Multifamily Real Estate
Powerful financing options to elevate your real estate investments and maximum your growth.
SFR / Short-Term Rental
Dominate the rental market with SFR and short-term rental solutions that put you in the driver’s seat. Maximize your returns and crush the competition with flexible, high-impact financing.
5+ Units
Scale up and own the multi-unit game. Financing options for 5+ units are built for the big players ready to make moves and seize massive opportunities.
Affordable Multifamily
Unlock the potential of affordable multifamily properties with financing that’s as aggressive as your growth strategy. Get the edge you need to build wealth and expand your portfolio.
Lot/Land - Commercial
Snag that prime commercial land with financing designed for serious investors. Whether you’re breaking ground or holding for the long haul, our solutions give you the leverage to conquer.
Fannie Mae
Fannie Mae Multifamily loans are a powerhouse for commercial real estate investors looking to lock in lower-cost financing. As one of the largest capital sources in the U.S. market, Fannie Mae offers a solid platform for purchasing and refinancing multifamily properties, including everything from senior housing to student housing, apartments, and more. If you’re serious about investing, this is a tool you can’t afford to ignore—but you better know how to use it.
Why Fannie Mae Loans?
Fannie Mae Multifamily financing isn’t just another loan—it’s a strategic advantage. Here’s what makes these loans a killer option:
- Student and Military Tenants: You can have up to 80% of tenants as students or military, but if you go beyond that, you’ll need to tap into Fannie Mae’s specialized programs.
- Flexible Terms: With amortization options ranging from 5 to 30 years, you can tailor your loan to fit your strategy.
- High LTV: Get up to 80% LTV, giving you the leverage to finance more without stretching your wallet too thin.
- Property Type Flexibility: From senior developments to mobile home parks, these loans cover a wide range of property types, making your investment choices as flexible as your financing.
The Catch with Fannie Mae Loans
No loan is without its downsides, and Fannie Mae’s Multifamily programs are no exception. Here’s what you need to watch out for:
- Strict Occupancy Requirements: You’ve got to keep your property’s tenant mix in line with the loan’s terms, including limitations on student housing and commercial space.
- Borrower Requirements: Fannie Mae loans aren’t for amateurs. You need to prove your experience, have a net worth equal to the loan amount, maintain liquidity of 9 to 12 months’ worth of debt service, and have a solid credit score (680+). Oh, and don’t even think about recent negative credit events.
- Documentation: The paperwork is a beast. Due diligence reports, pre-closing documentation—there’s no shortcut here. It takes time, and if you’re not prepared, this process can drag out longer than you’d like.
Eligible Properties
Multifamily, student housing, affordable housing, assisted living, mobile home parks, healthcare facilities
Loan Amount Range
Minimum $1M; Fannie Mae DUS program starts at $3M
Interest Rate
Fixed rates vary; Floating rates from 2.30% over LIBOR—check current LIBOR rates
Loan Term
5 to 30-year fixed-rate terms available
Amortization
Up to 30 years
Maximum LTV
80%
Minimum DSCR
1.25x
Minimum Debt Yield
7-8%
Recourse
Non-recourse with standard “bad boy” carve-outs
Prepayment
Yield maintenance, no prepayment premium in the final 90 days
Freddie Mac
Looking for alternatives? Freddie Mac offers a range of multifamily loan products that might be just what you need for your next acquisition or recapitalization. With flexible terms and specialized programs for senior, student, and affordable housing, Freddie Mac is often the go-to option when Fannie Mae isn’t a fit.
Why Freddie Mac Loans?
Freddie Mac loans bring a different set of perks to the table:
- Flexible Terms: Terms that range from 5 to 30 years, giving you more control over your financing.
- Non-Recourse: Non-recourse applies to all principals in the deal, offering you peace of mind.
- Specialized Financing: Tailored programs for senior, student, and affordable housing projects make Freddie Mac a versatile player in the multifamily game.
The Downside?
Freddie Mac isn’t without its limitations.
- Property Size: Freddie Mac doesn’t do small—these loans are for larger properties, so if you’re eyeing a 1-4 unit building, you’re out of luck.
- Limited Mixed-Use Options: There aren’t many loan programs that cover mixed-use properties.
- Prepayment Penalties: Get ready to pay if you decide to settle the loan early.
- Rates: The rates and LTVs are pretty standard, so don’t expect anything too flashy here.
Amount Borrowed
Starts at $1M
Loan Term
5 – 30 years for fixed-rate loans
Leverage
Up to 80% LTV
Recourse
Non-recourse with basic carve-outs
Prepayment
Penalties apply if repaid too early
Rate Locks
Early and extended rate lock options available
Borrower Requirements
Must have a net worth equal to the loan amount and liquidity of at least 10% of the loan (excluding retirement accounts)
Loan Amount
$2.2M
Details
- Multifamily Acquisition
- 6.19% Interest Rate
- 1031 Exchange
- 10 Year Term
- 30 Year Amortization
- Recource
