If you have a meeting scheduled to get a Fannie Mae or Freddie Mac preliminary loan quote, gathering your documents is an essential first step.
Fannie Mae and Freddie Mac loans are popular choices for those investing in multifamily and commercial properties. However, the documentation requirements for these types of loans are more stringent than other loans. You’ll also need access to approximately $12,000 in deposit, to cover inspections, reports, appraisals, and more.
Start by scheduling a free phone consultation with a trusted lending advisor, then review our list of required documents to prepare to secure your loan.
Documents Needed for a Preliminary Multifamily Loan Quote
Once you have a meeting scheduled, it’s time to start gathering documentation to ensure you can meet the multifamily loan requirements. Use the following as a checklist:
T12 Monthly Operating Statements
A “trailing twelve-month operating statement” is also referred to as a TTM or T12. This type of financial statement provides detail on the last 12 months of operations. This is one of the most important documents you’ll need to secure your loan. The T12 incorporates expenses and revenue, and summarizes the overall financial performance of your investment for the last 12 months.
Your current and previous rent rolls offer a great way to prove how much income your property is driving as they detail precisely how much the property receives in rent. Your rent rolls should include tenant names, rents, lease dates, security deposit, and all other relevant information.
Current HAP Contract
Your Housing Assistance Payments Contract (HAP Contract) is an agreement between you (the owner of the multifamily apartment building) and the Public Housing Agency (PHA), confirming that the PHA will financially support the applicable families you are housing. This item is only relevant if you are housing families as part of Section 8 of the U.S. Housing Act of 1937.
Most Recent Mortgage Statement
You must bring your most recent mortgage statement to your preliminary loan quote meeting, to demonstrate that you reliably make payments and to give the lender a fuller picture of your financial circumstances.
Management Company Resume
Bring the resume of your multifamily apartment building’s management company. This will demonstrate that the property is well taken care of and that you are working with a reputable team likely to contribute to its success.
It’s important to have the cost of renovations and capital expenditures available during the preliminary loan quote process. Make sure you have good knowledge of how your investments will impact the value of the property in the long term.
Contact Us Today
Ready to learn more about how to get a Fannie Mae or Freddie Mac loan?
LSG Lending Advisors is here to make understanding multifamily loan requirements and securing your Fannie Mae or Freddie Mac loan easy. Schedule a free phone consultation with a trusted lending advisor to find the right loan for you, and secure a preliminary loan quote with a favorable interest rate.