Fannie Mae Military Housing Loans
Fannie Mae Military Housing Loans are non-recourse, have LTVs of up to 75%, and are designed for investors who want to acquire multifamily properties with a concentration of military residents.
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 Financing for Military Housing
When U.S. service members return home from overseas, they have a real need for quality housing — particularly those with families.
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 in 2023
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
Recourse: 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