Fannie Mae Standard DUS Multifamily Financing Options

Fannie Mae Multifamily Loans for Apartment Buildings and Multifamily Developments

The Fannie Mae DUS loan is one of the most popular multifamily loan options in the industry, and, with a minimum loan size of $3 million+, is typically used for the financing of larger multifamily developments and apartment buildings. Just like most other Fannie Mae multifamily loan options, Fannie Mae DUS loans offer competitive interest rates, are mainly non-recourse, and are fully assumable (with lender approval.) However, unlike many other Fannie Mae multifamily loans, Fannie Mae DUS loans are typically balloon loans (not fully amortizing), and offer both fixed and variable rate financing options. Fannie Mae DUS loans are also available for the refinancing and cash out refinancing of multifamily properties.  

Keep reading below to learn more, or click here to download our easy-to-read Fannie Mae DUS loan term sheet.

Sample Fannie Mae Terms For DUS Loans

Size:  $3 million+ (no set maximum, but smaller loans may be available on a case-by-case basis) 

Terms:  5, 7, 10, 12, 15, 18, 20, 22, 25, and 30 year fixed-rate loan terms available, variable-rate (with option to convert to fixed-rate) and interest-only loan options are also available

Amortization:  Up to 30 years, most loans are balloon loans, hybrid options may be available for a fee 

Maximum LTV:  80%, 75-80% for cash-out refinances 

Minimum DSCR 1.25x 

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

Prepayment Options:   Yield maintenance or 1% prepayment penalty, whichever is larger

Credit Requirements:  Credit score of 680+ typically required (this may be somewhat flexible, depending on the situation) 

Eligible Borrowers:  Borrowers must typically be a U.S. bankruptcy-remote, single asset Single Purpose Entity (SPE), though this may vary by lender. Partial, indirect foreign ownership is allowed with proper structuring. 

Eligible Properties: 

Properties with 5+ units are eligible for Fannie Mae DUS loans, including: 

  • Town homes

  • Co-ops

  • Mixed-use commercial/residential properties

  • Condos

  • Properties with tenant-based Section 8 contracts

However, some property types are ineligible for Fannie Mae DUS loans, including: 

  • Properties with a homeowner's association (HOA)

  • Fractured ownership condos

  • Housing Assistance Program properties (these are eligible for Fannie Mae Multifamily Affordable Housing Loans)

  • Non-contiguous town homes or duplexes (these may be eligible with a waiver, but that can be difficult to obtain)

  • New construction developments or properties that require substantial rehabilitation

  • Properties involving a healthcare component


  • Very competitive interest rates

  • Up to 80% LTV

  • Most loans are non-recourse

  • Supplemental loans are permitted after 12 months

  • 30- 180 day rate locks available after commitment (some lenders may allow rate locks of up to 1 year)

  • Mezzanine financing is available

  • Interest-only payment options are also available

  • Loans are assumable with lender approval


  • Requires replacement reserves

  • Typically requires 85% physical occupancy, 80% economic occupancy for 90 days before closing

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

  • Requires a $20,500 application deposit and a $3,000 processing fee

  • Absentee owners typically need to hire third-party management, and need a strong track record in the multifamily industry (local owners typically do not)

  • Subordinate debt is not allowed

  • Often requires a credit score of 680 (though this may be flexible)