Commercial Real Estate Division
Commercial Real Estate - Fannie mae
Fannie Mae Multifamily Cooperative Loans for Apartment Buildings and Condos Program Guidelines:
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Eligible Properties:
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Existing stabilized Cooperative Properties in eligible Cooperative Property markets.
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Cooperative corporations with strong financial management and solid operating history.
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Limited equity cooperatives targeted for low and moderate-income families may be eligible.
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Property Requirements:
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The average of the last three (3) years of maintenance fee accounts receivable as a percentage of total annual maintenance fees must not exceed three percent (3%).
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The property management company is required to have experience with cooperative properties of like size and market.
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Reserve Balance: greater than or equal to 10% of annual maintenance fees.
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Co-op is required to charge maintenance fees to sufficient levels to achieve a balanced budget.
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Generally, no more than 40% of the units may be owned by the Sponsor.
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Loan Size:
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$1,000,000 with no maximum.
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Maximum Loan-to-Value:
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​​55% 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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Call for details
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Fixed Rate Term:
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5 to 30 years
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Amortization:
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30 years.
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Minimum DSCR:
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1.00 on actual operations and 1.55 based on market rents.
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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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Single asset single purpose U.S. entity.