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Commercial Real Estate Division

Commercial Real Estate - Fannie mae

Fannie Mae Multifamily Affordable Housing Loan Program Guidelines:

Eligible Properties:

  • Eligible property types include, Section 8 HAP contracts, expiring Low Income Housing Tax Credits, refinancing of tax exempt-bonds, properties with existing RD 515 and RD 538 loans and loans insured under Section 202 and 236 of National Housing Act. Financing for LIHTC properties with expiring tax credits are eligible.

Income Restrictions:

  • Low-income qualifying restrictions; 20% or more units rented to families earning at or below 50% of Area Median Income (AMI), or 40% or more units rented to families earning at or below 60% of AMI. Restriction must be recorded.  


  • A re-stabilization reserve equal to 6 months debt service is generally required. May be reduced or waived on an exception basis.

Loan Size:

  • $1,000,000 with no maximum. 

Maximum Loan-to-Value:

  • ​​80% LTV.

Maximum CLTV:

  • 100% is possible with Joint Venture

Eligible Locations:

  • All 50 states, Puerto Rico, U.S. Virgin Islands, and Guam.

Fixed Rate Term:

  • Up to 30 years


  • 30 years. 

Minimum DSCR:

  • 1.15.

Minimum Occupancy:

  • 85% physical / 80% economic for 90 days prior to closing.

Prepayment Penalty:

  • The greater of 1% or yield maintenance.


  • Non-recourse for most loans subject to standard carve-outs.


  • Yes, subject to lender approval.


  • Tax and insurance required on higher leveraged loans.

Third Party Reports:

  • Appraisal, Market Study, Phase I Environmental, Engineering Report and Seismic where applicable.

Sponsor Requirements:

  • 680 minimum credit score (unlike the Small Loan program, some flexibility with credit score and overall credit in general)

  • Sponsor should either have experience with rent/income restricted properties or have professional third party management with the necessary experience

  • Absentee ownership requires two years comparable multifamily ownership experience


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