Flexible Loan Terms for Existing and Stabilized Conventional Properties
The Fannie Mae Fixed Rate program offers flexible loan terms with predictable payments for existing, stabilized conventional properties that are:
- Multifamily Affordable Housing properties;
- Seniors Housing properties,
- Student Housing properties, or
- Manufactured Housing Communities.
The property must have a minimum of five units. Borrowers may have indirect foreign ownership interests, subject to proper structuring of the borrowing entity and its parent.
Term Sheet for Fannie Mae Fixed Rate
| Term |
5-30 years. |
| Amortization |
Up to 30 years. |
| Maximum LTV |
80% for conventional properties. See the specific asset class or product type term sheet for details. |
| Minimum DSCR |
1.25x for conventional properties. See the specific asset class or product type term sheet for details. |
| Property Considerations |
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 Financing |
Supplemental loans are available. |
| Prepayment Availability |
Loans may be voluntarily prepaid upon payment of yield maintenance or prepayment premium. |
| Rate Lock |
30- to 180-day commitments. Borrowers may lock the rate with the streamlined rate lock option. |
| Accrual |
30/360 and Actual/360. |
| Recourse |
Non-recourse execution is available for most loans greater than $750,000. Standard carve-outs required for “bad acts” such as fraud and bankruptcy. |
| Escrows |
Replacement reserve, tax, and insurance escrows are typically required. |
| Third-Party Reports |
Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment. |
| Assumption |
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience. |