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Download Term Sheet
FANNIE MAE® DUS
Healthy Housing Rewards Healthy Design
We offer financial incentives to Multifamily borrowers who invest in the health and well-being of the people who live in affordable housing properties.
BENEFITS
- Lower interest rate.
- Reimbursement for Healthy Design Certification.
- Flexible underwriting to specific affordable developments.
- Flexible loan terms, and fixed- or variable-rate financing options.
- Certainty and speed of execution.
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ELIGIBILITY
- Affordable Housing properties with at least 60% of the units affordable at 60% of Area Median Income or less.
- Must obtain Healthy Design certification from an approved Fannie Mae provider.
- One-time benefit per borrower per property. Cannot be combined with Healthy Housing Rewards Enhanced Resident ServicesTM.
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PRICING
Up to 15 basis points interest rate discount.
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TERM
5 – 30 years.
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AMORTIZATION
Up to 35 years.
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HEALTHY DESIGN CERTIFICATION
Certification fee cost (up to $6,500) reimbursed by Fannie Mae.
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INTEREST RATE
Fixed- and variable-rate options available.
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MAXIMUM LTV
Varies by product type.
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MINIMUM DSCR
Varies by product type.
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PREPAYMENT AVAILABILITY
Flexible prepayment options available including yield maintenance and declining prepayment premium.
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LOAN AMOUNT
No minimum or maximum.
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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.
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ACCRUAL
30/360 and Actual/360.
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RECOURSE
Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.
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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 features and eligibility is required.
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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.