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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

Yield maintenance and graduated prepayment options available.
Completely open prepayment during the adjustable rate period.

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

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.

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

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

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.