Fannie Mae Near-Stabilization Loan

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Permanent mortgage loan financing for newly constructed or recently renovated conventional and affordable multifamily apartment communities expected to achieve stabilized occupancy within 120 days.


  • Conventional and Multifamily Affordable Housing Properties
  • Partially leased, newly constructed or recently renovated communities
  • Strong borrowers with demonstrated lease-up track record
  • Properties in Strong and Nationwide markets

Loan Size
$10 million or greater

5, 7, 10, and 12 year term options

5-30 year amortization

Interest Rate
Fixed- and variable-rate interest rate options

Loan to Value and DSCR

  • Maximum LTV shall be Tier compliant. For a Tier II level, 75% of “as-stabilized” LTV.
  • Minimum DSCR shall be Tier compliant. For a Tier II level, Underwritten DSCR of 1.25x (1.15x for MAH).

Interest Only
Monthly payments of interest only for the first 12 months of the loan term, based on the actual interest rate. An additional period of interest-only payments may be available.

Property Considerations
Minimum physical occupancy of 75% at rate lock. MBS Additional Disclosure is required. Full disbursement of loan proceeds at closing.

Prepayment Availability
Flexible prepayment options available, including yield maintenance and declining prepayment premium.