Eligible Properties:

• Conventional multifamily properties, Multifamily Affordable Housing (MAH), seniors housing properties, and student housing developments with existing Fannie Mae loans
• Bond Credit Enhancement transactions are permitted with Fannie Mae approval

Timing: Loans typically close between 45 and 60 days after initial application

Advantages:

• Competitive interest rates
• Allows the borrower to access the equity in their property without refinancing
• Streamlined documentation/underwriting process
• Most loans are non-recourse
• 30- 180 day rate locks available after commitment (streamlined rate locks also available)
• Loans are fully assumable with lender approval and a 1% fee

Disadvantages:

• Requires third-party reports including an Appraisal, a Property Condition Assessment, and a Phase I Environmental Update. A Seismic Report may also be required if the property is located in Seismic Zones 3 or 4.
• Typically requires $10,000 in lender fees (including third-party reports, though this may vary by lender)
• Often requires between $8,000 and $12,000 in legal fees
• Requires a $20,500 application deposit
• Requires a 1% approval fee (for non-recourse loans)
• Not available for Fannie Mae loans with remaining loan terms of less than 5 years
• 2% deposit typically required at rate lock (refunded after Fannie Mae purchases the loan, usually around 30 days after closing)

In this article:

1. Supplemental Loans for multifamily investors insured by Fannie Mae
2. Sample Fannie Mae Terms For Multifamily Supplemental Loans
3. Get Financing