FANNIE MAE® DUS
Standard FHA Risk Sharing Execution
Highly competitive pricing for MAH transactions. MBS and Credit Enhancement Mortgage Loan for bond executions are available.
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 handles all HUD/FHA interactions.
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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
Up to 40 years; 30 years for balloon structures.
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INTEREST RATE
Fixed-rate.
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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
Some transactions will require a subsidy layering review by HUD (or in some cases, a state tax credit allocating agency), including:
- new construction/substantial rehabilitation LIHTC transactions;
- LIHTC transactions with credits still flowing to the property (less than 10 years old);
- a transaction receiving new federal capital resources (e.g., new soft debt from a state or local government funded via HOME funds);
- transactions with a project-based Section 8 HAP contract; and
- transactions with an IRP contract.
The Lender and Fannie Mae will coordinate HUD’s review on behalf of the borrower. This review will occur simultaneously with the Lender’s underwriting of the loan.
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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
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
In its prequalifying review, Lument will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.
