Fannie Mae Reduced Occupancy Affordable Rehab (ROAR) Financing

Fannie Mae Rehabilitation Financing Loans for Affordable Multifamily Properties

Fannie Mae ROAR Loans

Owners of multifamily affordable housing (MAH) properties looking to make some significant renovations might find the Reduced Occupancy Affordable Rehab (ROAR) program has just the terms they’re looking for. ROAR loans offer rehab funds of up to $120,000 per unit, a “stabilized” LTV allowance of up to 90%, and a “stabilized” minimum DSCR of 1.15x. The ROAR program even has a reasonable 50% occupancy and 1.00x DSCR requirement for the rehabilitation period. Overall, the program has some pretty generous terms and reduces stress for the borrower and lender alike.

2021 Sample Fannie Mae Terms For Reduced Occupancy Affordable Rehab (ROAR) Loans

Size: $5 million minimum, no maximum

Use: Acquisitions and refinances

Terms: 5-30 years

Amortization: Up to 35 years

Interest Rate: Fixed-rate for most loans, variable-rate financing available only for Credit Enhancement Mortgage Loan bond transactions. Loans are interest-only during the rehab period.

MaximumLTV: 80%, 90% "as stabilized" for Low Income Housing Tax Credit (LIHTC) properties

MinimumDSCR: 1.15-1.20x

Prepayment Penalty: Yield maintenance or declining prepayment options

Rehab Period: Rehabilitation must be complete within 12-18 months

Eligible Borrowers: Borrowers should have demonstrated experience owning and operating Multifamily Affordable Housing (MAH) properties

Eligible Properties: Stabilized Multifamily Affordable Housing (MAH) properties with planned renovations of up to $120,000/unit


  • Allows borrowers to execute substantial rehabilitation without the need for a construction loan
  • Fast underwriting/approval process
  • Flexible amortizations
  • Competitive interest rates
  • 90% LTV allowance
  • Loans are Interest-only during the rehab period


  • Only available for Multifamily Affordable Housing (MAH) properties
  • Properties must be fully stabilized within 18 months of loan origination