Fannie Mae and Freddie Mac options offer speed and flexibility for your multifamily transactions.
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Fixed and floating interest rate options.
Certainty of execution and speed in processing and underwriting.
Non-recourse to key principals, subject to standard bad boy carve-outs.
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Existing, stabilized multifamily properties with a minimum of five units (or 50 pad sites for manufactured housing communities).
Asset classes include conventional market rate, affordable housing inclusive of Section 8, LIHTC, and bond credit enhancements, small balance multifamily, manufactured housing, student housing, and seniors housing properties inclusive of independent living, assisted living, and memory care.
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Credit-worthy single asset U.S. entity with U.S. ownership and no prior bankruptcies.
Borrowers can be for-profit or non-profit.
Borrowers may have indirect foreign ownership interests, subject to proper structuring of the borrowing entity and its parent.
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The maximum loan is based on the following tier parameters:
Tier 2: 80% LTV / 1.25x DSCR
Tier 3: 65% LTV / 1.35x DSCR
Tier 4: 55% LTV / 1.55x DSCR
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5 - 30 year term options.
Up to 30-year amortization.
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Competitive fixed and variable rate options available.
Interest only available on case-by-case basis.
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Replacement reserves, taxes, and insurance typically required.
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Loans may be voluntarily prepaid upon payment of yield maintenance for fixed rate loans and declining prepayment premium for variable rate loans.
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Standard party reports required including Appraisal, Phase 1 Environmental Site Assessment, and Capital Needs Assessment.
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Typically close within 45-60 days of engagement.
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Fully assumable, subject to review and approval of the proposed new borrower’s financial capacity and experience.
Properties must have stabilized occupancy (typically 90%+) for 90 days prior to funding. Loan commitments for pre-stabilized properties will be considered on a case-by-case basis.
Supplemental loans are available.
30- and 180-day rate lock commitments. Borrowers may lock the rate with Streamline Rate Lock option.