Fannie Mae DUS Small Loans 

Fannie Mae Insured Multifamily Loans for Apartment Buildings and Multifamily Developments

While the Fannie Mae DUS loan is incredibly popular among multifamily investors, its $3 million minimum and lengthly documentation requirements means that it might not be the right loan for everyone. Fortunately, Fannie Mae also offers Fannie Mae DUS Small Loans, which have a minimum loan amount of $750,000-$1 million and a significantly streamlined application process. Just like its larger sibling, the Fannie Mae DUS Multifamily Standard Loan, the Fannie Mae DUS Small Loan offers competitive interest rates, is mainly non-recourse, and is fully assumable (with lender approval.) 

Sample Fannie Mae Terms For DUS Small Loans

Size:  $750,000- $1 million to $3 million ($5 million in major markets) 

Terms:  5-30 year fixed-rate loan terms available, adjustable-rate and hybrid ARM options also available 

Amortization:  Up to 30 years

Maximum LTV:  80% 

Minimum DSCR 1.25x 

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

Prepayment Options:  Yield maintenance or a declining prepayment premium

Commercial Limits:  Commercial space must be no more than 35% of the project's net rentable area and must contribute no more than 20% of its effective gross income


  • Very competitive interest rates 
  • Up to 80% LTV 
  • Most loans are non-recourse 
  • Supplemental loans are allowed after 12 months 
  • 30- 180 day rate locks available after commitment (extended rate locks also available) 
  • No processing fees (except with written approval) 


  • Requires replacement reserves ($250 per unit minimum) 
  • Typically requires 90% physical occupancy
  • Requires third-party reports including a property appraisal, reduced physical needs assessment and an environmental screen 
  • Requires a $10,000 application deposit