Streamlined Refinancing for Fannie Mae  Multifamily Loan Borrowers

Refinance Your Fannie Mae Insured Multifamily Loan With The Choice Refinance Program 

Refinancing a Fannie Mae multifamily loan might sound like a challenge, but with the Fannie Mae Choice Refinance program, the process is easier than it's ever been. The Fannie Mae Choice Refinance program has an 80% LTV allowance, a minimum DSCR requirement of 1.25x, and has both fixed and adjustable-rate options, making it a flexible and versatile option for all kinds of Fannie Mae multifamily borrowers. Plus, the Choice Refinance program has reduced documentation requirements, leading to a significantly faster underwriting process and less hassles for both borrowers and lenders alike. In addition, Choice Refinance loans are non-recourse, and are fully assumable with lender approval and a 1% fee. 

Sample Fannie Mae Terms For Choice Refinance Loans

Size:  No minimum loan amount 

Terms:  5-30 years 

Amortization:  30 years (in most cases) 

Interest Rate: Both fixed and adjustable rate options available, interest-only loans also available in some cases 

Maximum LTV80%, 75% for cash-out 

Minimum DSCR 1.25x 

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

Prepayment Options:  Yield maintenance period/1% prepayment premium (may be waived once the yield maintenance period is finished) 

Occupancy Requirements: 85% physical occupancy, 70% economic occupancy

Eligible Properties:  Stabilized Fannie Mae-financed multifamily properties in good standing 


  • Faster underwriting/approval process

  • Less documentation required

  • Competitive interest rates

  • Loans are non-recourse

  • Supplemental financing available after 12 months

  • Rate locks available up to 180 days before closing

  • Loans are fully assumable with lender approval and 1% fee

  • Existing prepayment premiums (from old/pre-existing loan) may be reduced or waived in some situations. If it is not waived, the prepayment premium can be funded with the proceeds of the new Choice Refinance loan.


  • Usually requires new third-party reports including Appraisal, Physical Needs Assessment (though they may be streamlined for Choice Refinances). May or may not require a Phase I Environmental Assessment.

  • New title insurnace policy typically required

  • Requires replacement reserves (minimum of $250/unit per year)

  • 2% rate lock fee typically required (refunded after Fannie Mae purchases loan, usually around 30 days after closing)