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Commercial Real Estate Division

Commercial Real Estate - Fannie mae

Fannie Mae Multifamily Cooperative Loans for Apartment Buildings and Condos Program Guidelines:

Eligible Properties:

  • Existing stabilized Cooperative Properties in eligible Cooperative Property markets.

  • Cooperative corporations with strong financial management and solid operating history.

  • Limited equity cooperatives targeted for low and moderate-income families may be eligible.

Property Requirements:

  • 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%).

  • The property management company is required to have experience with cooperative properties of like size and market.

  • Reserve Balance: greater than or equal to 10% of annual maintenance fees.

  • Co-op is required to charge maintenance fees to sufficient levels to achieve a balanced budget.

  • Generally, no more than 40% of the units may be owned by the Sponsor.

Loan Size:

  • $1,000,000 with no maximum. 

Maximum Loan-to-Value:

  • ​​55% LTV.

Maximum CLTV:

  • 100% is possible with Joint Venture

Eligible Locations:

  • Call for details

Fixed Rate Term:

  • 5 to 30 years

Amortization:

  • 30 years. 

Minimum DSCR:

  • 1.00 on actual operations and 1.55 based on market rents.

Prepayment Penalty:

  • The greater of 1% or yield maintenance.

Guarantee:

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

Assumable:

  • Yes, subject to lender approval.

Escrows:

  • 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:

  • Single asset single purpose U.S. entity.

 

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