FHA Risk Sharing for Affordable Fannie Mae Financed Properties

FHA Standard Risk Sharing Execution for Fannie Mae Financed Multifamily Affordable Housing (MAH) Developments 

When it comes to financing Multifamily Affordable Housing (MAH) properties with Fannie Mae loans, investors have a lot of options. However, if they want to save the most money, they might want to consider using Fannie Mae's Standard FHA Risk Sharing Execution, which can help reduce loan pricing while maintaining the efficiency of the traditional Fannie Mae borrowing process. Fannie Mae's Standard FHA Risk Sharing Execution provides a variety of flexible options-- and with loan terms of between 15 and 40 years and LTV allowances of up to 90% "as stabilized," this program is flexible (and generous) enough to help a wide variety of multifamily borrowers gain a financial edge. 

Sample Fannie Mae Terms For FHA Risk Sharing Execution

Size:  No set minimum or maximum, but loans over $50 million required HUD approval 

Terms:  15- 40 years 

Amortization:  Up to 40 years, 30 years for balloon loans

Interest Rates:  Fixed-rate only 

Maximum LTVUp to 80% for existing properties, up to 90% for to-be-built properties "as stabilized" 

Minimum DSCR 1.15x for existing properties- 1.20x for to-be-built properties "as stabilized" 

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

Prepayment Penalty: Flexible prepayment options available

Eligible Properties: 

  • Multifamily Affordable Housing (MAH) properties with rent/income restrictions

  • Rent/income restrictions must remain for the entire term of the loan


  • Lower pricing than traditional Fannie Mae loans

  • Loans are non-recourse

  • 30-180 day rate locks available

  • Loans are assumable (with lender approval)


  • Requires third-party reports including a property condition assessment and a Phase I Environmental Assessment

  • Requires replacement reserves

  • HUD subsidy layering reviews may be required in some situations (including certain LIHTC transactions, properties with HAP Section 8 contracts, and properties using soft debt via state and local HOME funds)