Fannie Mae Structured Adjustable-Rate Mortgage Loan

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Fannie Mae’s Multifamily Mortgage Business offers long term financing with a very competitive variable interest rate that is convertible to a fixed rate.


  • Attractive low-cost financing
  • Convertible to fixed-rate financing
  • Flexible prepayment options
  • Ability to choose interest rate cap


  • Existing, stabilized multifamily properties, including: Conventional, Multifamily Affordable Housing. Seniors Housing, Student Housing, and Manufactured Housing Communities. Moderate Rehabilitation Loans may be eligible on a case-by-case basis
  • Credit Enhancements and Substantial Rehabilitation are not eligible
  • Loans of $25 million or more
  • Loans for acquisition or refinance

5, 7, or 10 years

Up to 30 years

Maximum LTV

Minimum DSCR
1.00x, using a DSCR calculated based on a variable underwriting rate. Mortgage loan amount shall not exceed that of a fixed-rate loan of similar terms.

Interest Rate
Interest rate adjusts based on changes to the underlying Index and is equal to the Index plus the Margin. No limit on rate changes.

Variable Underwriting Rate
Sum of (i) the Index, plus (ii) the investor spread, guaranty fee and servicing fee (the “Margin”), plus (iii) the interest rate cap escrow expressed as a percentage (if the cap term is shorter than the loan term), plus (iv) 3%, plus (v) the amortizing constant for that built-up rate.