If you are interested in Fannie Mae Green Rewards, it's important to understand your options. Below you will find frequently asked questions concerning Green Rewards to help you with your lending decision. See below to find out about eligible properties, minimum Debt Service Coverage, maximum LTV, and more.
Fannie Mae Green Rewards Questions
Questions & Answers
What are the available terms and amortization?
The term available is 5-30 years with an amortization of up to 30 years
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What is the maximum LTV?
Varies by asset class and product type
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What is the minimum Debt Service Coverage?
Varies by asset class and product type
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Is this loan non-recourse?
Yes, this is a non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.
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What are the benefits?
- Lower interest rate
- Free Energy and Water Audit Report
- Up to 5% more loan proceeds
- Increased Net Cash Flow by underwriting projected energy and water cost savings
- No minimum investment per unit
- Attract more investors with the market’s only Green MBS
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What property types are eligible?
- Conventional and Affordable Housing
- Multifamily, Seniors, Student, Military, and Cooperative
- Borrower must commit to installing capital improvements that target a 25% or more reduction to the whole property’s annual energy or water use
- Improvements must be installed within 12 months of loan origination
- Properties may be located anywhere in the U.S.
- Only Green Rewards loans that are projecting greater than 5% additional loan proceeds are Pre-Review.
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