Fannie Mae Multifamily Cooperative Apartment Financing 

Fannie Mae Insured Multifamily Loans for Cooperate Apartment Buildings

Cooperative buildings, in which the residents collectively own the property together, can be notoriously difficult to finance. However, Fannie Mae has a loan product that can help-- the Fannie Mae Cooperative Apartment Loan. Starting at between $750,000 and $1 million, this loan offers a maximum LTV of 55% and a fixed-rate term of between 5 and 30 years. Just like its sibling, the Fannie Mae DUS Loan, the Fannie Mae Cooperative Apartment Loan offers competitive interest rates, is mainly non-recourse, and is fully assumable (with lender approval.) 

To learn more, check out our official Fannie Mae Multifamily Cooperative Properties Product Sheet or keep reading below for an in-depth explanation of their cooperative apartment financing program.

Sample Fannie Mae Terms For Multifamily Cooperative Apartment Loans

Size:  $750,000 to $1 million minimum, no maximum

Terms:  5-30 year fixed-rate loan terms available

Amortization:  Up to 30 years

Maximum LTV55% 

Minimum DSCR 1.00x (actual operations), 1.55 (market rents) 

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

Prepayment Options:  1% or yield maintenance, whichever is greater 

Commercial Limits:  Some commercial space is allowed, but can vary based on specific project 

Eligible Properties:  

  • Must typically be managed by an property management firm with experience managing similar properties

  • The cooperative organization must charge enough maintenance fees to achieve a balanced budget

  • The cooperative must maintain a reserve balance of at least 10% of the property's annual maintenance fees

  • In general. the Sponsor cannot own more than 40% of the property's units


  • Competitive interest rates

  • Most loans are non-recourse

  • Supplemental loans are allowed

  • 30- 180 day rate locks available after commitment (extended rate locks also available)

  • Loans are fully assumable with lender approval


  • Requires replacement reserves ($250 per unit minimum)

  • Typically requires 85% physical occupancy and 70% economic occupancy 90 days before closing

  • Requires third-party reports including an Appraisal, Property Condition Assessment, and a Phase I Environmental Assessment

  • Requires a $12,500 application deposit and a $3,000 processing fee