One of the most popular multifamily loan options in the industry because it allows for cash-out refinancing, and have both fixed rate, variable rate, and interest-only options.

Size: $3 million+ (no set maximum, but smaller loans may be available on a case-by-case basis)

Terms: 5, 7, 10, 12, 15, 18, 20, 22, 25, and 30 year fixed-rate loan terms available, variable-rate (with option to convert to fixed-rate) and interest-only loan options are also available

Amortization: Up to 30 years, most loans are balloon loans, hybrid options may be available for a fee

Maximum LTV: 80%, 75-80% for cash-out refinances

Minimum DSCR: 1.25x

Recourse: Most loans are non-recourse with standard “bad boy” carve-outs

Prepayment Options: Yield maintenance or 1% prepayment penalty, whichever is larger

Credit Requirements: Credit score of 680+ typically required (this may be somewhat flexible, depending on the situation)

Eligible Borrowers: Borrowers must typically be a U.S. bankruptcy-remote, single asset Single Purpose Entity (SPE), though this may vary by lender. Partial, indirect foreign ownership is allowed with proper structuring.

Eligible Properties:

Properties with 5+ units are eligible for Fannie Mae DUS loans, including:

• Town homes

• Co-ops

• Mixed-use commercial/residential properties

• Condos

• Properties with tenant-based Section 8 contracts

However, some property types are ineligible for Fannie Mae DUS loans, including:

• Properties with a homeowner's association (HOA)

• Fractured ownership condos

• Housing Assistance Program properties (these are eligible for Fannie Mae Multifamily Affordable Housing Loans)

• Non-contiguous town homes or duplexes (these may be eligible with a waiver, but that can be difficult to obtain)

• New construction developments or properties that require substantial rehabilitation

• Properties involving a healthcare component

Advantages:

• Very competitive interest rates

• Up to 80% LTV

• Most loans are non-recourse

• Supplemental loans are permitted after 12 months

• 30- 180 day rate locks available after commitment (some lenders may allow rate locks of up to 1 year)

• Mezzanine financing is available

• Interest-only payment options are also available

• Loans are assumable with lender approval

Disadvantages:

• Requires replacement reserves

• Typically requires 85% physical occupancy, 80% economic occupancy for 90 days before closing

• Requires third-party reports including an Appraisal, a Physical Needs Assessment, and a Phase I Environmental Assessment

• Requires a $20,500 application deposit and a $3,000 processing fee

• Absentee owners typically need to hire third-party management, and need a strong track record in the multifamily industry (local owners typically do not)

• Subordinate debt is not allowed

• Often requires a credit score of 680 (though this may be flexible)

Designed to finance small investment

Size: $1 million to $6 million

Terms: 5-30 year fixed-rate loan terms available, adjustable-rate and hybrid ARM options also available. Partial and full-term interest-only may also be available.

Amortization: Up to 30 years

Maximum LTV: 80%, 75% for refinances

Minimum DSCR: 1.25x

Recourse: Most loans are non-recourse with standard “bad boy” carve-outs

Prepayment Options: Yield maintenance or a declining prepayment premium (step-down)

Eligible Properties: Conventional multifamily properties, Multifamily Affordable Housing (MAH) properties; seniors housing developments, and student housing developments with 5+ units, and manufactured housing communities (MHCs) with 50+ pad sites.

Eligible Borrowers: Typically must have a net worth equal to the loan amount and liquid assets equal to 6 months mortgage payments

Commercial Limits: Commercial space must be no more than 35% of the project's net rentable area and must contribute no more than 20% of its effective gross income

Timing: Loans typically close between 45-60 days after application

Credit Requirement: Typically requires a credit score of 680+ (though this may vary by lender)

Advantages:

• Very competitive interest rates

• Up to 80% LTV allowance

• Streamlined processing/documentation

• Capital improvements may be included in the loan amount

• Most loans are non-recourse

• Supplemental loans are allowed after 12 months

• 30- 180 day rate locks available after commitment (extended rate locks also available)

• No processing fees (except with written approval)

• Non-recourse loans are assumable with lender approval and a 1% fee

Disadvantages:

• Requires replacement reserves ($250 per unit minimum)

• Typically requires 90% physical occupancy for 12-months before closing. This period may be reduced to 90 days under some circumstances.

• Requires third-party reports including an Appraisal, reduced Physical Needs Assessment and an Environmental Screen

• Requires a $10,000 application deposit

• Typically requires between $4,500 and $13,000 in lender fees (including due diligence fees and third-party reports, though this may vary by lender)

• Rate lock deposit of 1-2% typically required (refunded at closing)

It offers fixed and variable rate loan terms of up to 30 years, but, due to the higher risk of cooperative apartments, has a somewhat lower maximum LTV allowance of 55%.

Size: $750,000 to $1 million minimum, no maximum

Terms: 5-30 year fixed-rate loan terms available

Amortization: Up to 30 years

Maximum LTV: 55%

Minimum DSCR: 1.00x (actual operations), 1.55 (market rents)

Recourse: Most loans are non-recourse with standard “bad boy” carve-outs

Prepayment Options: 1% or yield maintenance, whichever is greater

Commercial Limits: Some commercial space is allowed, but can vary based on specific project

Eligible Properties:

• Must typically be managed by a property management firm with experience managing similar properties

• The cooperative organization must charge enough maintenance fees to achieve a balanced budget

• The cooperative must maintain a reserve balance of at least 10% of the property's annual maintenance fees

• In general. the Sponsor cannot own more than 40% of the property's units

Advantages:

• Competitive interest rates

• Most loans are non-recourse

• Supplemental loans are allowed

• 30- 180 day rate locks available after commitment (extended rate locks also available)

• Loans are fully assumable with lender approval

Disadvantages:

• Requires replacement reserves ($250 per unit minimum)

• Typically requires 85% physical occupancy and 70% economic occupancy 90 days before closing

• Requires third-party reports including an Appraisal, Property Condition Assessment, and a Phase I Environmental Assessment

• Requires a $12,500 application deposit and a $3,000 processing fee

For the investor searching for a flexible, shorter-term financing solution for your multifamily property.

Size: $1 million minimum loan amount

Terms: 7 years

Use: Acquisition or refinance of stabilized multifamily properties

Amortization: Up to 30 years

Interest Rate: Based on the 1-month LIBOR

Interest Rate Cap: 4.00% + guarantee fee rate and servicing fee rate, interest rates cannot increase or decrease more than 1.00% per month

Maximum LTV: 80%, 75% for cash-out refinancing

Minimum DSCR: 1.00 (at max. lifetime interest rate)

Recourse: Most loans are non-recourse with standard “bad boy” carve-outs for fraud and other bad acts, loans less than $3 million may be recourse in some areas

Prepayment Options: Yield maintenance or declining prepayment premiums

Occupancy Requirements: 85% physical occupancy, 70% economic occupancy, 90% physical occupancy for loans under $3 million

Fixed-Rate Conversion: The ARM 7-4 can be converted to a fixed-rate loan on any rate-change date between the first day of the second year of the loan and the first day of the sixth year of the loan. No pre-payment penalty is due upon conversion to fixed-rate financing.

Timing: Loans typically take between 45 and 60 days from application to closing

Eligible Borrowers: Most lenders and Fannie Mae prefer borrowers to be a single asset Single Purpose Entity (SPE), though a waiver may be available in certain situations.

Eligible Properties:

• Stabilized properties with 5-50 units

• Multifamily affordable properties (no size limitations)

• Manufactured housing communities

Advantages:

• Competitive interest rates

• Most loans are non-recourse

• 30- 180 day rate locks available after commitment (with an additional fee)

• Loans are fully assumable with lender approval and a 1% fee

Disadvantages:

• Requires third-party reports including a property appraisal, property condition assessment, and a Phase I Environmental Assessment

• Requires replacement reserves (minimum of $250/unit per year)

• $12,500 application deposit and $3,000 processing fee required

• 1% origination fee also required

• Does not allow for supplemental financing before conversion to a fixed-rate loan

• 2% deposit due at rate lock (refunded after Fannie Mae purchases loan, usually around 30 days post-closing).

Investor who wants to create a good source of affordable financing for manufactured housing communities. It is non-recourse and is fully assumable (with lender approval and a 1% fee.)

Size: $3 million minimum loan amount

Terms: 5-30 years

Use: Acquisition or refinance

Amortization: Up to 30 years, interest-only options may be available

Interest Rates: Fixed and variable-rate options available

Maximum LTV: 80%, 75% for cash-out refinancing

Minimum DSCR: 1.25x

Recourse: Loans are non-recourse with standard “bad boy” carve-outs

Prepayment Options: Yield maintenance or declining prepayment premiums

Occupancy Requirements: 90% physical occupancy, no more than 5% can be non-owner occupied

Eligible Borrowers: Borrowers typically need to be single asset U.S. entities. At least one principal should have experience owning and operating manufactured housing communities.

Eligible Properties:

• Properties must have at least 50 pad sites

• 50% or more of sites must be double-wide

• 3-5 star property rating required

• No more than 25% of homes can be owner-occupied

• Density must not typically be beyond 12 homes per acre (for established communities), or 7 homes per acre (for new communities)

• Leases 2 years or longer must not come with a purchase option

Advantages:

• Competitive interest rates

• Loans are non-recourse

• 30- 180 day rate locks available (streamlined rate locks also available)

• Supplemental financing permitted after 12 months

• Commercial space is allowed

Disadvantages:

• Requires third-party reports including an Appraisal, Property Condition Assessment, and a Phase I Environmental Assessment

• Requires replacement reserves (minimum of $250/unit per year)

• $12,500 application deposit and $3,000 processing fee required

• 1% minimum origination fee also required

• 2% good faith deposit required

• Replacement reserves required ($50 minimum per pad site/year)

For the multifamily developer or investor looking for a hybrid ARM financing for your property.

Size: Varies, typically $3 million maximum in smaller markets and $5 million maximum in larger markets

Terms: 30 years, with a 5, 7, or 10-year fixed rate term, which then converts to an adjustable-rate for the rest of the loan

Amortization: Up to 30 years

Interest Rates: Adjustable rate term based on 6-month LIBOR rate

Interest Rate Cap: Adjustable interest rate cannot exceed the initial interest rate by more than 5%, rate cannot be adjusted more than 1% up or down during each adjustment period

Maximum LTV: Up to 80%

Minimum DSCR: 1.25x (may vary based on market location)

Recourse: Loans are non-recourse with standard “bad boy” carve-outs

Prepayment Options: Yield maintenance or declining prepayment premiums during fixed-rate term, no prepayment fees during the adjustable-rate term

Eligible Properties:

• Properties must have at between 5 and 50 units

• Properties must be stabilized, and can include manufactured housing communities

• For acquisitions or refinances, loans must be first lien

Advantages:

• Competitive interest rates

• Less fees than comparable Fannie Mae loans

• Loans are non-recourse

• Flexible prepayment options

• 30- 180 day rate locks available (streamlined and early rate locks also available)

Disadvantages:

• Requires third-party reports including a property appraisal, property condition assessment, and a Phase I Environmental Assessment

• Replacement reserves are required

• Supplemental financing is not available.

It allows 5% more in loan proceeds in order to make green improvements and provides higher LTV.

Size: Varies

Terms: Up to 30 years

Amortization:

• Green Rewards: Up to 30 years (interest-only options also available)

• Green Preservation Plus: Up to 40 years, 30 years for balloon loans

Interest Rates:

• Green Rewards and Green Building Certification: Fixed and adjustable-rate loans available

• Green Preservation Plus: Fixed-rate only

Maximum LTV:

• Green Rewards and Green Building: Up to 80%

• Green Preservation Plus: Up to 85%

Minimum DSCR:

• Green Rewards: 1.25x for market rate properties, 1.20x for affordable properties

• Green Building Certification Pricing Break: 1.25x for market rate properties, 1.20x for affordable properties

• Green Preservation Plus: 1.15x

Recourse: Most loans are non-recourse with standard “bad boy” carve-outs

Prepayment Penalty: Yield maintenance and other declining prepayment options available

Occupancy Requirements: 85% physical occupancy 90 days before closing, 70% economic occupancy

Commercial Space Limits: Commercial space must not exceed 35% of the net rentable area and 20% of the project's effective gross income

Eligible Properties:

• Market-rate, affordable, senior, military housing, and cooperative properties all eligible

• Borrowers need to agree to target a minimum 25% reduction in energy or water use

Advantages:

• 0.10% interest rate discount provided

• Larger loan sizes permitted (for Green Rewards and Green Preservation Plus)

• Competitive interest rates

• Most loans are non-recourse

• 30- 180 day rate locks available (early/extended rate locks are also available)

Disadvantages:

• Requires third-party reports including an appraisal, property condition assessment, Phase I Environmental Assessment, and a High Performance Building (HPB) report (for Fannie Mae Green Rewards and Green Preservation Plus)

• $12,500 application deposit required

• $3,000 non-refundable processing fee required

• 1% loan origination fee required

• 2% good faith deposit due at rate lock (refundable at closing)

• Replacement reserves of $250/unit/year required

• Subordinate financing not allowed without written approval

Multifamily investors who want adjustable-rate.

Size: Varies

Terms: 7 years

Amortization: Up to 30 years (interest only options available for eligible borrowers)

Interest Rate: Based on the 1-month LIBOR plus a margin

Interest Rate Cap: Determined at rate lock, interest rates cannot increase or decrease more than 1.00% per month

Maximum LTV: 80%

Minimum DSCR: 1.00 (at max. lifetime interest rate)

Recourse: Most loans are non-recourse with standard “bad boy” carve-outs for fraud and other bad acts, loans less than $3 million may be recourse in some areas

Prepayment Options: 1 year lockout, then a 1% prepayment premium during the adjustable-rate period, though this is waived for the last three months

Occupancy Requirements: 85% physical occupancy, 70% economic occupancy, 90% physical occupancy for loans under $3 million

Commercial Space Limits: Commercial space must be no more than 35% of the net rentable area and must produce no more than 20% of the property's income

Fixed-Rate Conversion: The ARM 7-6 can be converted to a 10/9.5 or a 7/6.5 fixed yield maintenance loan any time between the first day of the second year of the loan and the first day of the sixth year of the loan, without any prepayment penalties. The amount of the loan cannot increase, but borrowers can apply for supplemental financing.

Advantages:

• Competitive interest rates

• Most loans are non-recourse

Disadvantages:

• Requires third-party reports including a property appraisal, property condition assessment, and a Phase I Environmental Assessment

• Requires replacement reserves (minimum of $250/unit per year)

• $12,500 application deposit and $3,000 processing fee required

• 1% origination fee also required

• Does not allow for supplemental financing before conversion to a fixed-rate loan

• Only 30 day rate lock commitments are available (for a fee)

For the investor or developer looking to finance a large multifamily property with an adjustable-rate mortgage.

Size: $25 million minimum loan amount

Terms: 5, 7, or 10 years

Amortization: Up to 30 years

Interest Rate: Based on the 1-month or 3-month LIBOR, both convertible and non-convertible options are available

Interest Rate Cap: No built-in caps, borrowers need to purchase an interest-rate cap from an approved provider. Initial interest rate caps must be at least 4 years, but, if the interest rate cap is smaller than the loan term, the borrower must put funds in escrow monthly for the next cap.

Maximum LTV: Up to 75%

Minimum DSCR: 1.00 (at max. interest rate)

Recourse: Loans are non-recourse with standard “bad boy” carve-outs

Prepayment Options: 1 year lockout, then a 1% prepayment premium or declining prepayment premium

Occupancy Requirements: 85% physical occupancy, 70% economic occupancy

Commercial Space Limits: Commercial space must be no more than 35% of the net rentable area and must produce no more than 20% of the property's income

Eligible Properties: Properties must be stabilized; can include market rate, affordable, student housing, military housing, seniors housing, and manufactured housing community properties

Advantages:

• Competitive interest rates

• Loans are non-recourse

Disadvantages:

• Requires third-party reports including a property appraisal, property condition assessment, and a Phase I Environmental Assessment

• Requires replacement reserves (minimum of $250/unit per year)

• $12,500 application deposit and $3,000 processing fee required

• 1% origination fee also required

• Does not allow for supplemental financing before conversion to a fixed-rate loan

• Only 30 day rate lock commitments are available

Size: No minimum or maximum loan amount (however, non-syndication structured ARMs must be $5 million or more)

Terms: 7 years (10 year option for Structured ARMs)

Amortization: Up to 30 years (interest only options available for eligible borrowers)

Interest Rate: Based on the 1-month LIBOR plus a margin

Interest Rate Cap: Determined at rate lock, interest rates cannot increase or decrease more than 1.00% per month

Maximum LTV: 80%

Minimum DSCR:

• ARM 7-6: 1.00x (at max. lifetime interest rate)

• Structured ARM: 1.00x (using a variable underwriting rate)

Recourse: Most loans are non-recourse with standard “bad boy” carve-outs for fraud and other bad acts, loans less than $3 million may be recourse in some areas

Prepayment Options: 12 month lockout (6 months with prior approval), then a 1% prepayment premium during the adjustable-rate period, though this is waived for the last three months. Structured ARMs allow a 12 month lockout, followed by a declining prepayment premium, starting at 4% in the second year and going down to 1% per year by the fifth year (where it will stay until the last three months of the loan.)

Occupancy Requirements: 85% physical occupancy, 70% economic occupancy, 90% physical occupancy for loans under $3 million

Commercial Space Limits: Commercial space must be no more than 35% of the net rentable area and must produce no more than 20% of the property's income

Fixed-Rate Conversion: The ARM 7-6 can be converted to a fixed-rate loan on any rate change date between the first day of the second year of the loan and the first day of the sixth year of the loan, without any prepayment penalties. Structured ARMs can be converted to a fixed-rate loan on any rate change date between the first day of the second year of the loan and the first day of the third month before the end of the loan. The amount of the loan cannot increase, but borrowers can apply for supplemental financing.

Advantages:

• No minimum or maximum loan amount (for ARM 7-6 loans)

• Competitive interest rates

• Loans are non-recourse

Disadvantages:

• Requires third-party reports including a property appraisal, property condition assessment, and a Phase I Environmental Assessment

• Requires replacement reserves (minimum of $250/unit per year)

• $12,500 application deposit and $3,000 processing fee required

• 1% origination fee also required

• Does not allow for supplemental financing before conversion to a fixed-rate loan

• Only 30 day rate lock commitments are available

Size: Varies

Terms: 5-30 years, must end at the same time as the original mortgage loan

Amortization: Up to 35 years

Interest Rates: Fixed and variable-rate loan options available

Maximum LTV: LTV of up to 85% (varies based on specific property type, and may be up to 90% for earn-outs and other, specific situations)

Minimum DSCR: As low as 1.15x (depending on specific property type)

Recourse: Loans are non-recourse with standard “bad boy” carve-outs

Rehab Requirements: Property improvements must average at least $8,000/unit, and at least 60% of the budget should be allocated to improving interior units

Eligible Properties:

• Must already have a original Fannie Mae mortgage for moderate rehabilitation

• Fannie Mae must be the only debt-holder on the property

• Lender must be servicer of the original Fannie Mae mortgage loan

Advantages:

• Fast underwriting and approval process

• Competitive interest rates

• Loans are non-recourse

• 30-180 day rate locks (streamlined rate locks also available)

• Lower cost than refinancing

• Not subjected to Fannie Mae's "one supplemental loan" rule

• No waiting period, can be originated within 36 months of the original moderate rehabilitation loan

Disadvantages:

• Requires third-party reports including a property condition assessment and a Phase I Environmental Assessment (may not be required in certain circumstances)

• Fannie Mae must be the only debt-holder on the property

Investor interested in purchasing a subsidized rental housing property, such as a property with expiring Low-Income Housing Tax Credits (LIHTC), a HUD Section 8 Housing Assistance Program (HAP) contract, or a property using another similar government housing subsidy program.

Size: Varies

Terms: 5-30 years, must end at the same time as the original mortgage loan

Amortization: Up to 35 years

Interest Rates: Fixed and variable-rate loan options available

Maximum LTV: Up to 80%, 75% for cash-out refinances

Minimum DSCR: As low as 1.20x for fixed-rate properties

Recourse: Loans are non-recourse with standard “bad boy” carve-outs

Prepayment Penalty: Yield maintenance and declining prepayment premium options available

Third-Party Subordinate Debt: Allowed under certain circumstances: hard debt must be issued by a non-profit, public, or quasi-public entity and combined DSCR cannot go below 1.05x, while soft third-party subordinate debt payments cannot exceed 75% of property cash flow "after payment of senior liens and property operating expenses"

Eligible Properties:

Eligible properties include:

• Expiring Low Income Housing Tax Credit (LIHTC) deals

• Properties refinancing existing tax-exempt bonds

• Rental Assistance Demonstration (RAD) eligible properties

• HUD^® Section 8 Housing Assistance Program (HAP) Contract properties

• Loans insured under Sections 202 or 236 of the National Housing Act

• Properties with existing Rural Housing Service (RHS)/Rural Development (RD) Section 515 and RD Section 538 Loans

Plus, properties must meet low-income restrictions by:

• Having at least 20% of the project's units rented to families earning less than or equal to 50% of the Area Median Income (AMI), or:

• Having at least 40% of the project's units rented to families earning less than or equal to 60% of the Area Median Income (AMI), or:

• Section 8/Project-Based Housing Assistance Payments for at least 20% of the project's units

Assumability: Loans are typically assumable with lender approval

Advantages:

• Competitive interest rates

• Loans are non-recourse

• 30-180 day rate locks (streamlined rate locks also available)

• Supplemental financing is allowed

• Third-party subordinate debt allowed under certain circumstances

Disadvantages:

• Requires third-party reports including a Property Condition Assessment/Physical Needs Assessment, an Appraisal, and a Phase I Environmental Assessment (may not be required in certain circumstances)

• Typically requires a $15,000 processing fee (which includes major third-party reports and lender due diligence)

• Typically requires replacement reserves of $250/unit per year

• 2% rate lock fee (refunded at closing)

Investors interested in financing a portfolio of multifamily properties typically a high degree of financial flexibility.

Size: $55 million minimum, with unlimited capacity for expansion

Terms:

• 15-year credit facility, with 5-15 year loans available for maturity laddering.

• Generally up to 15-year terms for fixed-rate loans, and 5-year terms for variable-rate loans (extensions may be available for a fee.)

• Up to 30 years for fixed or variable rate tax-exempt bond credit enhancement.

Interest Rates/Amortization:

• Fixed and variable-rate loan options available

• Fixed-rate loans generally have 30 year amortizations

• Variable-rate loans are generally structured ARMs

• Variable-rate loans typically require that the borrower purchases an interest rate cap (or other hedging arrangement to reduce borrower risk)

• For tax-exempt bonds, variable-rate loans can use a principal reserve fund instead of actual amortization

Fixed-Rate Conversion: Variable-rate options can be converted to fixed-rate (either in whole or part). If only part of the loan is converted to fixed-rate, a $25 million variable-rate portion must remain.

Maximum LTV: 80%

Minimum DSCR: 1.20x (depends on asset class and product type)

Recourse: Loans are non-recourse with standard “bad boy” carve-outs

Covenants: Are often required, may include borrower and corporate sponsor liquidity and net worth agreements

Prepayment Penalty: Partially pre-payable debt, yield maintenance and declining prepayment premium options available

Borrower Entity: "A single purpose, bankruptcy-remote entity is required for each borrower and any general partner, managing member, or sole member that is an entity. Borrowers must have common sponsorship."

Eligible Properties: Eligible properties include standard multifamily properties, student housing developments, and manufactured housing communities

Other Considerations: "Financial and operating covenants and geographic diversity requirements determined on a case-by-case basis."

Structure Options:

• Single or multiple loans

• Single or multiple collateral pools

• No rebalancing required or unused capacity fees

Assumability: For conventional financing, assumption is not allowed on an individual basis, but the entire credit facility can be assumed, with approval. Loans for properties using exempt financing can only be assumed if they are released from the credit facility.

Advantages:

• Competitive interest rates

• Loans are non-recourse

• 30-180 day rate locks (streamlined rate locks also available)

• Supplemental financing is available

• Fast closings

• Expansion allows quick addition of new properties

• Substitution of properties is also allowed

• Flexibility allows for the quick sale of properties based on market opportunities

Disadvantages:

• Requires third-party reports including Appraisals, Property Condition Assessments and Phase I Environmental Assessments

• Due diligence fee of $1500 per property

• 10 basis points structuring fee on each advance

• Other fees, including substitution, release, assumption, and review fees, may apply

• Cross-defaulted loans could mean higher risks for borrowers

A smart choice for increasing borrower leverage while reducing monthly debt service.

Size: No set minimum or maximum, but loans over $50 million required HUD^® approval

Terms: 15- 40 years

Amortization: Up to 40 years, 30 years for balloon loans

Interest Rates: Fixed-rate only

Maximum LTV: Up to 80% for existing properties, up to 90% for to-be-built properties "as stabilized"

Minimum DSCR: 1.15x for existing properties- 1.20x for to-be-built properties "as stabilized"

Recourse: Loans are non-recourse with standard “bad boy” carve-outs

Prepayment Penalty: Flexible prepayment options available

Eligible Properties:

• Multifamily Affordable Housing (MAH) properties with rent/income restrictions

• Rent/income restrictions must remain for the entire term of the loan

Advantages:

• Lower pricing than traditional Fannie Mae loans

• Loans are non-recourse

• 30-180 day rate locks available

• Loans are assumable (with lender approval)

Disadvantages:

• Requires third-party reports including a property condition assessment and a Phase I Environmental Assessment

• Requires replacement reserves

• HUD subsidy layering reviews may be required in some situations (including certain LIHTC transactions, properties with HAP Section 8 contracts, and properties using soft debt via state and local HOME funds)

Multifamily borrowers looking for one-size-fits-all fixed-rate financing

Size: Varies

Terms: 5-30 years

Amortization: Up to 30 years

Maximum LTV: 80% for conventional properties (other properties vary by asset class)

Minimum DSCR: 1.25x for conventional properties (other properties vary by asset class)

Recourse: Most loans above $750,000 are non-recourse with standard “bad boy” carve-outs

Prepayment Options: Yield maintenance or prepayment premium options available

Eligible Properties:

• Stabilized conventional properties, seniors housing properties, manufactured housing communities, student housing developments, and Multifamily Affordable Housing (MAH) developments

• Properties must have 5+ units (50+ pad sites for manufactured housing communities)

• Borrower must be credit-worthy and a U.S.-owned single-asset entity (indirect foreign ownership interest allowed with proper structuring)

Advantages:

• Very competitive interest rates

• Up to 80% LTV

• Most loans are non-recourse

• 30- 180 day rate locks available (streamlined rate locks also available)

• Loans are assumable with lender approval

Disadvantages:

• Requires replacement reserves

• Requires third-party reports including a property appraisal and a Phase I Environmental Assessment