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Download Term Sheet
FANNIE MAE® DUS
Conventional Properties
See our first-lien permanent mortgage loan financing options for the acquisition or refinance of conventional multifamily properties.
BENEFITS
- Flexible loan terms.
- Competitive pricing.
- Certainty of execution.
- Speed in processing and underwriting.
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ELIGIBILITY
- Existing, stabilized conventional properties.
- Properties with a minimum of five units.
- Credit-worthy single-asset U.S. borrower with U.S. ownership.
- Borrowers may have indirect foreign ownership interests, subject to proper structuring of the borrowing entity and its parent.
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TERM
5 – 30 years.
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AMORTIZATION
Up to 30 years.
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INTEREST RATE
Fixed- and variable-rate options available.
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MAXIMUM LTV
80%.
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MINIMUM DSCR
1.25x.
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PROPERTY CONSIDERATIONS
Properties must have stabilized occupancy (typically 90%) for 90 days prior to funding. Loan commitments for pre-stabilized properties will be considered on a case-by-case basis.
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SUPPLEMENTAL FINANCING
Supplemental Loans are available.
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PREPAYMENT AVAILABILITY
Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and declining prepayment premium for variable-rate loans.
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RATE LOCK
30- to 180-day commitments. Borrowers may lock the rate with Streamlined Rate Lock option.
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ACCRUAL
30/360 and Actual/360.
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RECOURSE
Non-recourse execution is available for most loans greater than $750,000. Standard carve-outs required for “bad acts” such as fraud and bankruptcy.
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ESCROWS
Replacement reserve, tax, and insurance escrows are typically required.
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THIRD-PARTY REPORTS
Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.
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ASSUMPTION
Loans are typically assumable, subject to review and approval of the proposed new borrower’s financial capacity and experience.
In its prequalifying review, Lument will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.