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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.
  • ELIGIBILITY
    • Multifamily Affordable Housing properties with income and rent restrictions effective the entire loan term.
    • Immediate and Forward Commitment executions.
  • LOAN AMOUNT

    No minimum or maximum; however, loans over $50 million require HUD consent.

  • TERM

    15 – 40 years.

  • AMORTIZATION

    Full amortization up to 40 years; Balloon structures capped at 30-year amortization.

  • INTEREST RATE

    Fixed-rate.

  • INTEREST ONLY

    Considered on an exception basis.

  • MAXIMUM LTV

    Up to 90% “as stabilized”.

  • MINIMUM DSCR

    1.15x – 1.20x “as stabilized”.

  • PROPERTY CONSIDERATIONS

    The rent and income restrictions applicable to the property must remain in effect for at least the term of the Mortgage loan.

  • RATE LOCK

    30- to 180-day commitments.

  • PREPAYMENT AVAILABILITY

    Flexible prepayment options available.

  • 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.

  • RECOURSE

    Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.

  • ESCROWS

    Replacement reserve, tax, and insurance escrows are typically required.

  • THIRD-PARTY REPORTS

    Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.

  • ASSUMPTION

    Mortgage Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.


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