Fannie Mae (FNMA)
Loan Programs
|
Fixed Rate Loan Programs
|
| Loan Amount - |
 |
$1,000,000 minimum |
| Amortization - |
|
15 to 30 years |
| Term - |
|
5,7,10,15,18,25 or 30 years |
| Interest Rate - |
|
Based on the 10 year U.S. Treasury yield plus a margin
("spread") determined by a combination of the
ratio of the loan payment over the underwritten net operating
income (called "Debt Service Coverage Ratio"
DSCR) and loan to value (LTV). |
| Origination Fee - |
|
1% or less, subject to loan amount and spread. FNMA
DUS (Delagated Underwiter and Servicer) fee included in
spread. |
| DSCR/LTV - |
|
Minimum DSCR is 1.20 or lower. Maximum LTV is 80%. |
| Subordinate Financing - |
|
Yes. $250,000 minimum after one year from loan funding,
subject to property qualification. |
| Assumability - |
|
Yes, subject to qualification and a 1% assumption fee. |
| Prepayment - |
|
Yes, subject to yield maintenance or defeasance. |
| Occupancy - |
|
Usually 90% during last 90 days. Occupancy of over
85% on a case by case basis. |
| Borrower - |
|
Usually a single asset entity. A waiver on this may
be requested. |
| Recourse - |
|
Recourse and non recourse options available. Loan structures
are usually non recourse. |
| |
Adjustable Rate Loan Programs
|
FNMA adjustable rate loans are the same
as fixed rate loan requirements as noted above with the
following differences:
|
| Term - |
|
5,7 or 10 years |
| Interest Rate - |
|
Based on the 1 or 3 month LIBOR index ( your choice
) with rate reset changes based every 30 or 90 days. |
| Prepayment - |
|
Waived after the first 12 months when converted to a
FNMA fixed rate loan. Prepayment not allowed during first
12 months. After the first 12 months if the loan is not
converted to a FNMA fixed rate loan a prepayment fee of
1% or declining fee may be selected. |
| Rate Ceiling - |
|
1% per rate period ( 1 or 3 months ) with a lifetime
ceiling of 3 to 4.5% over the initial fully indexed rate. |
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