Fannie Mae Affordable Small Mortgage Loan

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Terms

Description
Streamlined underwriting for long-term fixed rate financing for the acquisition or refinance of stabilized multifamily rental properties with rent and income restrictions, and/or Section 8 HAP Contracts.

Loan Amount
$1,000,000 - $5,000,000 in Baltimore, Boston, Chicago, Los Angeles, New York, Philadelphia, Portland, Sacramento, San Diego, San Francisco, San Jose, Seattle and Washington DC. $1,000,000 - $3,000,000 in all other markets.

Affordability
An MAH Property must have rent and income restrictions that meet or exceed

Requirements
One of the following requirements.

  • At least 20% of all units have rent or income restrictions to households earning no more than 50% of Area Median Income (“AMI”)
  • At least 40% of all units have rent or income restrictions in place to households earning no more than 60% of AMI
  • At least 20% of all units are subject to a project-based Section 8 HAP contract

Loan Term
7 to 30 years

Amortization
30 years

Prepayment Penalty
Yield maintenance formula with a 1% minimum (Declining Percentage Fee schedule is available upon request)

Recourse
Non-recourse; subject to Lender’s discretion

Debt Service Coverage
1.20x minimum DSCR