Fannie Mae Multifamily Affordable Housing Financing

Loans for Multifamily Affordable Housing Projects insured by Fannie Mae

Despite the larger implications, the need for affordable housing has only grown in the past couple of years. Savvy investors know that there is a solid market for providing American families with housing opportunities that they can actually afford. Many investors interested in providing affordable housing solutions tend to utilize the Fannie Mae multifamily affordable housing loan.

These loans aren't only available for property acquisitions either; they're also available for refinancing, and can be given to properties already taking advantage of Low Income Housing Tax Credits (LIHTCs), properties with a Section 8 contract, or properties with a Housing Assistance Payment (HAP) contract. Fannie Mae Multifamily Affordable Housing Loans begin at $750,000 and allow maximum LTVs of between 80-90%, making them an incredibly attractive option for investors. Like most other Fannie Mae multifamily loan options, they offer competitive interest rates, are mainly non-recourse, and are fully assumable (with a 1% fee and lender approval.)

Sample Fannie Mae Terms For Affordable Multifamily Housing Loans

Size: From $750,000+ with no set maximum

Terms: 10-30 year fixed-rate loan terms

Use: Acquisitions and refinances

Amortization: 30 years

MaximumLTV: 80-90%

MinimumDSCR: 1.15x

Recourse: Most loans are non-recourse with standard carve-outs

Prepayment Options: Yield maintenance or 1% prepayment penalty, whichever is larger

Affordability Requirements: In most cases, at least 20% of the building's units must be rented to families earning 50% or less than the Area Median Income (AMI), or at least 40% of a building's units must be rented to families earning 60% or less than the AMI.


  • Very competitive interest rates
  • Up to 90% LTV for some projects
  • Most loans are non-recourse
  • Supplemental loans are permitted after 12 months
  • 30- 180 day rate locks available after commitment, early and extended rate lock options are also available
  • Loans are fully assumable (with lender approval and 1% fee)
  • Funded or unfunded forward commitments may also be available


  • Requires replacement reserves
  • Typically requires 85% physical occupancy, 70-80% economic occupancy for 90 days before closing
  • Requires third-party reports including Appraisal, Physical Needs Assessment, and Phase I Environmental Assessment
  • Requires a $12,500 application deposit and a $3,000 processing fee
  • 2% rate lock fee required (refunded after loan closing)
  • Commitment fees may also be required