Fannie Mae Multifamily Loans
Program
Long-Term Financing for Multifamily Properties
Fannie Mae multifamily loans provide competitive financing options for investors purchasing or refinancing apartment buildings and other eligible multifamily properties.
At SBAcommercialloans.com, our financing options extend beyond SBA loans. We help commercial real estate investors explore Fannie Mae and other multifamily loan programs based on the property, loan amount, cash flow, borrower experience, and long-term investment objectives.
Whether you’re acquiring a stabilized apartment property, refinancing an existing multifamily loan, or looking for long-term financing for your portfolio, a Fannie Mae loan may provide an attractive solution.
Program Overview
What Is a Fannie Mae Multifamily Loan?
Fannie Mae provides financing for eligible multifamily properties through approved lenders, including its Delegated Underwriting and Servicing (DUS®) network.
These loans are generally designed for the acquisition or refinancing of existing multifamily properties with five or more residential units.
Unlike SBA financing, which generally focuses on qualifying operating businesses and owner-occupied commercial real estate, Fannie Mae financing is specifically designed for eligible multifamily investment properties.
Benefits
Benefits of Fannie Mae Financing
Depending on the property and program, potential advantages may include:
Competitive interest rates
Fixed- and variable-rate options
Loan terms from 5 to 30 years
Amortization periods up to 30 years
Acquisition and refinance financing
Non-recourse options for qualifying transactions
Flexible prepayment structures
Supplemental financing opportunities
Financing for small and large multifamily properties
Actual loan terms, leverage, DSCR requirements, and pricing depend on the property and applicable Fannie Mae program.
Eligibility
Eligible Multifamily Properties
Fannie Mae financing may be available for a variety of qualifying multifamily properties, including:
Conventional apartment properties
Multifamily affordable housing
Workforce housing
Manufactured housing communities
Student housing
Seniors housing
Certain cooperative properties
Other eligible multifamily housing
Fannie Mae also offers specialized programs for different property types and financing needs.
Underwriting
How Are Fannie Mae Loans Underwritten?
Fannie Mae multifamily underwriting focuses heavily on the financial performance and condition of the property, along with the financial strength and experience of the borrower. Important factors may include:
Debt Service Coverage Ratio (DSCR)
The property's ability to generate sufficient income to cover the proposed debt payments.
Net Operating Income (NOI)
The property's rental income after eligible operating expenses.
Loan-to-Value (LTV)
The relationship between the requested loan amount and property value.
Borrower Experience
Multifamily ownership and management experience may be considered.
Occupancy
Properties generally need to demonstrate stabilized occupancy and operating performance.
Financial Strength
Liquidity, net worth, creditworthiness, and financial capacity are also important considerations.
Construction and substantial rehabilitation projects typically require additional review of development costs, plans, specifications, construction experience, and project feasibility.
Comparison
FHA vs. Fannie Mae & Freddie Mac
FHA/HUD, Fannie Mae, and Freddie Mac can all provide multifamily financing, but the programs have different structures and underwriting requirements.
FHA/HUD can be particularly attractive for borrowers seeking long-term financing and for qualifying construction or substantial rehabilitation projects.
Fannie Mae and Freddie Mac may provide alternatives for stabilized multifamily acquisitions and refinances.
Our team can evaluate multiple programs rather than limiting your transaction to one financing source.
Next Step
Find the Right FHA/HUD Loan
Tell us about your property, number of units, occupancy, purchase price or value, net operating income, requested loan amount, and financing objective.
Our commercial lending team can evaluate FHA/HUD, Fannie Mae, Freddie Mac, Bridge, DSCR, SBA, and other commercial financing options for your transaction.
Explore FHA Commercial Financing
SUBMIT YOUR PROPERTY FOR REVIEW
FHA/HUD financing is subject to current federal program requirements, lender underwriting, property eligibility, appraisal, third-party reports, borrower qualifications, and program availability.
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