FANNIE HYBRID ARM
Fannie Mae’s Hybrid ARM offers small loan borrowers flexible, long-term financing w/ attractive prepayment options at competitive rates.
Apartment Loan Amount
Up to $6 million in all markets
Fannie Mae Hybrid ARM Multi-housing Loans
Asset Classes
Conventional Small Mortgage Loans and Manufactured Housing Communities
Loan Amount
Up to $6 million in all markets
Loan Term
7- or 10-year fixed-rate term followed by 23- or 20-year adjustable-rate term
Prepayment
Yield maintenance and graduated prepayment options available.
Completely open prepayment during the adjustable rate period.
Amortization
Up to 30 years
Debt Service Coverage
1.25x minimum DSCR
Loan to Value
Up to 75% maximum LTV for refinances and 80% for acquisitions
Index during adjustable rate term
6-month LIBOR
Margin during adjustable-rate term
0.80%, plus the Guaranty Fee Rate and the Servicing Fee Rate in effect at Rate Lock.
Maximum interest rate during adjustable-rate term
Starting with the conversion from the fixed interest rate to the adjustable interest rate and thereafter, maximum semi-annual interest rate adjustment of 1% up or down. Maximum lifetime interest rate to Borrower capped at 5% over the initial fixed rate.
Lifetime floor during adjustable-rate term
During the adjustable-rate term, the interest rate will never be less than the Margin
Occupancy
Properties must demonstrate a minimum occupancy of 90% for a 12-month period prior to commitment, with 90% for 90 days available on a case-by-case basis.
Net Worth & Liquidity
Net worth equals to the loan amount and liquidity equal to 9 months P&I required.
Recourse
Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy
Taxes & Insurance Escrows
Required for Tier II business and generally not required for Tiers III and IV
Replacement Reserve Escrows
Generally, not required for qualifying Borrowers
Assumptions
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience
Supplemental Financing
Supplemental Mortgage Loans are not available
Timing
45-60 days from complete application to commitment
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 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.