Flexible Loan Terms for Existing and Stabilized Conventional Properties
The Fannie Mae Fixed Rate program offers flexible loan terms with predictable payments for existing, stabilized conventional properties that are:
- Multifamily Affordable Housing properties;
- Seniors Housing properties,
- Student Housing properties, or
- Manufactured Housing Communities.
The property must have a minimum of five units. Borrowers may have indirect foreign ownership interests, subject to proper structuring of the borrowing entity and its parent.
Term Sheet for Fannie Mae Fixed Rate
||Up to 30 years.
||80% for conventional properties. See the specific asset class or product type term sheet for details.
||1.25x for conventional properties. See the specific asset class or product type term sheet for details.
||Properties must have stabilized occupancy (typically 90%) for 90 days prior to funding. Loan commitments for pre-stabilized properties will be considered on a case-by-case basis.
||Supplemental loans are available.
||Loans may be voluntarily prepaid upon payment of yield maintenance or prepayment premium.
||30- to 180-day commitments. Borrowers may lock the rate with the streamlined rate lock option.
||30/360 and Actual/360.
||Non-recourse execution is available for most loans greater than $750,000. Standard carve-outs required for “bad acts” such as fraud and bankruptcy.
||Replacement reserve, tax, and insurance escrows are typically required.
||Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.
||Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.