Fannie Mae DUS Multifamily Loans

Fannie Mae DUS Multifamily Loans are critical to the functioning of the apartment lending market, providing a reliable source of mortgage capital. Created in 1988 to be a backstop to multifamily mortgage markets, Fannie Mae DUS Multifamily Loans are an essentially uninterruptible source of capital to the multifamily industry. Fannie Mae DUS Multifamily Loans are available to a wide spectrum of the multifamily lending market, including conventional apartment loans, rent-restricted affordable housing loans, cooperative housing loans, seniors housing loans, student housing loans and manufactured housing community loans.

The majority of Fannie Mae DUS multifamily loans finance workforce housing and more than 85% of the loans finance units that are affordable to families earning at or below the area’s median income level.

Since its creation in 1988, Fannie Mae DUS multifamily loans have delivered more than $300 billion in liquidity to mortgage markets, providing multifamily financing to more than 6.3 million apartment units. It is now the largest single source of apartment financing in America. Fannie Mae DUS multifamily loans provide industry low interest rates, flexible loan terms and certainty of execution for apartment loans with a $3 million minimum loan amount.

Offering flexible loan terms and industry low multifamily loan rates, Fannie Mae DUS Multifamily Loans may be used by credit-worthy single-asset US entities and entities with all US ownership to finance existing, stabilized properties with a minimum of five units or 50 pad sites in the case of Manufactured Housing Communities.

Fannie Mae DUS multifamily loans were created in 1988 to provide multifamily financing to meet the needs of developers and owners of multifamily projects seeking short- and long-term, fixed-rate, non-recourse financing. Fannie Mae instituted an underwriting and processing license arrangement with private mortgage brokers who would take “top end” risk on mortgage loans for the opportunity to underwrite and close loans without the pre-permission of Fannie Mae. This structure allowed Fannie Mae to build an engaged network of professional apartment lenders who would originate, process, underwrite, commit and close multifamily mortgage loans under the Fannie Mae guarantee of principal and interest repayment to the mortgage investment market.

While Fannie Mae is a GSE (Government Sponsored Enterprise) and not part of the federal government; it’s mortgage securities were (and continue to be) deemed virtually a “Full Faith and Credit” of the federal government. Thus, borrowers of Fannie Mae DUS multifamily loans receive an interest rate which is only slightly higher than those provided by FHA multifamily loans. Additionally, one of the key features of the all Fannie Mae DUS multifamily programs is that the borrower’s contact is with the DUS apartment lender, not with a government agency. Underwriting and processing times tend to be relatively fast and unless a special waiver is needed for a particular element of a transaction, the entire process is very straightforward.

All Fannie Mae DUS multifamily loans are a tremendous deal in the marketplace, offering borrowers better rates and terms than conventional multifamily loans, CMBS apartment loans or apartment bridge loans. We encourage you to get a better feel for Fannie Mae DUS multifamily loans and we are pleased to offer an exclusive property analysis and loan quote. There is, of course, no obligation, and it only takes a few minutes. Just send us the Loan Information Request and we’ll take care of the rest. You’ll also see how we’ll make your next deal more successful.

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