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Fannie Mae (FNMA) Apartment Loan Program Guidelines
Loan Amounts $1,000,000 Minimum with no
Maximum Loan Amount
FNMA Apartment Loan Program
Guidelines:
Lending Territory: Nationwide
(almost - See specific State
coverage) Market must have reasonable economic and demographic base.
Loan Amounts Offered: $1,000,000
Minimum (Exceptions Considered) to No Maximum.
Maximum Loan to Value: 80% on all
eligible transactions including Purchases, Rate/Term Refinances, and Cash-Out
Refinances.
Term and Amortization: 30 years
maximum amortization or shorter amortization to suit with term of 5 to 30 years.
30 year fully amortized loans available!
Non Recourse: Key Principles must
sign loan docs for borrowing entity, but do not personally guarantee the loan
except for standard "carve-outs."
Unlimited Assumability:
These apartment loans are assumable an unlimited number of times by subsequent
buyers or borrowers. There is no remaining obligation of any former borrower
after each assumption.
Secondary Financing Allowed:
Your property may be eligible for an attractive second mortgage and even a third
mortgage, up to 80% combined loan to value, one year or more after your first
mortgage closes that can be used for whatever purpose you choose. This
supplemental financing can be taken either by you or a future buyer, and is also
fully assumable. This unique feature combined with the assumable feature on your
original first mortgage loan makes this the most flexible program for any future
plans you may have for the property.
Pre-payment Penalties: Yield
Maintenance or Defeasance.
Eligible Borrowers: Individuals,
Corporations, LLCs, Partnerships, and Trusts. For loans over $3 million, and
case by case on smaller loans, individual borrowers must form a single asset
bankruptcy remote entity to hold the property. Borrowers must have experience in
multi-family property ownership.
Credit Requirements: Good credit,
scores over 620. Liquid Assets greater than or equal to 6 mos. principle and
interest payments. Reasonable net worth compared to requested loan amount.
Eligible Properties:
-
Apartment Buildings of 5 or
more units
-
Mixed Use with up to 20%
commercial space allowed
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A, B or C + grade properties
Ineligible Properties:
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Properties operating with
weekly or daily rentals
-
Single Room Occupancies
(rooming houses)
-
Properties in need of excessive
deferred maintenance or obsolescence
-
Properties supplied by private
well (as opposed to public water source)
-
Properties with less than 85%
stabilized occupancy for at least the preceding 90 days
Documentation Requirements - Items
Needed for Pre-Approval:
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Personal Financial Statement on
principal(s). A basic residential loan application (1003) is fine.
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Current Rent Roll
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Year-to-Date and last 2 Year’s
Income Operating Statements. Schedule Es are fine for previous years.
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Trailing 12 months gross income
(month by month breakdown)
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Emailed Digital Photos of
Property
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Copy of Purchase Contract (if
applicable)
On-Line
Apartment or Commercial
Application
Quick Application
(not completely - also use if your computer
encounters problems with above)
See Also:
Main
Commercial & Apartment Loan Page for many more apartment and commercial
loan programs.
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