing
Apartment Loans
Fannie Mae
Fannie MaeMultifamily Small Loan ProgramFannie Mae DUS Loans
Freddie Mac
Freddie MacSmall Balance LoansAffordable Housing Express Loans
FHA/HUD
HUD LEAN Loan ProcessingHUD 232/223(a)(7) Refinancing LoansHUD 232/223(f) LoansHUD 241(a) Supplemental LoansHUD 232 LoansHUD 223(a)(7) Refinancing LoanHUD 223(f) LoansHUD 221(d)(4) LoansHUD Apartment Loans
Non-agency
Life Company Apartment LoansHard Money Apartment LoansApartment Bridge LoansMezzanine FinancingSmall Apartment LoansBank LoansConstruction LoansCMBS Loans
Resources
BlogApartment Building InsuranceYield Maintenance CalculatorLoan Repayment CalculatorNOI CalculatorGross Rent Multiplier CalculatorDebt Service Coverage Ratio (DSCR) CalculatorDebt Yield CalculatorCash on Cash Return CalculatorCap Rate CalculatorBreak Even Ratio CalculatorApartment Mortgage CalculatorLoan To Value and Loan To Cost RatiosApartment Finance Due Diligence ResourcesHow to Purchase an Apartment Property
For Brokers
About us
TeamLeadership
(561) 556-9997
Get financing →
Newly Published
Jul 11 at Apartment Loans
Apartment Building Insurance: Comprehensively Protect Your Property
Nov 1 at Apartment Loans
What is Conduit Financing?
Sep 9 at Apartment Loans
Operating Expense Ratio Explained
Explore the Janover Network
May 26 at HUD Loans
Construction Lender Red Flags: When to Walk Away
May 23 at HUD Loans
Top Questions to Ask Your Construction Lender Early On
May 21 at HUD Loans
How Construction Draw Processes Vary by Lender
Was This Article Helpful?
3 min read

Fannie Mae DUS Loans

The Fannie Mae DUS loan is one of the most popular multifamily loan options in the industry, and, with a minimum loan size of $3 million+, is typically used for the financing of larger multifamily properties.

In this article:
  1. Multifamily Loans for Apartment Buildings and Multifamily Developments Insured by Fannie Mae
  2. 2021 Sample Fannie Mae Terms For DUS Loans
  3. Related Questions
  4. Get Financing
Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!

Multifamily Loans for Apartment Buildings and Multifamily Developments Insured by Fannie Mae

It’s no secret that the Fannie Mae DUS loan is one of the most popular multifamily loan options in the industry. DUS loans typically have a minimum loan amount of $3 million, making them a standard when it comes to financing more expensive properties, although smaller amounts can be negotiated at the lender’s discretion. Like many other Fannie Mae loan options, DUS loans offer competitive interest rates, are mainly non-recourse, and are fully assumable (with lender approval).

Fannie Mae DUS Loans can be utilized for acquisitions, refinancing, and even cash-out refinancing of multifamily properties. Their flexibility is near unmatched with a plethora of repayment term lengths and both floating and fixed interest rate financing options. Unlike many of the other offerings from Fannie Mae, however, DUS loans are not fully amortizing, and are therefore balloon loans.

2021 Sample Fannie Mae Terms For DUS Loans

  • Size: Typically $3 million or higher with no set maximum, but smaller loans may be available on a case-by-case basis.
  • Terms: 5, 7, 10, 12, 15, 18, 20, 22, 25, and 30 year fixed-rate loan terms available, variable-rate (with option to convert to fixed-rate) and interest-only loan options are also available
  • Amortization: Up to 30 years, most loans are balloon loans, hybrid options may be available for a fee
  • Maximum LTV: 80%, 75-80% for cash-out refinances
  • Minimum DSCR: 1.25x
  • Recourse: Most loans are non-recourse with standard “bad boy” carve-outs
  • Prepayment Options: Yield maintenance or 1% prepayment penalty, whichever is larger
  • Credit Requirements: A credit score of 680+ typically required (may be somewhat flexible, depending on the situation)
  • Eligible Borrowers: Borrowers must typically be a U.S. bankruptcy remote, single asset Single Purpose Entity (SPE), though this may vary by lender. Partial, indirect foreign ownership is allowed with proper structuring.
  • Eligible Properties:

    Properties with 5+ units are eligible for Fannie Mae DUS loans, including:

    • Townhomes
    • Co-ops
    • Mixed-use commercial/residential properties
    • Condos
    • Properties with tenant-based Section 8 contracts
    • However, some property types are ineligible for Fannie Mae DUS loans, including:

      • Properties with a homeowner's association (HOA)
      • Fractured ownership condos
      • Housing Assistance Program properties (these are eligible for Fannie Mae Multifamily Affordable Housing Loans)
      • Non-contiguous townhomes or duplexes (these may be eligible with a waiver, but that can be difficult to obtain)
      • New construction developments or properties that require substantial rehabilitation
      • Properties involving a healthcare component
      • Advantages:

        • Very competitive interest rates
        • Up to 80% LTV
        • Most loans are non-recourse
        • Supplemental loans are permitted after 12 months
        • 30- 180 day rate locks available after commitment (some lenders may allow rate locks of up to 1 year)
        • Mezzanine financing is available
        • Interest-only payment options are also available
        • Loans are assumable with lender approval
        • Disadvantages:

          • Requires replacement reserves
          • Typically requires 85% physical occupancy, 80% economic occupancy for 90 days before closing
          • Requires third-party reports including an Appraisal, a Physical Needs Assessment, and a Phase I Environmental Assessment
          • Requires a $20,500 application deposit and a $3,000 processing fee
          • Absentee owners typically need to hire third-party management and need a strong track record in the multifamily industry (local owners typically do not)
          • Subordinate debt is not allowed
          • Often requires a credit score of 680 (though this may be flexible)
          • Related Questions

            What are the advantages of Fannie Mae DUS Loans?

            Fannie Mae DUS Loans offer very competitive interest rates, up to 80% LTV, most loans are non-recourse, supplemental loans are permitted after 12 months, 30-180 day rate locks available after commitment (some lenders may allow rate locks of up to 1 year), mezzanine financing is available, interest-only payment options are also available, loans are assumable with lender approval.
          In this article:
          1. Multifamily Loans for Apartment Buildings and Multifamily Developments Insured by Fannie Mae
          2. 2021 Sample Fannie Mae Terms For DUS Loans
          3. Related Questions
          4. Get Financing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →

Janover: Your Partner in Growth

At Janover, we offer a wide range of services tailored to your unique needs. From commercial property loans and LP management to business loans and services for lenders, we're here to help you succeed.

Learn more about Janover →
Commercial Property Loans

Get the best CRE financing on the market.

Explore Financing Options →
LP Management

Syndicate deals on autopilot with Janover Connect.

Discover LP Management →
Business Loans

Match with the right kind of loan, in record time.

Find Business Loans →
For Lenders

Supercharge your loan pipeline. Unlock more deals.

Boost Your Loan Pipeline →
Apartment Loans

Apartment Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Commercial Real Estate Loans, SBA7a Loans, HUD Loans, Janover Insurance, Janover Pro, Janover Connect, and Janover Engage.

Janover Tech Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487
(561) 556-9997 
hello@apartment.loans

Loan Types

Bank Loans
CMBS
Construction Loans
Fannie Mae
Freddie Mac
HUD/FHA Apartment Loans
Commercial Loan Rates
For Commercial Mortgage Brokers

Site Information

Privacy Policy
Terms of Use


For Commercial Mortgage Brokers

This website is owned by a company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

This website utilizes artificial intelligence technologies to auto-generate responses, which have limitations in accuracy and appropriateness. Users should not rely upon AI-generated content for definitive advice and instead should confirm facts or consult professionals regarding any personal, legal, financial or other matters. The website owner is not responsible for damages allegedly arising from use of this website's AI.

Copyright © 2025 Janover Tech Inc. All rights reserved.

+

Fill out the form below and get the pricing and terms banks can't compete with.