· commercial · 3 min read
Fannie Mae Multifamily Loans, Smart Financing for Apartment Investors
Learn how Fannie Mae multifamily loans can help you finance apartment buildings and multifamily properties in the US. Explore highlights, advantages, disadvantages, eligibility, FAQs, and more.
Fannie Mae Multifamily Loans: Smart Financing for Apartment Investors (U.S.)
Fannie Mae multifamily loans are a leading choice for US investors seeking to purchase, refinance, or renovate apartment buildings. With competitive rates, flexible terms, and a variety of programs, Fannie Mae helps you grow your multifamily portfolio with confidence.
Why Choose a Fannie Mae Multifamily Loan?
- Competitive Rates: Access some of the lowest rates in the market.
- Flexible Terms: Loan terms up to 30 years.
- Non-Recourse: Most loans are non-recourse, limiting personal liability.
- High Leverage: Up to 80% LTV for qualified properties.
- Diverse Programs: Options for affordable, student, senior, and green properties.
Loan Highlights
- Eligible Uses: Purchase, refinance, or renovate multifamily properties (5+ units)
- Loan Amount Range: $1 million to $100+ million
- Interest Rate: Fixed or floating, highly competitive
- Loan Term: 5 to 30 years
- Amortization: Up to 30 years
- Maximum LTV: Up to 80%
- Non-Recourse: Standard for most loans
- Prepayment: Flexible options, including yield maintenance and declining penalty
Advantages
- Low Rates: Save on interest over the life of the loan
- Non-Recourse: Protects personal assets
- Flexible Terms: Tailored to your investment strategy
- High Leverage: Finance more with less down
- Specialty Programs: Affordable, green, student, and senior housing
Disadvantages
- Strict Underwriting: Detailed documentation and property performance required
- Minimum Loan Size: Typically $1 million or more
- Property Type Restrictions: Must be multifamily (5+ units)
- Prepayment Penalties: May apply for early payoff
Eligibility & Property Types
Fannie Mae multifamily loans are available for:
- Apartment buildings (5+ units)
- Affordable housing
- Student housing
- Senior housing
- Manufactured housing communities
- Green-certified properties
Borrower requirements:
- US-based entity or individual
- Experience with multifamily properties preferred
- Strong credit and financials
- Property must meet Fannie Mae standards
Frequently Asked Questions
What is a Fannie Mae multifamily loan?
A government-sponsored loan program for purchasing, refinancing, or renovating apartment buildings (5+ units) in the US.
What are the main benefits of Fannie Mae loans?
Low rates, non-recourse, high leverage, and flexible terms.
What are the downsides?
Strict underwriting, minimum loan size, and property type restrictions.
What types of properties are eligible?
Multifamily (5+ units), affordable, student, senior, and green housing.
How much can I borrow?
$1 million to $100+ million, depending on property and borrower qualifications.
Real Stories
“Fannie Mae financing allowed us to acquire a large apartment complex with favorable terms and minimal personal risk. The process was thorough, but the end result was worth it.”
— Multifamily Investor, Florida
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Glossary
- Fannie Mae: A government-sponsored enterprise (GSE) that provides liquidity to the US mortgage market. Learn more
- Non-Recourse Loan: A loan where the lender’s only remedy in case of default is to take the property, not personal assets. Learn more
- LTV (Loan-to-Value): The ratio of loan amount to property value. Learn more
Grow your multifamily portfolio with Fannie Mae. Smart, flexible financing for apartment investors.
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Inspired by CommLoan’s Fannie Mae Multifamily Loans page and industry resources.
