FANNIE MAE DUS®
DUS Mortgage Loans
BENEFITS
- Flexible loan terms.
- Competitive pricing.
- Certainty of execution.
- Speed in processing and underwriting.
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ELIGIBILITY
- Existing, stabilized Conventional Properties, Multifamily Affordable Housing Properties, Seniors Housing Properties, Student Housing Properties, and Manufactured Housing Communities.
- Properties with a minimum of five units (50 pad sites for Manufactured Housing Communities).
- Credit-worthy single-asset U.S. borrower with U.S. ownership.
- Borrowers may have indirect foreign ownership interests, subject to proper structuring of the borrowing entity and its parent.
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TERM
5 – 30 years.
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AMORTIZATION
Up to 30 years.
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INTEREST RATE
Fixed- and variable-rate options available.
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MAXIMUM LTV
Varies by asset class and product type.
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MINIMUM DSCR
Varies by asset class and product type.
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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.
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SUPPLEMENTAL FINANCING
Supplemental loans are available.
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PREPAYMENT AVAILABILITY
Flexible prepayment options available including yield maintenance and declining prepayment premium.
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RATE LOCK
30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.
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ACCRUAL
30/360 and Actual/360.
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RECOURSE
Non-recourse execution is available with standard carve-outs for “bad acts” such as fraud and bankruptcy.
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ESCROWS
Replacement reserve, tax, and insurance escrows are typically required.
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THIRD-PARTY REPORTS
Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.
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ASSUMPTION
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
