Commercial Real Estate Division
Commercial Real Estate - Fannie mae
Fannie Mae Multifamily Small Loan Program Guidelines:
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Eligible Properties:
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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.
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Loan Size:
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$750,000 to $5 Million USD
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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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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.
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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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90% physical / 85% 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. Step down (e.g. 5-4-3-2-1) available.
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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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Collective net worth of key principals must exceed loan amount
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Minimum liquidity of nine months debt service
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Local ownership no prior multifamily experience required
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​Absentee ownership requires two years comparable multifamily ownership experience