Tap to get financing
Multifamily Loans
Property Types
MultifamilyHealth Care & Senior LivingStudent HousingAffordable HousingMobile Home ParkOffice, Retail & More
Loan Options
Fannie MaeFreddie MacConstruction LoansLoans Under $1MFreddie Mac SBLFHA/HUD Multifamily LoansForeign National LoansCMBSBank LoansLife CompaniesBridge LoansHard MoneySoft MoneyMezzanine FinancingCrowdfundingSBA 504 LoansMezzanine Construction LoansUSDA 538 LoansFix and Flip LoansFractured Condo LoansDSCR LoansRefinance
Resources
BlogLoan DocsForms and TemplatesRatesLingoVideo LibraryMultifamily For SaleCommercial MortgagesFrequently Asked QuestionsBeginner's Guide
Calculators
Multifamily Mortgage CalculatorCap Rate CalculatorNOI CalculatorDSCR CalculatorLTV CalculatorDebt Yield CalculatorCash on Cash Return CalculatorYield Maintenance CalculatorIRR Calculator
About
About UsLeadershipTeamContactAffiliate Program (Coming Soon)We're Hiring
Get financing
Newly Published
Mar 20 at Multifamily Loans
Multifamily Minute Reader Reflections: How Will Bank Failures Impact Multifamily?
Mar 14 at Multifamily Loans
Multifamily Minute Reader Reflections: How Big Are We Buying?
Feb 27 at Multifamily Loans
Multifamily Minute Reader Reflections: When Do You Start the Refi Process?
Explore the Janover Network
Mar 17 at Commercial Real Estate Loans
Top 10 Commercial Real Estate Lenders of 2023
Mar 15 at Commercial Real Estate Loans
Top 4 Refinancing Loans for Industrial Real Estate in 2023
Feb 20 at Commercial Real Estate Loans
How to Set Rent Rates for Your Commercial Property in 2023
Was This Article Helpful?
Last updated on Jan 3, 2023
2 min read

Fannie Mae Supplemental Loans

Fannie Mae Supplemental Loans for Current Fannie Mae Multifamily Borrowers

Better Financing Starts with More Options Start Your Application and Unlock the Power of Choice. Click Here to Get Quotes →$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get Quotes
In this article:
  1. Fannie Mae Supplemental Financing 
  2. Sample Fannie Mae Terms For Multifamily Supplemental Loans in 2023
  3. Get Financing

Fannie Mae Supplemental Financing 

If you're an investor who currently owns a property financed with a Fannie Mae multifamily loan, but you want more funding, a Fannie Mae Supplemental Loan could be a fantastic option. Starting at a minimum of $500,000, these loans offer a maximum LTV of up to 75% and fixed-rate terms of between 5 and 30 years.

Just like other Fannie Mae multifamily loans, Fannie Mae Supplemental Loans offer competitive interest rates and are mainly non-recourse. Plus, non-recourse Supplemental Loans are fully assumable (with lender approval and a 1% fee.)

Typically, Fannie Mae borrowers are permitted to take out only one Supplemental Loan; however, if the loan is assumed by another party, a second Supplemental Loan is usually permitted. 

Sample Fannie Mae Terms For Multifamily Supplemental Loans in 2023

Size: $500,000 minimum

Terms: 5-30 year fixed-rate loan terms available, may or may not be coterminous with original Fannie Mae mortgage  

Amortization: Up to 30 years

Maximum LTV: 75% (may vary based on how proceeds are used) 

Minimum DSCR: 1.30x (may be more under certain conditions) 

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

Prepayment Options: Yield maintenance or defeasance 

Eligible Properties:  

  • Conventional multifamily properties, Multifamily Affordable Housing (MAH), seniors housing properties, and student housing developments with existing Fannie Mae loans

  • Bond Credit Enhancement transactions are permitted with Fannie Mae approval

Timing: Loans typically close between 45 and 60 days after initial application 

Advantages:

  • Competitive interest rates

  • Allows borrower to access equity in their property without refinancing

  • Streamlined documentation/underwriting process

  • Most loans are non-recourse

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

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

Disadvantages:

  • Requires third-party reports including an Appraisal, a Property Condition Assessment, and a Phase I Environmental Update. A Seismic Report may also be required if property is located in Seismic Zones 3 or 4.

  • Typically requires $10,000 in lender fees (including third-party reports, though this may vary by lender)

  • Often requires between $8,000 and $12,000 in legal fees

  • Requires a $20,500 application deposit

  • Requires a 1% approval fee (for non-recourse loans)

  • Not available for Fannie Mae loans with remaining loan terms of less than 5 years

  • 2% deposit typically required at rate lock (refunded after Fannie Mae purchases the loan, usually around 30 days after closing)

In this article:
  1. Fannie Mae Supplemental Financing 
  2. Sample Fannie Mae Terms For Multifamily Supplemental Loans in 2023
  3. Get Financing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

Multifamily Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

hello@multifamily.loans

Multifamily Loans

Beginner's Guide
Multifamily Refinance
Multifamily Mortgage Calculator
Current Rates
Commercial Mortgage Calculator

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2022 Janover Inc. All rights reserved.