FANNIE MAE AFFORDABLE HOUSING LOANS
Financing and Refinancing Small Mortgage Loans for Section 8 HAP Contracts and Rent Income Restricted Multifamily Apartments in Dallas Fort Worth.
Apartment Loan Amount
$1,000,000 – $5,000,000 in Baltimore, Boston, Chicago, Los Angeles, New York, Philadelphia, Portland, Sacramento, San Diego, San Francisco, San Jose, Seattle and Washington DC. $1,000,000 – $3,000,000 in all other markets.
Fannie Mae Affordable Housing Small Mortgage Loans in Texas
Description
Streamlined underwriting for long-term fixed rate financing for the acquisition or refinance of stabilized multifamily rental properties with rent and income restrictions, and/or Section 8 HAP Contracts.
Loan Amount
$1,000,000 – $5,000,000 in Baltimore, Boston, Chicago, Los Angeles, New York, Philadelphia, Portland, Sacramento, San Diego, San Francisco, San Jose, Seattle and Washington DC. $1,000,000 – $3,000,000 in all other markets.
Affordability
An MAH Property must have rent and income restrictions that meet or exceed
Requirements
One of the following requirements.
- At least 20% of all units have rent or income restrictions to households earning no more than 50% of Area Median Income (“AMI”)
- At least 40% of all units have rent or income restrictions in place to households earning no more than 60% of AMI
- At least 20% of all units are subject to a project-based Section 8 HAP contract
Loan Term
7 to 30 years
Amortization
30 years
Prepayment Penalty
Yield maintenance formula with a 1% minimum (Declining Percentage Fee schedule is available upon request)
Recourse
Non-recourse; subject to Lender’s discretion
Debt Service Coverage
1.20x minimum DSCR
Loan to Value
80%
Subordinate Financing
Supplemental mortgages are available after the first 12 months of the loan term or with a loan assumption
Assumability
Non-recourse loans are assumable with the Lender’s consent and a 1% fee
Net Worth and Liquidity
Net worth equal to the loan amount and liquidity equal to 6 months P&I required
Rate Lock
Typically, lock occurs after commitment is issued
Fees
Due Diligence Fee: $15,000 non-refundable fee for legal, 3rd party reports and processing;
Rate Lock Deposit:
Good Faith Deposit of 1% due upon acceptance of commitment and is refundable upon closing
Timing
45-60 days from complete application to commitment
For current Fannie Mae apartment loans, multifamily mortgage rates, contact our multi-housing lenders in Dallas.
Call For a Quote:
(214) 679-9673
Related Fannie Mae Loan Options
Fannie Mae DUS® Fixed Rate Loan Program
Non-recourse, assumable fixed rate financing for the acquisition or refinance of stabilized multifamily rental or cooperative properties
Fannie Mae Green Rewards Loan
Eligible improvements include new ENERGY STAR® appliances, energy efficient HVACs, low flow toilets, LED Lighting, and more.
Fannie Mae Hybrid ARM Loan
Fannie Mae’s Hybrid ARM offers small loan borrowers flexible, long-term financing with attractive prepayment options, and competitive pricing.