Fannie Mae Hybrid ARM Loan

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Terms

Description
Fannie Mae’s Hybrid ARM offers small loan borrowers flexible, long-term financing with attractive prepayment options, and competitive pricing.

Asset Classes
Conventional Small Mortgage Loans and Manufactured Housing Communities

Loan Amount
Up to $6 million in all markets

Loan Term
7- or 10-year fixed-rate term followed by 23- or 20-year adjustable-rate term

Prepayment
Yield maintenance and graduated prepayment options available.
Completely open prepayment during the adjustable rate period.

Amortization
Up to 30 years

Debt Service Coverage
1.25x minimum DSCR

Loan to Value
Up to 75% maximum LTV for refinances and 80% for acquisitions

Index during adjustable rate term
6-month LIBOR

Margin during adjustable-rate term
0.80%, plus the Guaranty Fee Rate and the Servicing Fee Rate in effect at Rate Lock.

Maximum interest rate during adjustable-rate term
Starting with the conversion from the fixed interest rate to the adjustable interest rate and thereafter, maximum semi-annual interest rate adjustment of 1% up or down. Maximum lifetime interest rate to Borrower capped at 5% over the initial fixed rate.