FANNIE MAE DUS®
Standard FHA Risk Sharing Execution
BENEFITS
- Highly competitive pricing for MAH transactions.
- Certainty and speed of execution.
- One stop customer service – Borrowers only need to work with their Fannie Mae Lender who will handle the Mortgage Loan execution.
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ELIGIBILITY
- Multifamily Affordable Housing properties with income and rent restrictions effective the entire loan term.
- Immediate and Forward Commitment executions.
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LOAN AMOUNT
No minimum or maximum; however, loans over $50 million require HUD consent.
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TERM
15 – 40 years.
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AMORTIZATION
Full amortization up to 40 years; Balloon structures capped at 30-year amortization.
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INTEREST RATE
Fixed-rate.
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INTEREST ONLY
Considered on an exception basis.
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MAXIMUM LTV
Up to 90% “as stabilized”.
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MINIMUM DSCR
1.15x – 1.20x “as stabilized”.
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PROPERTY CONSIDERATIONS
The rent and income restrictions applicable to the property must remain in effect for at least the term of the Mortgage loan.
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RATE LOCK
30- to 180-day commitments.
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PREPAYMENT AVAILABILITY
Flexible prepayment options available.
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SUBSIDY LAYERING REVIEW
A subsidy layering review should be obtained when required by federal law, noting that FHA Risk Sharing loans are considered a source of federal government assistance.
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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 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
Mortgage Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
