Fannie Mae Multifamily Financing for Recently Rehabilitated Properties

Fannie Mae Insured Supplemental Loans for Moderately Rehabilitated Apartment Buildings and Multifamily Properties 

If you own a property that's recently undergone a moderate rehabilitation with Fannie Mae financing, and you need more funds, perhaps for additional improvements, a Fannie Mae Moderate Rehabilitation Supplemental Loan could be a great fit. Fannie Mae Moderate Rehabilitation Supplemental Loans have terms of between 5 and 30 years, and amortizations of up to 30 years, though they must end at the same time as the original moderate rehabilitation loan. These loans have a combined LTV allowance up to 75% (though this may be larger for affordable properties), are non-recourse, and are fully assumable with lender approval. 

Sample Fannie Mae Terms For Moderate Rehabilitation Supplemental Loans

Size:  Varies

Terms:  10-30 year loan terms available, supplemental loans must end at the same time as the original mortgage loan 

Amortization:  Up to 30 years, interest-only loans are available 

Interest Rates:  Fixed and adjustable-rate loans available 

Maximum LTVCombined LTV of up to 75% (may be higher for affordable properties) 

Minimum DSCR Combined DSCR as low as 1.25x (may vary due to asset class and how proceeds are used)  

Recourse:  Loans are non-recourse with standard “bad boy” carve-outs 

Rehab Requirements: Property improvements must average at least $10,000/unit 

Eligible Borrowers:  Borrowers must typically be U.S.-based single asset entities

Eligible Properties: 

  • Must be a stabilized property, can include multifamily affordable housing properties, student housing, seniors housing, and manufactured housing communities

  • Must already have a original Fannie Mae mortgage for moderate rehabilitation

  • Fannie Mae must be the only debt-holder on the property


  • Competitive interest rates

  • Loans are non-recourse

  • Standard rate locks available

  • Lower cost than refinancing

  • Not subjected to Fannie Mae's "one supplemental loan" rule


  • Requires third-party reports including a Property Condition Assessment, Appraisal, and Phase I Environmental Assessment (may not be required in certain circumstances)