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Non-recourse, assumable fixed rate financing for the acquisition or refinance of stabilized multifamily rental or cooperative properties.

Apartment Loan Amount

Minimum $3,000,000

Fannie Mae DUS® Fixed Rate Multifamily Loan Program Term Sheet

Loan Amount

Minimum $3,000,000

Loan Term
5-, 7-, 10- or 15-year balloon; 20-, 25- or 30-year fully amortizing

25 or 30 years, based on property condition; Interest-only financing is available

Loan to Value Maximum
Maximum 80% of appraised value, or if property has been purchased within the past 12 months, 80% of lower of: a) purchase price, plus value added renovation, plus 3% closing costs, or b) appraisal

Coverage Minimum
1.25x minimum

Domestic single asset borrowing entity is required

Multifamily Mortgage Interest Rates
Risk-based “Tier” pricing, varying with LTV and DSC ratios

Prepayment Terms
Yield Maintenance with no lockout, defeasance, or fixed, step-down prepayment schedules

Third Party Reports
MAI Appraisal, Physical Needs Assessment, and Environmental Phase I Assessment are required, plus Seismic Report may be required for properties in Seismic Zones 3 and 4


Tax and insurance escrows are required; Funded Repair and Replacement escrow is required, based on engineer’s Physical Needs Assessment; For loans of less than 65% of value with no deferred maintenance, funding of repair and replacement reserve can be waived at lender’s discretion

Application Fee
$15,000; covers 3rd party reports and processing/underwriting costs

Origination Fee
Fannie Mae requires minimum origination fee equal to 1% of loan amount for loans of $9 million or less;
Minimum fee for loans over $9 million through $20 million is the greater of 0.8 percent or $90,000; Fees decrease further is increasing loan size; Origination fee can be charged “outside” of the interest rate as a separate fee, or it can be built into the rate

Legal Fees
$8,000 to $12,000 varying with characteristics of the deal

45-60 days from application to commitment; dependent on 3rd party report timing and borrower’s submission of due diligence

Rate Lock
Typically, lock occurs after commitment is issued; Streamlined Rate Lock option is available, allowing rate lock within 3-4 weeks of application

Loan is assumable, subject to lender approval of proposed replacement borrower; Fees include 1% assumption fee, part of which is paid to Fannie Mae, and a $3,000 processing fee to cover lender’s underwriting expenses

Related Fannie Mae Loan Options

Fannie Mae Moderate Rehabilitation Loan Program

Non-recourse, assumable financing for the acquisition or refinance of any asset class with planned capital improvements in excess of $8,000 per unit for the entire property.

Fannie Mae Near-Stabilization Loan

Permanent mortgage loan financing for newly constructed or recently renovated conventional and affordable multifamily apartment communities expected to achieve stabilized occupancy within 120 days.

Fannie Mae Seniors Housing Loan Program

Non-recourse, assumable financing for the acquisition or refinance of stabilized independent living (IL) and assisted living (AL) properties; Properties that assist residents with memory care (MC) are eligible for financing under Fannie Mae’s Seniors Housing Program;