Fannie Mae Standard FHA Risk Sharing

FHA Standard Risk Sharing Execution for Fannie Mae Financed Multifamily Affordable Housing (MAH) Developments

Investors looking to save money when it comes to financing Multifamily Affordable Housing (MAH) properties should consider their Fannie Mae apartment loan options. In particular, Fannie Mae's Standard FHA Risk Sharing Execution can help reduce loan pricing while maintaining the efficiency of the traditional Fannie Mae borrowing process. Fannie Mae's Standard FHA Risk Sharing Execution allows LTVs of up to 90% "as stabilized", and provides a variety of flexible options with loan terms of between 15 and 40 years. Additionally, these loans are non-recourse, and are fully assumable (with lender approval).

2021 Sample Fannie Mae Terms For FHA Risk Sharing Execution

Size: No set minimum or maximum, but loans over $50 million required HUD approval

Terms: 15- 40 years

Amortization: Up to 40 years, 30 years for balloon loans

Interest Rates: Fixed-rate only

Maximum LTV: Up to 80% for existing properties, up to 90% for to-be-built properties "as stabilized"

Minimum DSCR: 1.15x for existing properties- 1.20x for to-be-built properties "as stabilized"

Recourse: Loans are non-recourse with standard “bad boy” carve-outs

Prepayment Penalty: Flexible prepayment options available

Eligible Properties:

  • Multifamily Affordable Housing (MAH) properties with rent/income restrictions
  • Rent/income restrictions must remain for the entire term of the loan


  • Lower pricing than traditional Fannie Mae loans
  • Loans are non-recourse
  • 30-180 day rate locks available
  • Loans are assumable (with lender approval)


  • Requires third-party reports including a property condition assessment and a Phase I Environmental Assessment
  • Requires replacement reserves
  • HUD subsidy layering reviews may be required in some situations (including certain LIHTC transactions, properties with HAP Section 8 contracts, and properties using soft debt via state and local HOME funds)