Fannie Mae Multifamily Mortgage

Fannie Mae is the largest single source able to provide financing for a wide variety of multifamily properties which includes:

• Affordable Housing — financing for housing that is rent- restricted and subsidized by federal, state or local government.

• Cooperative Apartments – financing for cooperative corporations

• Manufactured Housing — financing for land -leased manufactured housing parks and associated amenities

• Seniors Housing — financing for properties that include skilled nursing, independent living and assisted living facilities

• Student Housing — financing for apartment complexes built specifically for students, located close to major colleges and universities

Apartment building include high-rises and garden-style complexes. Each of these property types described above operational objective as a business, is to generate income.

Multifamily loans typically have terms of 5, 7 or 10 years with balloon payments required at the end of the term. Many also have a prepayment penalty if the loan is repaid within the first 3-5 years.

Loan amounts usually range from $1 million to $50 million. Fannie Mae categorizes "Small Loans" as loans less than $3 million across the country or under $5 million in high-cost markets like San Francisco, New York City and Los Angeles.

Fannie Mae Requirements for Multi-family properties :

• 80% loan -to - value ratio
• Debt service coverage ratio of 1.25 in most markets
• 20% equity investment from the borrower