Fannie Mae MBS as Tax-Exempt Bond Collateral (M.TEB)
This type of financing allows for incredibly generous LTV allowances of up to 90% and interest-only loan options.
Better Financing Starts with More Options$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get QuotesFannie Mae Issued Taxable and Tax-Exempt Bonds for Financing the Rehabilitation of Affordable Multifamily Developments
If you're an investor looking to rehabilitate a Multifamily Affordable Housing (MAH) development, the Fannie Mae MBS as Tax-Exempt Bond Collateral (M.TEB) could be a great solution. M.TEB execution is available for both existing bond refunding and new bond issues for properties using 4% Low-Income Housing Tax Credits (LIHTCs). This type of financing allows for incredibly generous LTV allowances up to 90% and interest-only loan options, making it a flexible and affordable option for many investors.
To learn more, check out our official Fannie Mae MBS as Tax-Exempt Bond Collateral Product Sheet or keep reading below for an in-depth explanation of the M.TEB financing program.
Sample Fannie Mae Terms For MBS as Tax-Exempt Bond Collateral (M.TEB) in 2023
Size: No minimum or maximum loan size
Terms: 10-30 years
Amortization: Up to 35 years
Interest Rates: Fixed, variable-rate, and interest-only loan options available
Maximum LTV: Up to 90%
Minimum DSCR: 1.00x for Structured ARM, 1.15x for fixed-rate
Prepayment Penalty: Yield maintenance and declining prepayment premium options available
Eligible Properties:
4% LIHTC Properties
80-20s (deals in which 20% of the property is set aside for low income residents)
Refunding of existing bonds
Advantages:
Competitive interest rates (typically 0.20-0.25% better pricing than regular bond credit enhancement)
Up to 90% LTV allowance
Up to 35 year amortization
Interest-only options
Flexible structure and certainty of execution
Wide investor base
Tax-exempt or taxable interest allowed