Fannie Mae Multifamily Near-Stabilization Execution Financing 

Fannie Mae Insured Loans for Nearly Stabilized Apartment Buildings and Multifamily Developments 

If you're an investor who owns a newly constructed or recently renovated property that's expected to achieve stabilized occupancy within 120 days, a Fannie Mae Multifamily Near-Stabilization Execution Loan could be a great choice. Starting at a minimum of $10 million, Near-Stabilization Execution Loans are an effective loan option for investors with properties that are currently being financed with a short-term construction or renovation loans, and want to switch to a permanent financing option. Fannie Mae Near-Stabilization Execution Loans loans offer a maximum LTV of up to 75% and fixed and variable-rate terms of between 5 and 12 years, with amortizations of between 5 and 30 years. Like many other Fannie Mae multifamily loans, these loans offer competitive interest rates and are non-recourse. Plus, Near-Stabilization Execution Loans are fully assumable (with lender approval and a 1% fee) and are available for both affordable and market-rate properties.  

To learn more, check out our official Fannie Mae Near-Stabilization Execution Product Sheet or keep reading below for an in-depth explanation of the Near-Stabilization financing program.

Sample Fannie Mae Terms For Near-Stabilization Execution Loans

Size:  $10 million minimum

Terms:  5, 7, 10, and 12 year fixed and variable-rate loan terms available

Amortization:  5-30 years, after 12-month interest-only loan period. Interest-only loan period may be extended in some circumstances. 

Maximum LTVUp to 75% for conventional properties, up to 90% LTV/LTC for affordable properties 

Minimum DSCR Targeted DSCR of 1.25x, or targeted DSCR of 1.15x for multifamily affordable housing (MAH) properties (targeted DSCR being the DSCR deemed possible with 4 months of rate lock, as determined by Fannie Mae and the lender) 

Recourse:  Loans are non-recourse with standard “bad boy” carve-outs for fraud and other bad acts 

Prepayment Options:  Yield maintenance or declining prepayment premiums

Occupancy Requirement:  75% physical occupancy, 60% economic occupancy 

Eligible Borrowers:  Borrowers should be in a strong financial position and have experience with successful lease-ups in the past. Single Asset Entities are preferred by many lenders, but may or may not be required. 

Eligible Properties:  

  • Conventional and Multifamily Affordable Housing (MAH) developments

  • Partially leased, recently built, or newly renovated properties


  • Competitive interest rates

  • Loans are non-recourse

  • 30- 180 day rate locks available after commitment (streamlined rate locks also available)

  • Supplemental financing allowed after 12 months

  • Loans are fully assumable with lender approval and 1% fee


  • Requires third-party reports including an Appraisal, Property Condition Assessment, and a Phase I Environmental Assessment

  • Requires a $12,500 application deposit and a $3,000 processing fee

  • Requires a 1% origination fee

  • Good faith deposit of 2% required at rate lock, which is refundable after closing