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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.
  • 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

    Up to 40 years; 30 years for balloon structures.

  • INTEREST RATE

    Fixed-rate.

  • 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

    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.

  • 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

    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.

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