Fannie Mae Multifamily Loan Options 

Fannie Mae offers a wide variety of options when it comes to multifamily and apartment financing. The fact that Fannie Mae multifamily loans are non-recourse, offer 30-year fixed rate financing, and up to 80% leverage makes them incredibly attractive to commercial real estate investors of all kinds. 

Fannie Mae DUS Loan Program

The Fannie Mae DUS Loan Program is Fannie Mae's most popular multifamily financing product, offering terms including: 

  • Loan Size: $3 million with no upper limit 
  • Unit Requirements: 5 unit minimum 
  • Leverage: 80% maximum LTV allowance 
  • Additional Financing: Mezzanine financing available 
  • Rate locks: Yes, both early and extended available 
  • Recourse: Non-recourse (standard carve-outs apply) 
  • DSCR: Minimum 1.25 DSCR 
  • Assumability: Assumable (with lender approval and 1% fee)  

In addition to the terms mentioned above, 35% of space on DUS loan properties can be filled by commercial tenants (capped at 20% of rental income). Plus, DUS loans are available for multifamily properties that have a large concentration of student or military tenants (up to 80% allowed). However, projects with military or student tenant concentrations above 80% are required to use Fannie Mae's military or student housing programs. 

Fannie Mae Multifamily Small Loan Program 

For borrowers looking for smaller multifamily loans with faster, more streamlined processing, the Fannie Mae Multifamily Small Loan Program could be the perfect fit. This program offers terms including: 

  • Loan Size:  Between $750,000 and $5 million ($3 million in smaller markets) 
  • Unit Requirements: 5 unit minimum 
  • Leverage: 80% maximum LTV allowance 
  • Closing Costs: Borrowers can finance up to 3% of closing costs 
  • Documentation: No tax return requirement 
  • Interest Options: Fixed and hybrid ARM interest options available 
  • DSCR: Minimum 1.25 DSCR 

In addition to not requiring tax returns, these loans typically require less stringent documentation when it comes to physical needs and environmental assessments. And, just like DUS loans, Fannie Mae Small Loans have a 35% commercial space limit and a 20% rental income limit for commercial tenants. 

fannie Mae Affordable Housing Loan Program 

Investors who want to finance or refinance an affordable housing development need look no further than the Fannie Mae Affordable Housing Loan Program. The Affordable Housing Loan Program is available specifically for properties with Section 8 Housing Assistance Program (HAP) contracts and expiring LIHTC properties. This program offers: 

  • Loan size: $1 million or more 
  • Leverage: 80% maximum LTV allowance
  • Amortization: 30 years 
  • DSCR: Minimum 1.15 DSCR 
  • Underwriting: Flexible underwriting guidelines
  • Assumability: Assumable (with lender approval and 1% fee)  

Moderate Rehabilitation Supplemental Loans for Affordable Properties 

In addition to its traditional Affordable Housing Loan Program, Fannie Mae also offers supplemental loans for moderate rehabilitation of affordable properties. In many cases, these loans can be significantly less expensive than refinancing the property. These loans offer terms including: 

  • Interest Options: Fixed and variable rate loans available 
  • Loan Term: 5-30 years, must terminate at the same time as the original mortgage 
  • Amortization: Up to 35 years 
  • Rate locks: 30-180 day locks available

Fannie Mae Seniors Housing Loan Program

The Fannie Mae Seniors Housing Loan Program is a great choice for developing properties that specifically provide independent living, assisted living, or Alzheimer’s/Dementia care for senior citizens. This loan program offers terms including: 

  • Loan size: $5 million minimum (with some exceptions) 
  • Loan term: 5 to 30 years
  • Amortization: 30 years 
  • DSCR: 1.30 (for 100% independent living), 1.40 (for projects with 50% or more assisted or Alzheimer’s/Dementia care, 1.45 (for 100% Alzheimer’s/Dementia care projects) 
  • Leverage: 80% maximum LTV allowance
  • Rate locks: 30-90 day locks available, extended rate locks may allow borrowers to lock rate up to 1 year before closing
  • Assumability: Assumable (with lender approval and 1% fee)  

Fannie Mae Student Housing Loan Program 

For housing developments that have an 80% or higher concentration of undergraduate or graduate students, the Fannie Mae Student Loan Housing Program can be an excellent fit. To be eligible, projects cannot be on university-owned land, cannot have dining facilities, and typically need 12-month leases co-signed by parents. The Fannie Mae Student Loan Housing Program offers terms including: 

  • Loan size: $1 million minimum
  • Loan term: 5 to 30 years
  • Amortization: Up to 30 years 
  • Leverage: 75% maximum LTV
  • Interest Options: Fixed and adjustable rates available
  • DSCR: 1.30 minimum
  • Rate locks: Rate locks available at commitment (extended 6 month locks also available) 
  • Assumability: Assumable (with lender approval and 1% fee)  

Fannie Mae Military Housing Loans 

For projects with a 20% or higher concentration of military tenants, especially those near military bases, the Fannie Mae Military Housing Loan Program can provide an effective source of financing. The terms of the Fannie Mae Military Housing Loan Program include: 

  • Loan size: $1 million minimum, no maximum
  • Unit Requirements: 5 unit minimum
  • Leverage: 75% maximum LTV
  • Interest Options: Fixed and adjustable rates available
  • DSCR: 1.30 minimum
  • Assumability: Assumable (with lender approval)  

Fannie Mae Cooperative Apartment Loans 

Through its Cooperative Multifamily Loan Program, Fannie Mae offers loans for cooperative apartments, in which residents collectively own the building, and the units are leased back to the shareholders. The program's terms include: 

  • Loan size: $1 million minimum, no maximum
  • Loan term: 5 to 30 years
  • Amortization: Up to 30 years 
  • Leverage: 55% maximum LTV
  • DSCR: 1.00 minimum (actual operations), 1.55 (based on market rents) 
  • Assumability: Assumable (with lender approval)  

fannie Mae Manufactured Community Housing Loans

For manufactured housing communities or mobile home parks with a minimum of 50 pad sites, Fannie Mae offers financing through its Manufactured Housing Loan Program. The program's terms include: 

  • Loan size: $1 million minimum, no maximum
  • Loan term: 5 to 30 years
  • Amortization: Up to 30 years 
  • Leverage: 75%-80% maximum LTV
  • DSCR: 1.25 minimum
  • Rate locks: Rate locks available at commitment (extended 6 month locks also available) 
  • Assumability: Assumable (with lender approval)  

In addition to having at least 50 pad sites, parks must be: 

  • Paved
  • Offer off-street parking
  • Have 75% of homes be owned by tenants
  • Not offer pad sites for sale to tenants
  • Hitches/jacks must be concealed 

Fannie Mae Green Multifamily Financing

For eligible properties, Fannie Mae Green Financing is available for acquisitions, refinancing, and supplemental financing. The three main types of Green Multifamily Financing include: 

  • Green Rewards: The Green Rewards program includes a free energy and water audit, and both fixed and variable rate loan options. 
  • Green Building Certification: To qualify for Green Building Certification financing, a building must be certified under an approved program; approved programs include Energy Star Multifamily, LEED BD+C, and NGBS Green Multifamily Building Certification, among others. 
  • Green Preservation Plus: The Green Preservation Plus program is designed specifically to finance water and energy efficiency upgrades for multifamily affordable housing (MAH) projects. 

Fannie Mae Green Financing Terms 

Fannie Mae Green financing terms include: 

  • Loan size: Varies, depends on individual situation
  • Loan term: Up to 30 years
  • Amortization: Up to 30 years (Green Rewards, interest-only options available), up to 40 years (Green Preservation Plus) 
  • DSCR: 1.25 minimum (Green Rewards/Green Building Certification conventional), 1.20 minimum (Green Rewards/Green Building Certification affordable), 1.15 minimum (Green Preservation Plus) 
  • Leverage: 80% maximum LTV (Green Rewards/Green Building Certification), 85% maximum LTV (Green Preservation Plus) 
  • Documentation: In some situations, energy and water audits paid for by Fannie Mae 
  • Interest Options: Fixed and adjustable rates available (Green Rewards/Green Building Certification), Fixed-rate only for Green Preservation Plus 
  • Rate locks: 30-180 day rate locks (early/extended rate locks also available) 
  • Assumability: Assumable (with lender approval and 1% fee)  

Like the Fannie Mae DUS loan, Green Financing projects are permitted to have up to 35% of the rentable area used for commercial property, which can contribute a maximum of 20% of a project's effective gross income. 


Want to learn more about Fannie Mae loans? Fill out the form below and a Fannie Mae loan specialist will get in touch. 

Fill out the form below to speak with a Fannie Mae specialist