This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Download Term Sheet
FANNIE MAE® DUS
Healthy Housing Rewards Enhanced Resident Services
Healthy Housing Rewards Enhanced Resident Services, a product feature that provides lower pricing to finance affordable properties with enhanced resident services that improve the health and stability of their residents.
BENEFITS
- Lower interest rate.
- Initial Sponsor certification paid by Fannie Mae.
- Reimbursement for Property Enhanced Resident Services certification.
- Flexible underwriting to specific affordable developments.
- Flexible loan terms, and fixed- or variable-rate financing options.
- Certainty and speed of execution.
-
ELIGIBILITY
- Affordable Housing properties with at least 60% of the units affordable at 60% of Area Median Income or less.
- Sponsors must obtain certification from an approved Fannie Mae provider.
- Borrowers must obtain property-level certification from an approved Fannie Mae provider.
- One-time benefit per borrower per property. Cannot be combined with Healthy Housing Rewards Healthy Design benefits.
-
PRICING
Up to 30 basis points discount.
-
TERM
5 – 30 years.
-
AMORTIZATION
Up to 35 years.
-
SPONSOR CERTIFICATION
Cost of initial Sponsor certification 100% paid by Fannie Mae. Sponsor must obtain recertification every 5 years.
-
PROPERTY LEVEL CERTIFICATION
Initial cost of property-level certification will be 100% reimbursed by Fannie Mae. Borrower must obtain yearly property re-certification.
-
INTEREST RATE
Fixed- and variable-rate options available.
-
MAXIMUM LTV
Varies by product type.
-
MINIMUM DSCR
Varies by product type.
-
PREPAYMENT AVAILABILITY
Flexible prepayment options available including yield maintenance and declining prepayment premium.
-
LOAN AMOUNT
No minimum or maximum.
-
RATE LOCK
30- to 180-day commitments. Borrowers may lock the interest rate using Streamlined Rate Lock option. Confirmation of Healthy Design certification is required prior to rate lock.
-
ACCRUAL
30/360 and Actual/360.
-
RECOURSE
Non-recourse execution is available, with required standard carve-outs for “bad acts” such as fraud and bankruptcy, as well as failure to maintain Sponsor/property level certifications or Sponsor control requirements.
-
THIRD-PARTY REPORTS
Standard third-party reports, including Appraisal, Phase I Environmental Assessment, and a Property Condition Assessment, are required. Confirmation of Healthy Housing Rewards eligibility is required.
-
ASSUMPTION
Loans are typically assumable, subject to review and approval of the 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.