Demystifying the Features of Fannie Mae’s Small Apartment Loan Program

 

During the economic crisis, many banks that traditionally made loans to owners of small apartment properties have either left the business or cut back on lending. This has left many owners of small apartment properties with limited borrowing choices. One lender that has stuck with small multifamily market and even expanded their outreach is Fannie Mae. A number of Fannie Mae’s small apartment loan program lenders have embraced this loan program and its being marketed by almost every loan broker/banker in the country. 

The Fannie Mae’s small apartment loan program is entirely different from bank loans that most owners are familiar with and many of the brokers/bankers who are selling the program don’t really know how it works. Hopefully, here you will get all the information to understand these loans better and make it easier for you to evaluate these loan programs.

Who Can Be Benefited the Most Taking Fannie Mae’s Small Apartment Loan Program?

Whether you are a first-time investor new to apartment loans or a long-time investor experienced with multifamily loans, the ideal lender has the knowledge and expertise to guide you to the Fannie Mae’s small apartment loan program that fit your needs. Visiting an ideal source about gathering information for Fannie Mae’s small apartment loan programs you need are today within easy reach.

With guidance from the source, apartment financing for multifamily housing is easy to navigate. Their expertise with various multifamily loans including Fannie Mae and Freddie Mac multifamily loans, and FHA multifamily loans will keep your multifamily investment working for you.

Truly, real estate investments require expert advice and direction. The ideal source you choose has to be well-versed and experts who will find you the best mortgage rates today so that you can move closer to return on your multifamily investment. 

Features of Fannie Mae’s Small Apartment Loan Program

•  The small balance apartment loan programs range in size from $500,00 to $5,000,000
• Comes with specific requirements and pricing based on your investment objectives
• Supports multifamily units up to 5 or more
• Applied to existing or newly constructed
• Can be owned by garden style, two story, three story, bungalows, townhouse style or condo conversions
• Mixed-use commercial/residential acceptable to 25% commercial use
• Mobile home parks eligible for apartment loan program with 15+ pads

The Fannie Mae’s Small Apartment Loan Program Types:

• Purchase
•  Refinance
• Refinance with Cash Out
• Commercial Equity Lines
• Short Term Bridge
• Construction on a Case by Case Basis

Special Features of Fannie Mae’s Small Apartment Loan Program:

• Adjustable 3,5,7,10,15 fixed-rate terms   
• 15 and 30 year amortizations
• Market indices vary
• Prepayment penalty
• Loan-to-value: up to 80%
• 10% seller 2^nd allowed on case-by-case basis
• No lender points
• No replacement reserves
• Monthly/Annual leases acceptable
• Suitable leases with bank statements
• No balloon or call provisions
• Interest only options
• Minimum DSCR of 1:15:1
• Standard 1% fee at closing
• No outside legal fees
• 60 day rate lock available with a 1% refundable fee
•  Limited impound requirements
• Assumable at lender discretion
• Up to 3% seller concession allowed on purchases
• Nationwide coverage

Property management experience is generally required for properties with 12 or more units, or property management letter and resume may be substituted. Competitive closing costs for apartment loans to $5million. Costs include standard third party reports including inspection, appraisal, engineering, environmental, lender fees, document fees, and in-house legal.

If you want a trusted source to have a loon into Fannie Mae’s small apartment loanprogram, ALB Commercial Capital is the best choice to take into account. Visit to know more about Fannie Mae’s small apartment loan program.