Fannie Mae Fixed-Rate Multifamily Financing Options

Fannie Mae Insured Multifamily Loans for Apartment Buildings and Multifamily Properties

Fannie Mae Fixed-Rate financing is one of the most effective ways to acquire or refinance a multifamily property. With incredibly flexible loan terms and amortizations up to 30 years, competitive interest rates, and a wide variety of eligible properties, its no wonder that Fannie Mae's Fixed-Rate Loans are so popular. These loans have an LTV allowance of up to 80% for conventional properties, and eligible property types include stabilized conventional properties, seniors housing properties, manufactured housing communities, student housing developments, and Multifamily Affordable Housing (MAH) developments. Plus, just like many other Fannie Mae multifamily loans, Fannie Mae Fixed-Rate Loans are mostly non-recourse and are fully assumable with lender approval. 



Sample Fannie Mae Terms For Fixed-Rate Multifamily Loans

Size:  Varies

Terms:  5-30 years 

Amortization:  Up to 30 years

Maximum LTV:  80% for conventional properties (other properties vary by asset class)

Minimum DSCR 1.25x for conventional properties (other properties vary by asset class)

Recourse:  Most loans above $750,000 are non-recourse with standard “bad boy” carve-outs

Prepayment Options:   Yield maintenance or prepayment premium options available

Eligible Properties: 

  • Stabilized conventional properties, seniors housing properties, manufactured housing communities, student housing developments, and Multifamily Affordable Housing (MAH) developments
  • Properties must have 5+ units (50+ pad sites for manufactured housing communities) 
  • Borrower must be credit-worthy and a U.S.-owned single-asset entity (indirect foreign ownership interest allowed with proper structuring) 

Advantages:

  • Very competitive interest rates 
  • Up to 80% LTV 
  • Most loans are non-recourse 
  • 30- 180 day rate locks available (streamlined rate locks also available) 
  • Loans are assumable with lender approval 

Disadvantages:

  • Requires replacement reserves 
  • Requires third-party reports including a property appraisal and a Phase I Environmental Assessment