Fannie Mae Near-Stabilization Execution Financing

Nearly Stabilized Apartment Building and Multifamily Development Execution Financing Insured by Fannie Mae

For investors looking for a source of low-rate, non-recourse permanent financing to get a recently built or renovated multifamily property through the lease-up period, Fannie Mae’s Near-Stabilization Execution Loan might be just the right solution. Designed for newly constructed or recently renovated properties that are expected to achieve stabilized occupancy within 120 days, Near-Stabilization Execution Loans are an effective loan option for investors with properties that are currently being financed with a short-term construction or renovation loan, and want to switch to a permanent financing option.

Fannie Mae Near-Stabilization Execution Loans loans offer a maximum LTV of up to 75%, fixed and variable-rate terms between 5 and 12 years, and amortizations of between 5 and 30 years. Like many other Fannie Mae multifamily products, these loans offer competitive interest rates and are non-recourse. Additionally, Near-Stabilization Execution Loans are fully assumable (with lender approval and a 1% fee) and are available for both affordable and market-rate properties.

Sample Fannie Mae Terms For Near-Stabilization Execution Loans

Size: Starting at $10 million

Terms: 5, 7, 10, and 12 year fixed and variable-rate loan terms available

Amortization: 5-30 years, after a 12-month interest-only loan period. The interest-only loan period may be extended in some circumstances.

MaximumLTV: Up to 75% for conventional properties, up to 90% LTV/LTC for affordable properties

MinimumDSCR: Targeted DSCR of 1.25x, or targeted DSCR of 1.15x for multifamily affordable housing (MAH) properties (targeted DSCR being the DSCR deemed possible with 4 months of rate lock, as determined by Fannie Mae and the lender)

Recourse: Loans are non-recourse with standard carve-outs for fraud and other bad acts

Prepayment Options: Yield maintenance or declining prepayment premiums

Occupancy Requirement: 75% physical occupancy, 60% economic occupancy

Eligible Borrowers: Borrowers should be in a strong financial position and have experience with successful lease-ups in the past. Single Asset Entities are preferred by many lenders, but may or may not be required.

Eligible Properties:

  • Conventional and Multifamily Affordable Housing (MAH) developments
  • Partially leased, recently built, or newly renovated properties


  • Competitive interest rates
  • Loans are non-recourse
  • 30- 180 day rate locks available after commitment (streamlined rate locks also available)
  • Supplemental financing allowed after 12 months
  • Loans are fully assumable with lender approval and 1% fee


  • Requires third-party reports including an Appraisal, Property Condition Assessment, and a Phase I Environmental Assessment
  • Requires a $12,500 application deposit and a $3,000 processing fee
  • Requires a 1% origination fee
  • Good faith deposit of 2% required at rate lock, which is refundable after closing