Fannie Mae Financing for Military Housing

Fannie Mae Insured Multifamily Loans for Military Housing Developments

The U.S. military risks their lives overseas to protect our freedoms-- but, when they're back home, service members, especially those with families, need quality housing. If you're considering purchasing a multifamily property in an area with a market significantly influenced by a military base, or with a military tenant concentration of more than 20%, a Fannie Mae Military Housing Loan could be the perfect solution. Much like many other Fannie Mae multifamily loan options, Fannie Mae military housing loans offer competitive interest rates, are mainly non-recourse, and are fully assumable (with lender approval.)

Sample Fannie Mae Terms For Military Housing Loans

Size: $1 million+ (no set maximum)

Terms: Vary, with both fixed and variable-rate options available

Amortization: 30 years

Maximum LTV: 75%

Minimum DSCR: 1.30x

Non-recourse with standard “bad boy” carve-outs

Prepayment Options: Yield maintenance or 1% prepayment penalty, whichever is larger

Advantages:

Very competitive interest rates
Up to 75% LTV
Most loans are non-recourse
Supplemental loans allowed

Disadvantages:

Requires replacement reserves
Requires 85% occupancy or 80% economic occupancy for the 90 days before closing
Only available in select markets

Multifamily.loans

Multifamily.loans is the premier capital markets solution for multifamily and apartment lending across the nation; intimately familiar with the ins and outs of all components of apartment building finance with strengths in GSE finance, FHA, CMBS, Bank, Life Companies and more.

Beyond our specialities in traditional low-cost non-recourse multifamily finance, Multifamily.loans maintains unique relationships with an array of hedge funds, family offices and financiers which makes it possible to arrange transactions with multiple pieces such as bridge debt, mezzanine loans, and preferred equity.