Supplemental Loans

• Stabilized Conventional properties, Multifamily Affordable Housing Properties, Seniors Housing Properties, Student Housing Properties, and Manufactured Housing Communities.
• Subordinate to existing Fannie Mae fixed rate or variable rate Mortgage Loans.
• Bond Credit Enhancement Mortgage Loans are eligible for Supplemental Mortgage Loans with prior approval of Fannie Mae.
• Lender must be the servicer of the existing Fannie Mae Mortgage Loan.
• Fannie Mae must be the only debt holder on the property.

• A minimum of 5 years and a maximum of 30 years.
• May be either coterminous or non-coterminous with the Maturity Date of the Senior Mortgage Loan.

Up to 30 years.

Fixed- and variable-rate options available.

As high as 75%, depending upon asset class and use of proceeds.

As low as 1.30x, depending upon asset class and use of proceeds.

Supplemental Loans are available 12 months after the closing of the senior Fannie Mae Mortgage Loan.

• Supplemental Mortgage Loans may be voluntarily prepaid upon payment of yield maintenance for fixed rate loans and graduated prepayment for variable rate loans.
• The Prepayment Premium Period End Date of a Supplemental Mortgage Loan need not coincide with the Prepayment Premium Period End Date of the Senior Mortgage Loan.

30- to 180-day commitments. Borrower may lock the rate with Streamlined Rate Lock option.

Supplemental Loans can be either coterminous with the underlying senior loan, or non-coterminous.

30/360 and Actual/360.

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

Replacement reserve, tax and insurance escrows are typically required, based on the resulting Tier of the combined Pre-Existing Mortgage Loan and Supplemental Mortgage Loan.

A new Appraisal is required. Other standard third-party reports, including Phase I Environmental Assessment and Property Condition Assessment may not be required if certain conditions are met.

Supplemental Mortgage Loans are typically assumable with a concurrent assumption of the senior Mortgage Loans, subject to review and approval of the new borrower’s financial capacity and experience.