Commercial Real Estate Division
Commercial Real Estate - Fannie mae
Fannie Mae Apartment Loan Program Guidelines:
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Eligible Properties:
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Stabilized 5+ unit multifamily, condos, town homes, co-op, residential/commercial mixed-use, properties with up to 80% tenant concentration, Section 8 (tenant based).
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Ineligible Properties:
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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).
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Loan Size:
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$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.
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Maximum Loan-to-Value:
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​​80% LTV.
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Maximum CLTV:
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100% is possible with Joint Venture
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Eligible Locations:
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All 50 states, Puerto Rico, U.S. Virgin Islands, and Guam.
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Fixed Rate Term:
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5, 7, 10, 12, 15, 18, 20, 22, 25, 30.
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Amortization:
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30 years. Loans are balloons. Hybrid available at a premium.
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Minimum DSCR:
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1.25.
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Minimum Occupancy:
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85% physical / 80% economic for 90 days prior to closing.
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Interest Only:
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Available
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Interest Accrual:
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Actual/360 or 30/360.
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Prepayment Penalty:
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The greater of 1% or yield maintenance.
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Guarantee:
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Non-recourse for most loans subject to standard carve-outs.
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Assumable:
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Yes, subject to lender approval.
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Escrows:
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Tax and insurance required on higher leveraged loans.
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Third Party Reports:
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Appraisal, Market Study, Phase I Environmental, Engineering Report and Seismic where applicable.
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Sponsor Requirements:
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680 minimum credit score
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Local ownership doesn't require prior multifamily ownership experience.
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Absentee ownership requires two years comparable multifamily ownership experience (exceptions made for strong sponsorship and asset quality).