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Commercial Real Estate Division

Commercial Real Estate - Fannie mae

Fannie Mae Multifamily Small Loan Program Guidelines:

Eligible Properties:

  • Eligible property types include, 5+ unit traditional apartment complexes, condo properties without fractured ownership, town homes, and duplexes. Mixed-use properties with up to 35% commercial rentable space with no greater than 20% off effective gross. Scattered site properties subject to Fannie Mae review.

Loan Size:

  • $750,000 to $5 Million USD

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:

  • Fixed rate terms up to 30 years. Floating rate programs available. Can customize both fixed rate term and amortization period (e.g. 12/25, 18/18, 20/20, 10/15, 25/25) to meet sponsor's investment goals and objectives.


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

Minimum DSCR:

  • 1.25.

Minimum Occupancy:

  • 90% physical / 85% 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. Step down (e.g. 5-4-3-2-1) available.


  • 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

  • Collective net worth of key principals must exceed loan amount

  • Minimum liquidity of nine months debt service

  • Local ownership no prior multifamily experience required

  • ​Absentee ownership requires two years comparable multifamily ownership experience


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