Fannie Mae Multifamily Financing

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WE KNOW FANNIE MAE LENDING

ICS is among the select group of companies with the expertise and resources to meet our Fannie Mae Lender's stringent DUS® Lender requirements. That means we can provide Fannie Mae financing with exceptional speed and certainty. With our DUS Lender Partnerships, we provide uncommon value to investors across all Fannie Mae asset classes, including multifamily, affordable, student, and manufactured housing as well as to those interested in Fannie Mae’s Small Loan program.

$1MM+ | No Max Loan Size

 

Fixed-Rate Mortgage Loans

Flexible fixed-rate options for acquiring or refinancing multifamily properties.

BENEFITS

  • Flexible loan terms.
  • Competitive pricing.
  • Predictable payment and amortization schedule.
  • Speed in processing and underwriting.
  • ELIGIBILITY
    • Existing, stabilized Conventional properties; Multifamily Affordable Housing properties; Seniors Housing properties; Student Housing properties; and Manufactured Housing Communities.
    • Properties with a minimum of five units (50 pad sites for Manufactured Housing Communities).
    • Credit-worthy single asset U.S. borrower with U.S. ownership.
    • Borrowers may have indirect foreign ownership interests, subject to proper structuring of the borrowing entity and its parent.
  • TERM

    5 – 30 years.

  • AMORTIZATION

    Up to 30 years.

  • MAXIMUM LTV

    80% for Conventional properties. See the specific asset class or product type term sheet for details.

  • MINIMUM DSCR

    1.25x for Conventional properties. See the specific asset class or product type term sheet for details.

  • PROPERTY CONSIDERATIONS

    Properties must have stabilized occupancy (typically 90%) for 90 days prior to funding. Loan commitments for pre-stabilized properties will be considered on a case-by-case basis.

  • SUPPLEMENTAL FINANCING

    Supplemental loans are available.

  • PREPAYMENT AVAILABILITY

    Loans may be voluntarily prepaid upon payment of yield maintenance or prepayment premium.

  • RATE LOCK

    30- to 180-day commitments. Borrowers may lock the rate with the Streamlined Rate Lock option.

  • ACCRUAL

    30/360 and Actual/360.

  • RECOURSE

    Non-recourse execution is available for most loans greater than $750,000. Standard carve-outs required for “bad acts” such as fraud and bankruptcy.

  • ESCROWS

    Replacement reserve, tax, and insurance escrows are typically required.

  • THIRD-PARTY REPORTS

    Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.

  • ASSUMPTION

    Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.


In its prequalifying review, ICS will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.

 


Hybrid ARM Loans

A 30 year Mortgage Loan, comprised of an initial term where interest accrues at a fixed-rate, after which it automatically converts to accrue interest at an adjustable rate for the remaining term.

BENEFITS

  • Competitive interest rates.
  • Lower cost of execution.
  • Delegated Model provides Lenders and Borrowers speed and certainty of execution.
  • No Underwriting Floor or Fixed-rate test.
  • Flexible prepayment terms.
  • ELIGIBILITY
    • Properties with loan amount $6 million or less, regardless of location.
    • Properties with 5-50 units and loan amount $6 million or less, regardless of location.
    • Existing stabilized multifamily properties, including Conventional properties and Manufactured Housing Communities.
    • Loans for acquisition or refinance.
  • TERM

    7-year fixed-rate term, followed by a 23-year adjustable rate term; or 10-year fixed-rate term, followed by a 20-year adjustable rate term.

  • AMORTIZATION

    30 years.

  • MAXIMUM LTV

    Up to 80%.

  • MINIMUM DSCR

    The maximum loan amount must be determined by using a minimum 1.00 DSCR sufficient to cover a debt service constant that equals the sum of the interest rate during the fixed-rate term, plus 2.50%.

  • RATE LOCK

    30- to 180-Day commitments available. Borrowers may be eligible to lock the interest rate using the Streamlined Rate Lock option.

  • INTEREST RATE ADJUSTMENTS

    Starting in the adjustable rate period, adjusts based on changes to the underlying index and is equal to the index plus the Margin.

  • INDEX DURING ADJUSTABLE RATE TERM

    30-day Average SOFR.

  • MARGIN DURING ADJUSTABLE RATE TERM

    1.15%, plus the Guaranty Fee Rate and the Servicing Fee Rate in effect at Rate Lock.

  • PREPAYMENT AVAILABILITY
    • Flexible prepayment options available during the fixed-rate term, including yield maintenance and declining prepayment premium.
    • No prepayment premium required for any prepayment during the adjustable rate period.
  • LIFETIME INTEREST RATE FLOOR

    The interest rate will never be less than the Margin.

  • SUPPLEMENTAL FINANCING

    Supplemental Mortgage Loans are not available.

  • ACCRUAL

    Actual/360.

  • RECOURSE

    Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.

  • ESCROWS

    Replacement reserve, tax, and insurance escrows are typically required.

  • THIRD-PARTY REPORTS

    If underwriting to Small Mortgage Loans, then streamlined inspection and Environmental Screening using the ASTM E-1528-14 protocol are permitted; otherwise, standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.

  • ASSUMPTION

    Mortgage Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.