Fixed Rate Multifamily Program


Non-recourse, assumable fixed rate financing for the acquisition or refinance of stabilized multifamily rental or cooperative properties

Loan Amount

Minimum $3,000,000

Loan Terms

5, 7, 10 or 15 year balloon; 20, 25, or 30 year fully amortizing


25 or 30 years, based on property condition; interest-only financing is available

Loan to Value Maximum

Maximum 80% of appraised value, or if property has been purchased within the past 12 months, 80% of lower of: a) purchase price, plus value added renovation, plus 3% closing costs, or b) appraisal

Debt Service Coverage

1.25x minimum


Domestic single asset borrowing entity is required

Interest Rate

Risk-based pricing, varies with LTV and DSC ratios


Yield Maintenance with no lockout, Defeasance, or fixed, step-down prepayment schedules

Third Party Reports

MAI appraisal, Physical Needs Assessment, and Environmental Phase I Assessment are required, plus Seismic Report may be required for properties in Seismic Zone 3 and 4


Tax and insurance escrows are required; Funded Repair and Replacement escrow is required, based on engineer’s Physical Needs Assessment; For loans of less than 65% of value with no deferred maintenance, funding of repair and replacement reserve can be waived, at lender’s discretion

Application Fee

$15,000; covers 3rd party reports and processing/underwriting costs

Origination Fee

Fannie Mae requires minimum origination fee equal to 1% of loan amount for loans of $9 million or less; Minimum fee for loans over $9 million through $20 million is the greater of 0.8 percent or $90,000; Fees decrease further as increasing loan size; Origination fee can be charged “outside” of the interest rate as a separate fee, or it can be built into the rate

Legal Fees

$8,000 to $12,000 varying with characteristics of the deal


45-60 days from application to commitment; dependent on 3rd party report timing and borrower’s submission of due diligence

Rate Lock

Typically, lock occurs after commitment is issued; Early Rate Lock option is available, allowing rate lock within 3-4 weeks of application


Loan is assumable, subject to lender approval of proposed replacement borrower, Fees include 1% assumption fee, part of which is paid to Fannie Mae, and a $3,000 processing fee to cover lender’s underwriting expenses

Multifamily Financing Overview

Multifamily Financing OverviewProperty Types Financed
Typical Loan Structure

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Multifamily Reports

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