FANNIE MAE DUS®
Small Loan Program
Fannie Mae’s Multifamily Mortgage Business offers a streamlined loan process for fixed and variable-rate Mortgage Loans up to $9 million nationwide.
BENEFITS
- Low cost of execution.
- Competitive rates.
- Delegated model provides Lenders and Borrowers speed of execution.
- Team with experience and scale to support this unique market.
- Single asset security allows the most flexibility in the market.
- Extensive experience serving the small loan market.
- Streamlined third-party reports.
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ELIGIBILITY
- Conventional Properties; Multifamily Affordable Housing Properties; Cooperative Properties (market rate); and Manufactured Housing Communities.
- Existing, stabilized multifamily Properties.
- Properties with 5 or more units.
- Loans for acquisition or refinance.
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LOAN AMOUNT
Up to $9 million nationwide.
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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-options available.
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Maximum LTV
80%.
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Minimum DSCR
1.25x.
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Supplemental Financing
Supplemental Mortgage Loans are available.
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Prepayment Availablity
Flexible prepayment options available, including yield maintenance and declining prepayment premium.
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Rate Lock
30- to 180-day commitments. Borrowers may rate lock using the Streamlined Rate Lock option.
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Accrual
30/360 and Actual/360.
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Recourse
Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.
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Escrows
Replacement reserves, tax, and insurance escrows are typically required for higher leverage transactions.
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Third-Party Reports
Streamlined inspection and Environmental Screening using the ASTM E-1528-14 protocol.
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Assumption
Non-recourse Small Mortgage Loan are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
