FANNIE MAE GREEN REWARDS
Energy Star Green Loans for energy saving multifamily Multi-housing-properties in Dallas, Fort Worth, DFW Suburbs and North Texas.
Apartment Loan Amount
No minimum or maximum.
Fannie Mae Green Rewards Energy Efficient Apartment Loans Term Sheet
Description
Provides lower pricing, additional loan proceeds, and a free Energy and Water Audit Report to finance smarter, greener property improvements. Eligible improvements include new ENERGY STAR® appliances, energy efficient HVACs, low flow toilets, LED Lighting, and more.
Benefits
Lower interest rate, free energy and water audit report, up to 5% more loan proceeds, increased net cash flow by underwriting projected energy and water cost savings, no minimum investment per unit, attract more investors with the market’s only Green MBS.
Eligibility
All Asset Classes (excluding Manufactured Housing Communities) with at least 12 months of Stabilized Residential Occupancy; a Manufactured Housing Community is not eligible. Property owner must commit to property improvements that are projected to reduce the whole property’s annual energy and/or water usage by at least 30%, of which a minimum of 15% must be attributable to projected savings in energy consumption. Improvements must be installed within 12 months of loan origination. Properties may be located anywhere in the U.S. Only Green Rewards loans that are projecting greater than 5% additional loan proceeds are Pre-Review.
Lien Priority
First lien loans, supplemental loans, and second supplemental loans. For a second supplemental, 100% of the loan proceeds must go towards green improvement costs.
Availability of Additional Loan Proceeds
Up to 5% more than a conventional (non-green) DUS Loan.
Energy and Water Audit Report
100% paid by Fannie Mae. Report scope equivalent to ASHRAE Level 2 Energy Audit. Loan must close as Green Rewards.
Underwriting
75% of the owner and 25% of the tenant projected energy and water cost savings may be included in the Underwritten Net Cash Flow.
Execution Options
Green MBS
Term
5 to 30 years
Multifamily Mortgage Interest Rates
Fixed and variable rate options available
Loan Amount
No minimum or maximum.
Maximum LTV
Varies by asset class and product type.
Minimum LTV
Varies by asset class and product type.
Prepayment Availability
Flexible prepayment options available including yield maintenance and declining prepayment premium.
Rate Lock
30- to 180-day commitments. Borrowers may lock the interest rate using the Streamlined Rate Lock option. The Energy and Water Audit Report must be approved by Fannie Mae five days prior to rate lock.
Accrual
30/360 and Actual/360
Recourse
Non-recourse execution is available, with standard carve-outs for “bad acts” such as fraud and bankruptcy required.
Escrows
Costs for green investments escrowed at 100%.
Third-Party Reports
Standard third-party reports, including Appraisal, Phase I Environmental Assessment, and a Property Condition Assessment, are required. The Property Condition Assessment must include the High Performance Building module (Energy and Water Audit Report).
Assumption
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
Asset Management
Property improvements must be completed within 12 months. Lender will verify the completion of the agreed-upon property improvements. Borrower must report the Property’s annual Energy Performance Metrics, including ENERGY STAR score.
For current Fannie Mae apartment loan mortgage rates and custom quotes, contact our multifamily lenders in Dallas
Call For a Quote:
(214) 679-9673
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;