Fannie Mae Bulk Financing for Groups of Multifamily Properties

Fannie Mae Insured Loans for Multiple Properties, With Supplemental Financing and Expansion Capabilities 

For major investors and developers looking to finance a large group of multifamily projects, taking out an individual loan for each individual property can be a tedious affair. Fortunately, with Fannie Mae Bulk Delivery Loans, you don't have to. Designed for groups of properties that need a minimum of $55 million in financing, Bulk Delivery Loans offer terms of between 5-15 years, fixed and variable-rate loan options, and LTVs of up to 80% (depending on the specific asset class and product type).

Fannie Mae Bulk Delivery Loans are available for all asset classes, including standard multifamily developments, seniors housing, student housing, cooperative apartments, and manufactured housing communities. Plus, like many other types of Fannie Mae multifamily loans, these loans are non-recourse, and individual loans fully assumable with lender approval (and the fulfillment of all terms of the Bulk Delivery loan agreement.) 



Sample Fannie Mae Terms For Bulk Delivery Loans

Size:  $55 million minimum, with unlimited capacity for expansion 

Terms:  5-15 year loans available for maturity laddering 

Amortization:  Interest-only and amortizing loans available (based on property performance) 

Interest Rates:  Fixed and variable-rate loan options available 

Interest Rate Caps:  Typically required for all variable-rate loans, and can be purchased from a third party provider (borrowers may also use other, approved hedging arrangements) 

Maximum LTV80% 

Minimum DSCR 1.20x (depends on asset class and product type) 

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

Prepayment Penalty: Partially pre-payable debt, yield maintenance and declining prepayment premium options available

Eligible Properties:  All asset classes eligible, including standard multifamily properties, seniors housing, student housing, coopeartive apartments and manufactured housing communities (MHCs) 

Property Substitutions: 

Property substitutions are typically allowed when: 

  • The substitute property has a value equal to or greater than the greater of:
    • The property being released (immediately before release) 
    • The original value of the property being released
  • OR, the substitute property has net operating income equal to or more than the greater of: 
    • The net operating income (NOI) of the property being released (immediately before release) 
    • The original NOI of the released property 

Advantages:

  • Competitive interest rates
  • Loans are non-recourse
  • 30-180 day rate locks (streamlined rate locks also available) 
  • Supplemental financing is available
  • Fast closings 
  • Expansion allows quick addition of new properties

Disadvantages:

  • Requires third-party reports including an Appraisal, a Property Condition Assessment and a Phase I Environmental Assessment 
  • Due diligence fee of $1500 per property 
  • 3 basis points structuring fee on each advance 
  • Other fees may apply