Fannie Mae Fixed-Rate Multifamily Loans

The Baseline Every Other Agency Product Is Measured Against

Fannie Mae's fixed-rate mortgage loan is the default multifamily execution in the United States. Most of the specialty products on this site are this loan with one parameter moved. Understanding the baseline is what lets you tell whether a specialty execution is actually buying you anything.

Delivered through Fannie's Delegated Underwriting and Servicing network, the loan is originated, underwritten, and serviced by an approved DUS lender who retains a share of the loss risk. That risk retention is the reason the process moves as fast as it does. Your lender is not waiting for a committee in Washington to approve your deal.

Terms confirmed against the Fannie Mae Fixed-Rate Mortgage Loans term sheet at multifamily.fanniemae.com/financing-options/fixed-rate-mortgage-loans, fetched July 31, 2026. Fannie directs borrowers to the specific asset class or product term sheet for LTV and coverage detail on non-conventional property types.

Which Constraint Actually Binds?

Almost never the LTV. Run your own deal and you will usually find the 1.25x coverage test produces a smaller loan than the 80% value test, particularly when rates are high relative to cap rates.

Take a property with $1,000,000 of net operating income and a $16,000,000 value. Eighty percent LTV allows $12,800,000. Whether coverage allows that much depends entirely on the constant, and in a market where the constant sits above 7%, it usually does not. Our DSCR calculator and debt yield calculator will show you which test binds on your numbers before you go to application.

What Does Non-Recourse Actually Exclude?

The carve-outs, which agency documents call bad acts. Fraud, misappropriation of funds, bankruptcy filings, environmental misrepresentation, and unauthorized transfers all pierce the non-recourse shield and become personal obligations of the guarantor. Everything else, including a genuine market downturn that hands the lender the keys, stays with the property.

Note the floor: non-recourse is available for most loans greater than $750,000. Below that, expect recourse.

What Stabilized Means

Typically 90% physical occupancy held for 90 days before funding. That definition rules out lease-ups, heavy value-add projects mid-renovation, and any property that has just been repositioned.

Fannie will consider commitments on pre-stabilized properties case by case, and it publishes a separate execution for the specific case of a completed new development still filling up. See near-stabilization financing, which funds at 75% occupancy at rate lock.

What Moves the Terms From Here?

Layer the right product and the baseline changes in your favor. Green Rewards adds up to 5% more proceeds and a lower rate for committing to efficiency work. Affordable restrictions drop coverage to 1.20x. FHA Risk Sharing takes LTV to 90%. Small loans, seniors housing, and student housing each carry their own LTV and coverage grids.

Start with green financing and small loans, then work back to whichever product matches your property.

Fannie or Freddie?

On a stabilized conventional property both agencies will quote and the terms land close together. Freddie's conventional fixed-rate execution differs in prepayment structure, in how it handles securitization, and in the details of its supplemental rules. The right move is to price both. Start at Freddie Mac multifamily loans.

Send us the rent roll and trailing twelve. We will size the deal both ways and tell you which agency is buying your asset class this quarter.