| Program
Overview |
These fixed rate loans are the background of FNMA's
lending programs, offering great
rates, low costs, multiple assumptions and the flexibility of secondary
financing. |
| Eligible Properties |
Multifamily dwellings containing 5 or more units.
Mixed-use with up to 20%
is allowed. A, B or C+ properties
are allowed if well maintained. Properties
with weekly or daily rentals,
rooming houses,
those with excessive deferred maintenance,
supplied by
wells or with less than 85% stabilized occupancy are not acceptable. |
| Loan Term |
5,
7,
10 or even 30 year terms. Fully
amortized 15, 20 or 30 year terms are available. |
| Loan Amortization |
Up to 30 years |
| Loan Amounts |
Minimum of
$1,000,000 with no maximum |
| Maximum Loan-to-Value |
80% on all
eligible transactions including Purchases, Rate/Term Refinances and
Cash-Out Refinances. |
| Minimum Debt Service Coverage |
125% |
| Borrowing Entity |
Single asset and single purpose
entity required |
| Origination Fee |
Typically 1%. May
be negotiated on larger transactions. |
| Secondary Financing |
Fannie Mae supplemental
loans available to 80% CLTV after 12 months. |
| Interest Rates |
Competitive based
upon LTV and DSCR. |
| Recourse |
Non-Recourse except
for standard lender carve-outs. |
| Prepayment Provisions |
Yield Maintenance throughout majority of loan term
until the last 6 months, with the
following 3 months at 1% and final 3 months open to prepayment at par. |
| Reserves |
Tax and Insurance Escrows are required.
Replacement Reserves are typically
required based upon the engineer's report. They may be waived at lower
LTVs. Various funding options are available for Replacement
Reserves. |
| Good Faith Deposit |
A deposit to cover third party costs and expenses is
required at Application with any excess credited at closing. |
| Rate Lock Deposit |
2% deposited prior to Rate Lock and credited at
closing. Early Rate locks are available. |
| Assumptions |
An unlimited number of assumptions are
permitted with
lender's approval with a 1% transfer fee plus applicable processing fee. |
| Closing |
Typically within
5 days of rate lock. |
| Lending Territory |
Almost Nationwide -
See Specific
State coverage |
