Fannie Mae Structured Adjustable Rate Apartment Loans
Fannie Mae structured adjustable rate apartment loans offer borrowers apartment financing with very low, adjustable mortgage rates. Also, the loans are convertible to fixed-rate loans when certain conditions are met.
Fannie Mae Structured Adjustable Rate Apartment Loans can be used for the acquisition or refinancing of existing, multifamily projects and manufactured housing communities. Seniors housing projects and moderate apartment rehabilitation projects may be possible, but must be approved on a case-by-case basis by Fannie Mae. Under no circumstances can Fannie Mae Structured Adjustable Rate Apartment Loans be used to finance projects that involve substantial rehabilitation or credit enhancements. They are available for loan amounts of $25 million and above. Maximum loan amounts are based on a maximum loan to value ratio of 75%, with minimum DSCR of 1.0x. Loan terms range from 5-10 years. See also:
Fannie Mae Apartment Loans Terms Sheet
Maximum loan amount based on loan to value ratio and debt service coverage ratios
• One-year lock-out, then declining prepayment premium 4% year 2, 3% year 3, 2% year 4, 1% thereafter.
• One-year lock-out with a 1% prepayment premium thereafter. No premium during last 3 mos of loan.
- No prepayment penalty is charged at the time of the conversion to fixed-rate.
- Minimal re-underwriting;
- Lender determines that the current NOI can support the new fixed-rate.
- No increase in the loan amount; loan may be eligible for a Supplemental loan.
Fannie Mae Structured Adjustable Rate Apartment Loans offer low interest multifamily loans for the acquisition or refinancing of existing, stabilized multifamily properties. The loans offer flexible terms, prepayment options and the ability to choose interest rate caps.
- Minimum loan amount $25 million, no maximum loan amount.
- Maximum loan to value ratio 75% and maximum DSCR 1.0X
- Loan terms from 5-10 years with amortization from 25 to 30 years
- Loans are convertible to fixed-rate on specific dates (conditional)