FANNIE MAE DUS®
Healthy Housing Rewards Healthy Design
BENEFITS
- Mortgage Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.Lower interest rate.
- Reimbursement for Healthy Design Certification (up to $6,500).
- Flexible underwriting to specific affordable developments.
- Flexible loan terms, and fixed- or variable-rate financing options.
- Certainty and speed of execution.
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ELIGIBILITY
- Property must have a Healthy Design Certification that is recognized and approved by Fannie Mae per Form 4248.
- 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 Enhanced Resident ServicesTM
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TERM
5 – 30 years.
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AMORTIZATION
Up to 35 years.
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HEALTHY DESIGN CERTIFICATION
The Property must obtain a Healthy Design certification from an approved Fannie Mae provider before Rate Lock. Certification fee cost (up to $6,500) reimbursed by Fannie Mae.
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INTEREST RATE
Fixed- and variable-rate options available.
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MAXIMUM LTV
Varies by product type.
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MINIMUM DSCR
Varies by product type.
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LOAN AMOUNT
No minimum or maximum.
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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 the interest rate using Streamlined Rate Lock option. Confirmation of Healthy Design certification is required prior to rate lock.
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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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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 features and eligibility is required.
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ASSUMPTION
Mortgage Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
