Fannie Mae provides tax-exempt bond credit enhancement for the construction and rehabilitation of multifamily properties. Although Fannie Mae products are priced higher than HUD, the application process is smoother, there are no Davis-Bacon requirements, and you can expect a realistic closing within 90 days. Fannie Mae credit enhancement applies to fixed-rate bonds only.

Typical terms for new construction deals in today’s lending environment:

DCR: 1.15
Loan to Value: Up to 90%
Interest Rate: 6.00-6.25% (Fixed / Forward Commitment)
Amortization: 30 years
Term: 18 years
Non-Recourse: Yes
Davis Bacon Requirement: No
Closing Time Frame: 90 days after bond inducement

Typical terms for renovation deals in today’s lending environment:

DCR: 1.15
Loan to Value: Up to 90%
Interest Rate: 4.50-6.00% (Fixed)
Amortization: 30 years
Term: 7-18 years
Non-Recourse: Yes
Davis Bacon Requirement: No
Closing Time Frame: 90 days after bond inducement

According to Housingwire, Fannie Mae and its lenders financed $33.8 billion in multifamily loans last year. The 10 largest Fannie Mae lenders by volume are found below:

1) Walker & Dunlap, LLC
2) Wells Fargo Multifamily Capital
3) Beech Street Capital, LLC
4) CBRE Multifamily Capital, Inc.
5) Berkeley Point Capital, LLC
6) Berkadia Commercial Mortgage, LLC
7) M&T Realty Capital Corporation
8) Arbor Commercial Funding, LLC
9) PNC Real Estate
10) Greystone Servicing Corporation, Inc.

Feel free to contact me (Jeff Carroll) at 704-905-2276 with any questions you may have regarding your bond-financed property.