Fannie Mae Rehabilitation Financing Loans for Affordable Multifamily Properties

Renovate an Affordable Multifamily Property with a Fannie Mae Insured Loan

If you own a Multifamily Affordable Housing (MAH) property, and you want to make significant renovations, you don't necessarily need to turn to a construction loan. Instead, you might want to consider a Fannie Mae Reduced Occupancy Affordable Rehab (ROAR) loan. ROAR loans offer generous terms, including allowing rehab costs of up to $120,000 per unit, an up to 90% "stabilized" LTV allowance, and a "stabilized" minimum 1.15x DSCR. Plus, ROAR loans only require 50% occupancy and 1.00x DSCR during the rehabilitation period, making the process easier and less stressful for borrowers and lenders alike. 

To learn more, check out our official Fannie Mae Reduced Occupancy Affordable Rehab Product Sheet or keep reading below for an in-depth explanation of the ROAR financing program.

Sample Fannie Mae Terms For Reduced Occupancy Affordable Rehab (ROAR) Loans

Size:  $5 million minimum, no maximum 

Use:  Acquisitions and refinances 

Terms:  5-30 years 

Amortization:  Up to 35 years 

Interest Rate:  Fixed-rate for most loans, variable-rate financing available only for Credit Enhancement Mortgage Loan bond transactions. Loans are interest-only during the rehab period. 

Maximum LTV80%, 90% "as stabilized" for Low Income Housing Tax Credit (LIHTC) properties

Minimum DSCR 1.15-1.20x 

Prepayment Penalty: Yield maintenance or declining prepayment options

Rehab Period:  Rehabilitation must be complete within 12-18 months 

Eligible Borrowers:  Borrowers should have demonstrated experience owning and operating Multifamily Affordable Housing (MAH) properties

Eligible Properties:  Stabilized Multifamily Affordable Housing (MAH) properties with planned renovations of up to $120,000/unit 


  • Allows borrowers to execute substantial rehabilitations without the need for a construction loan

  • Fast underwriting/approval process

  • Flexible amortizations

  • Competitive interest rates

  • 90% LTV allowance

  • Loans are Interest-only during the rehab period


  • Only available for Multifamily Affordable Housing (MAH) properties

  • Properties must be fully stabilized within 18 months of loan origination