FANNIE MAE DUS®
Healthy Housing Rewards Enhanced Resident Services
BENEFITS
- Lower interest rate.
- Initial Service Provider certification and Property certification reimbursed by Fannie Mae.
- Flexible underwriting to specific affordable developments.
- Flexible loan terms, and fixed- or variable-rate financing options.
- Certainty and speed of execution.
-
ELIGIBILITY
- Multifamily properties with rent or income restrictions where at least 50% of the units are affordable to households earning no more than 80% of Area Median Income.
- Eligible Properties include:
- Multifamily Affordable Housing (MAH);
- Properties subject to Sponsor Initiated Affordability (SIA); and
- Sponsor Dedicated Workforce Housing (SDW).
- One-time benefit per borrower per property. Cannot be combined with Healthy Housing Rewards Healthy Design benefits.
-
TERM
5 – 30 years.
-
AMORTIZATION
Up to 35 years.
-
SERVICE PROVIDER CERTIFICATION
Cost of initial Service Provider certification, up to $5,500 will be reimbursed by Fannie Mae. Service Provider must obtain recertification every 5 years.
-
PROPERTY LEVEL CERTIFICATION
Sponsors, or 3rd party service provider, must obtain CORES certification from an approved Fannie Mae provider prior to Lock. Borrowers must also obtain Property-level Enhanced Resident Services certification from an approved Fannie Mae provider before Rate Lock. Cost of initial property-level certification, up to $750 will be reimbursed by Fannie Mae. Borrower must obtain yearly Property recertification.
-
INTEREST RATE
Fixed- and variable-rate options available.
-
MAXIMUM LTV
Varies by product type.
-
MINIMUM DSCR
Varies by product type.
-
PREPAYMENT AVAILABILITY
Flexible prepayment options available including yield maintenance and declining prepayment premium.
-
LOAN AMOUNT
No minimum or maximum.
-
RATE LOCK
30- to 180-day commitments. Borrowers may use the Streamlined Rate Lock option. Confirmation of Sponsor-level and Property-level Enhanced Resident Services certifications is required prior to Rate Lock.
-
ACCRUAL
30/360 and Actual/360.
-
RECOURSE
Non-recourse execution is available, with required standard carve-outs for “bad acts” such as fraud and bankruptcy, as well as for failure to maintain required Service Provider and Property-level certifications throughout the loan term.
-
THIRD-PARTY REPORTS
Standard third-party reports, including Appraisal, Phase I Environmental Assessment, and a Property Condition Assessment, are required. Confirmation of Healthy Housing Rewards eligibility is required.
-
ASSUMPTION
Mortgage Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
