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Commercial Real Estate Division

Commercial Real Estate - Fannie mae

Fannie Mae Apartment Loan Program Guidelines:

Eligible Properties:

  • Stabilized 5+ unit multifamily, condos, town homes, co-op, residential/commercial mixed-use, properties with up to 80% tenant concentration, Section 8 (tenant based).

Ineligible Properties:

  • Condos with fractured ownership structure, properties belonging to an HOA, HAP contract (must be processed through Affordable Loan program), Phased properties require a waiver, construction, substantial rehab/renovation, town home or duplex properties that are non-contiguous, properties with a healthcare component (may be processed through the Seniors Housing program).

Loan Size:

  • $3,000,000 with no maximum. Lower loan sizes considered on an exception basis. e.g. Loan size under $3 Million with a tenant concentration can be processed.

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:

  • 5, 7, 10, 12, 15, 18, 20, 22, 25, 30.


  • 30 years. Loans are balloons. Hybrid available at a premium.

Minimum DSCR:

  • 1.25.

Minimum Occupancy:

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

Interest Only:

  • Available

Interest Accrual:

  • Actual/360 or 30/360.

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

  • Local ownership doesn't require prior multifamily ownership experience.

  • Absentee ownership requires two years comparable multifamily ownership experience (exceptions made for strong sponsorship and asset quality).


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