Fannie Mae offers a full range of mortgage products with competitive rates and
flexible terms, designed to provide financing for every multifamily property type. In addition to these various loan products,
Fannie Mae also offers custom loan options like the Fixed + 1, Interest Only, and Early Rate Lock. These features can be combined
with Fannie Mae's other mortgage products to custom-fit your loan to meet your financing needs.
Fixed + 1 Fannie Mae's Fixed + 1 offers borrowers the flexibility
of an adjustable rate mortgage for the last year of the loan term. During the adjustable rate period, the borrower can repay
the loan without penalty. This option means the borrower can take up to a year to decide when to repay/refinance their loan
and not have to worry about yield maintenance or prepayment penalties.
Eligibility: Fixed rate loans
for conventional multifamily properties. DUSTM/MBS and affordable housing properties are not
eligible.
Loan term/amortization: 5+1, 7+1, 9+1, 10+1 and 15+1 year terms. 25 or 30-year amortization
or Interest Only.
Prepayment: Loan is prepayable during the fixed rate period but subject to yield
maintenance. The loan is prepayable during the extension period with no prepayment premium.
Interest Only
Fannie Mae offers a full range of payment
options designed to suit the needs of each borrower for each transaction. Among the most advantageous for borrowers looking
to minimize payments and maximize cash flow is the Interest Only option which allows borrowers to pay nothing but the interest
on their loan each month, freeing up cash for other investments.
Eligibility: Interest Only is available
for any of Fannie Mae's mortgage products. Loans for affordable housing properties require Fannie Mae approval. Loan
term: 5 to 10 year terms
Interest Only term: 1 to 10 year terms
Loan sizing:
Higher leverage and longer Interest Only terms may affect loan amount.
Early Rate Lock
Fannie Mae's Early Rate Lock offers borrowers
the ability to lock in an interest rate during the earliest stages of underwriting, as early as 7 days after receipt of the
due diligence information and as long as 12 months before the loan actually closes. There's flexibility to increase the loan
amount after final underwriting, there's no review by Fannie Mae prior to rate lock, and the pricing is competitive with all
other Fannie Mae executions.
Eligibility: Early Rate Lock may be used with all fixed rate Fannie
Mae products for conventional multifamily properties. Large Loans ($25 million or more), seniors housing, student housing,
MHC, and affordable housing loans require Fannie Mae approval.
Loan term/amortization: All loan terms
are eligible. Up to 30 year amortization or Interest Only.
Commitment period: Up to 12 months (standard).
Up to 18 months (choice refinance). Commitment fee: 2-3% (refundable at closing)
