Fannie Mae® Multi-family offers subordinate financing options for multifamily properties with an existing Fannie Mae® Mortgage Loan.
- Lower cost than refinancing
- Access to additional capital
- Flexible loan terms
- Certainty of execution
- Speed in processing and underwriting
- Stabilized Conventional Properties, Multifamily Affordable Housing Properties, Seniors Housing Properties, Student Housing Properties, and Manufactured Housing Communities
- Subordinate to existing Fannie Mae fixed rate or variable rate
- Bond Credit Enhancement Mortgage Loans are eligible for Supplemental Mortgage Loans with prior approval of Fannie Mae
- Lender must be the Servicer of the existing Fannie Mae Mortgage Loan
- Fannie Mae must be the only debt holder on the Property
|A minimum of 5 years and a maximum of 30 years. May be either coterminous or non-coterminous with the Maturity Date of the Senior Mortgage Loan.|
|Permitted if the Pre-Existing Mortgage Loan was
designated as eligible for a Tier Dropping
Supplemental Mortgage Loan and the combined UPB
of the Pre-Existing Mortgage Loan and the
Supplemental Mortgage Loan meet the minimum
DSCR and maximum LTV requirements for a Tier 2
Up to 30 years.
Fixed-rate and variable-rate options available.
As high as 75%, depending upon asset class and use of proceeds.
As low as 1.30x, depending upon asset class and use of proceeds.
Supplemental Loan Timing
|Supplemental Mortgage Loans are available 12 months after the closing of the senior|
Fannie Mae Mortgage Loan.
Supplemental Mortgage Loans may be voluntarily prepaid upon payment of yield maintenance for fixed rate loans and graduated prepayment for variable rate loans.
|Rate Lock||30-day to 180-day commitments. Borrower may Rate Lock using the Streamlined Rate Lock option.|
|Accrual||30/360 and Actual/360.|
|Recourse||Non-recourse execution with standard recourse carve-outs required for “bad acts” such as fraud and bankruptcy.|
|Escrows||Replacement Reserve, tax and insurance escrows are typically required, based on the resulting Underwriting Tier of the combined Pre-Existing Mortgage Loans and Supplemental Mortgage Loan.|
|Third-Party Reports||Standard third-party reports, including Appraisal, Phase I Environmental Assessment, and a Property Condition Assessment, may not be required, if certain conditions are met.|
|Assumption||Supplemental Mortgage Loans are typically assumable with a concurrent assumption of the senior Mortgage Loans, subject to review and approval of the new borrower’s financial capacity and experience.|
During the HomeStreet Bank pre-qualification review, our Commercial Real Estate Group team members will estimate the loan amount and associated transaction fees. Actual loan amounts and transaction-related expenses may vary. A pre-qualification estimate is not a loan commitment. Terms and conditions may apply.
FannieMae® is a registered trademark of Fannie Mae. DUS® is a registered trademark of Fannie Mae.
All loans subject to approval.