Multifamily Loans for Apartment Buildings and Multifamily Properties Insured by Fannie Mae
When it comes to financing for apartment properties, it doesn’t get more standard than Fannie Mae Fixed-Rate Apartment Loans. With incredibly flexible loan terms, amortizations between 5 and 30 years, incredibly competitive interest rates, and a plethora of eligible properties, it’s no wonder that Fannie Mae's Fixed-Rate product is so popular. These loans have an LTV allowance of up to 80% for conventional properties, and like many other Fannie Mae multifamily loans, are mostly non-recourse and are fully assumable with lender approval. Fannie Mae Fixed-Rate Multifamily Loans can finance property types including seniors housing, manufactured housing communities, Multifamily Affordable Housing (MAH) developments, student housing properties, and more.
2021 Sample Fannie Mae Terms For Fixed-Rate Multifamily Loans
Size: Varies
Terms: 5-30 years
Amortization: Up to 30 years
Maximum LTV: 80% for conventional properties (other properties vary by asset class)
Minimum DSCR: 1.25x for conventional properties (other properties vary by asset class)
Recourse: Most loans above $750,000 are non-recourse with standard “bad boy” carve-outs
Prepayment Options: Yield maintenance or prepayment premium options available
Eligible Properties:
- Stabilized conventional properties, seniors housing properties, manufactured housing communities, student housing developments, and Multifamily Affordable Housing (MAH) developments
- Properties must have 5+ units (50+ pad sites for manufactured housing communities)
- The borrower must be credit-worthy and a U.S.-owned single-asset entity (indirect foreign ownership interest allowed with proper structuring)
Advantages:
- Very competitive interest rates
- Up to 80% LTV
- Most loans are non-recourse
- 30- 180 day rate locks available (streamlined rate locks also available)
- Loans are assumable with lender approval
Disadvantages:
- Requires replacement reserves
- Requires third-party reports including a property appraisal and a Phase I Environmental Assessment