Fannie Mae Structured Adjustable-Rate Financing for Multifamily Properties  

Fannie Mae Insured ARM Loans for Large Apartment Buildings and Multifamily Developments

If you're a multifamily investor looking for a large, adjustable-rate loan for an apartment building or multifamily property, a Fannie Mae Structured ARM could be a great fit. With a minimum loan amount of $25 million, the Structured ARM is designed to finance large multifamily properties, and, with a generous minimum DSCR requirement of 1.00x (at the maximum interest rate), many multifamily investors are finding that Fannie Mae Structured ARMs have the flexibility they need. Plus, Structured ARMs are fully non-recourse, and are fully assumable (with lender approval and a 1% fee.) 

To learn more, check out our official Fannie Mae Structured ARM Product Sheet or keep reading below for an in-depth explanation of Fannie Mae’s Structured ARM loan program.

Sample Fannie Mae Terms For Structured ARM Loans

Size:  $25 million minimum loan amount 

Terms:  5, 7, or 10 years 

Amortization:  Up to 30 years 

Interest Rate: Based on the 1-month or 3-month LIBOR, both convertible and non-convertible options are available  

Interest Rate Cap: No built-in caps, borrowers need to purchase an interest-rate cap from an approved provider. Initial interest rate caps must be at least 4 years, but, if the interest rate cap is smaller than the loan term, the borrower must put funds in escrow monthly for the next cap. 

Maximum LTVUp to 75%

Minimum DSCR 1.00 (at max. interest rate) 

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

Prepayment Options:  1 year lockout, then a 1% prepayment premium or declining prepayment premium 

Occupancy Requirements: 85% physical occupancy, 70% economic occupancy

Commercial Space Limits: Commercial space must be no more than 35% of the net rentable area and must produce no more than 20% of the property's income

Eligible Properties: Properties must be stabilized; can include market rate, affordable, student housing, military housing, seniors housing, and manufactured housing community properties


  • Competitive interest rates

  • Loans are non-recourse


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

  • Requires replacement reserves (minimum of $250/unit per year)

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

  • 1% origination fee also required

  • Does not allow for supplemental financing before conversion to a fixed-rate loan

  • Only 30 day rate lock commitments are available