FANNIE MAE SARM STRUCTURED ADJUSTABLE-RATE MORTGAGE LOANS
Fannie Mae Multifamily Mortgage for long term financing with convertible low variable interest rate to a fixed rate loan.
Apartment Loan Amount
1.00x, using a DSCR calculated based on a variable underwriting rate.
Fannie Mae DUS® Fixed Rate Multifamily Loan
Fannie Mae Structured Adjustable-Rate Mortgage Loans in Texas
Fannie Mae Multifamily Mortgage Lenders in DFW Dallas Fort Worth for long term financing with convertible low variable interest rate to a fixed rate loans.
Benefits
- Attractive low-cost financing
- Convertible to fixed-rate financing
- Flexible prepayment options
- Ability to choose interest rate cap
Eligibility
- Existing, stabilized multifamily properties, including: Conventional, Multifamily Affordable Housing. Seniors Housing, Student Housing, and Manufactured Housing Communities. Moderate Rehabilitation Loans may be eligible on a case-by-case basis
- Credit Enhancements and Substantial Rehabilitation are not eligible
- Loans of $25 million or more
- Loans for acquisition or refinance
Term
5, 7, or 10 years
Amortization
Up to 30 years
Maximum LTV
75%
Minimum DSCR
1.00x, using a DSCR calculated based on a variable underwriting rate. Mortgage loan amount shall not exceed that of a fixed-rate loan of similar terms.
Multifamily Mortgage Interest Rates
Interest rate adjusts based on changes to the underlying Index and is equal to the Index plus the Margin. No limit on rate changes.
Variable Underwriting Rate
Sum of (i) the Index, plus (ii) the investor spread, guaranty fee and servicing fee (the “Margin”), plus (iii) the interest rate cap escrow expressed as a percentage (if the cap term is shorter than the loan term), plus (iv) 3%, plus (v) the amortizing constant for that built-up rate.
Third Party Reports
Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.
Assumability
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
Conversion to Fixed Rate
Loans have a conversion feature whereby the interest rate may be converted to a 7- or 10-year fixed rate loan on any rate change date beginning with the first day of the second loan year and ending on the first day of the third month prior to maturity, provided the loan has not been delinquent during the previous 12 months and the Borrower is not in default under any loan document.
- No prepayment penalty charged at the time the SARM converts to a Fixed Rate.
- Minimal re-underwriting; Lender determines that the current Net Cash Flow can support the new
fixed-rate terms. - No increase in the loan amount; loan may be eligible for a Supplemental Loan.
Prepayment Options
After a one-year lock-out period, loans may be voluntarily prepaid. Lender selects the option of a declining prepayment premium or a 1% prepayment premium. No prepayment premium required during the last 3 months of the loan term. When refinancing into a fixed-rate product with Fannie Mae, the prepayment premium may be waived under certain conditions.
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® Bond Credit Enhancement Loan
Fannie Mae provides credit enhancement for tax-exempt multifamily housing revenue bonds that have low- and moderate-income occupancy restriction.
Fannie Mae DUS® Multifamily Affordable Housing (“MAH”) Preservation - Fixed Rate Loan
Non-recourse, fixed rate financing for the acquisition or refinance of stabilized multifamily rental properties that meet Fannie Mae’s definition of Affordable Housing.
Fannie Mae DUS® Manufactured Housing Property Lending Loan
Non-recourse, fixed and adjustable rate loans for the acquisition or refinance of stabilized manufactured home communities (MHC).