Download Term Sheet
FANNIE MAE DUS®
Rural Development Guaranteed Rural Rental Housing Program
BENEFITS
- Mitigate loan losses with 90% USDA guaranty.
- Certainty and speed of execution.
- Flexible loan amortization terms.
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ELIGIBILITY
- Lenders approved by RD and Fannie Mae.
- Preservation transactions with rent subsidies.
- Minimum $6,500 per unit rehabilitation required.
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Term
25 – 40 years.
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Amortization
25 – 40 years; fully amortizing or balloon structures permitted.
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Interest Rate
Fixed-rate.
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Maximum LTV
90% (Public Entities/Nonprofits up to 97% subject to Fannie Mae approval).
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Minimum DSCR
1.15x.
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Recourse
Lender recourse for losses not covered by RD’s guaranty.
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AFFORDABILITY RESTRICTIONS
Project averaged rent capped at 30% of Area Median Income, adjusted for family size.
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PROPERTY CONSIDERATIONS
Eligible Rural Areas are determined by USDA RD. RD loan application approved through the RD Notice of Funds Availability (NOFA) process. Refinance transactions are not eligible.
