Since 1988, Fannie Mae and the DUS™ lenders have been providing competitive financing for market-rate multifamily, affordable multifamily, manufactured housing developments, student housing, and seniors housing. Fannie Mae lenders provide investors and borrowers loans to refinance, acquire, rehabilitate and construct. Delegated Underwriting and Servicing (DUS™) is Fannie Mae’s principal line for purchasing multifamily and senior care loans. Fannie Mae delegates the responsibility for originating, underwriting and closing to the lender. Because DUS™ lenders are well-capitalized and experienced in all aspects of multifamily and senior care finance, borrowers can count on knowledgeable, fast, reliable service and competitive pricing under all market conditions. DUS™ lenders now service more than $80 billion in outstanding loans.
CRELender offers competitive rates under the various Fannie Mae DUS™ loan programs for multifamily and senior care. Our experienced staff has the knowledge and expertise needed for a successful Fannie Mae multifamily or senior care loan transaction. Through the Fannie Mae DUS™ program, we are able to provide flexible and attractive multifamily and senior care financing nationally. We originate multifamily and senior care financing for buildings with five or more individual units in metropolitan communities. We also help increase the availability of affordable housing through financing of properties that qualify for federal housing tax credits. CRELender is one of the industry’s top providers of conventional and affordable multifamily financing. We’ve earned a reputation as a leader in the multifamily and senior care industry.
We provide our clients with responsive service and certainty of execution on Fannie Mae’s full complement of highly competitive loan programs. Recognized for our ability to structure loans to meet the unique requirements of each borrower, we combine certainty of execution, highly competitive rates and the flexibility of Fannie Mae mortgages. As a leading financer to the multifamily and senior care industry, we provide integrated origination and business services to clients. Through actively engaged principals and a golden reputation as a reliable source of funding, we provide cutting-edge service, quality and flexibility.
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Fannie Mae Multifamily Forward Funding – Multifamily Affordable Housing
Fannie Mae’s Multifamily Mortgage Business provides a forward rate lock and commitment to fund a permanent mortgage loan for multifamily properties that are eligible for 9% Low Income Housing Tax Credits and undergoing new construction or substantial rehabilitation.
| Benefits: |
- Protection from interest rate volatility on the permanent loan by locking the interest rate and other key provisions in advance of completing construction
- Certainty and speed of execution
- Eligibility:
- New construction
- Properties undergoing substantial rehabilitation, including preservation and rural transactions
- Lenders approved to deliver forward commitments under Fannie Mae’s Multifamily Affordable product line
Fannie Mae Manufactured Housing Property Lending
Fannie Mae’s Multifamily Mortgage Business provides financing options for residential real estate developments where the Borrower owns the Manufactured Housing Community (MHC) sites and associated common amenities and infrastructure.
| Benefits: |
- Customized solutions
- Flexible financing
- Competitive pricing
- Certainty and speed of execution
Eligibility:
- Existing, stabilized high quality, professionally managed MHC, with or without age restrictions, having a minimum of 50 pad sites
- At least one Key Principal of the Borrower should have experience in operating MHC
- Lenders experienced in financing HMC and approved by Fannie Mae for participation
Fannie Mae Multifamily DUS® Bond Credit Enhancement
Fannie Mae’s Multifamily Mortgage Business provides credit enhancement for tax-exempt bonds issued to finance the acquisition, new construction, refinancing, or moderate or substantial rehabilitation of multifamily properties.
| Benefits: |
- Low borrowing cost, “AA+” rating keeps the rates on bonds low
- Ability to provide affordable rental housing
- Flexible structures
Eligibility:
- Multifamily Affordable Housing (MAH) properties with Low Income Housing Tax Credit rent restrictions
- New money issues, refundings, or credit substitutions where Fannie Mae takes the place of an existing credit enhancer without the issuance of new bonds
- Fixed-rate bonds only
Fannie Mae Multifamily Affordable Housing Preservation Financing
Fannie Mae’s Multifamily Mortgage Business provides options for preserving the availability and affordability of subsidized rental housing for low-income renters. Fannie Mae can offer long-term financing or refinancing solutions for stabilized rental properties with rent and income restrictions.
| Benefits: |
- Flexible underwriting specific to affordable developments
- Competitive pricing
- Certainty and speed of execution
Eligibility:
- Expiring Low Income Housing Tax Credit deals
- Refinancing of existing tax-exempt bond deals
- Properties with Section 8 HAP Contracts
- Properties with existing RD 515 and RD 538 loans
- Loans insured under Sections 202 or 236 of the National Housing Act
Fannie Mae Multi Family & Senior Housing DUS® Supplemental Financing
Fannie Mae’s Multifamily Mortgage Business offers subordinate permanent mortgage loan financing options for multifamily properties with pre-existing senior Fannie Mae financing.
| Benefits: |
- Lower cost than refinancing
- Access to additional capital
- Flexible financing
- Certainty and speed of execution
Eligibility:
- Existing, stabilized, conventional, Multifamily Affordable Housing, Seniors Housing, Student Housing, and Manufactured Housing Communities properties
- Standard existing Fannie Mae fixed-rate or variable-rate mortgage loans
- Bond Credit Enhancement transactions are eligible with prior approval of Fannie Mae
Fannie Mae Multifamily ARM 7-6™ Loan Program
A variable-rate financing option with embedded caps and an option to convert to a fixed-rate mortgage loan.
| Benefits: |
- Low-cost financing with initial interest rates lower than fixed rates
- Maximum interest rate is set at loan origination
- Ability to convert to fixed rate financing
- Provides flexibility for various exit strategies while managing interest rate risk
Eligibility:
- Mortgage Loan for the acquisition or refinance of Multifamily properties
- Up to 80% LTV
Fannie Mae Multifamily Choice Refinance Financing
A variable-rate financing option with embedded caps and an option to convert to a fixed-rate mortgage loan.
Benefits: Minimal documentation requirements mean faster approvals and loser costs. In most cases:
- No new appraisal
- No new engineering report
- No new environmental assessment
- Plus, reduced borrower and property financial documentation requirements help make Choice Refinance loans fast and easy.
Eligibility: Existing Fannie Mae DUS loans, including 3MaxExpress and co-ops, but not including Seniors Housing or Multifamily Affordable Housing loans, are eligible for Choice Refinance, provided:
- No delinquencies of 60 days or more during the three years prior to the proposed refinance
- No non-monetary defaults uncured over 120 days
- The loan being refinanced may have been sold to Fannie Mae for cash, or it may be in an MBS.
Fannie Mae Multifamily DUS® ARM Program for Acquisition and Refinance
A variable-rate financing option with embedded caps and an option to convert to a fixed-rate mortgage loan.
Benefits:
- Low-cost financing with initial interest rates lower than fixed rates
- Maximum interest rate is set at loan origination
- Ability to convert to fixed-rate financing
Eligibility:
- Mortgage Loans for the acquisition or refinance of Multifamily properties
- Up to 80% LTV
DUS® Fixed Rate Fannie Mae Multifamily Loan Program
Fixed-rate mortgages protect borrowers from interest rate increase and provide a predictable payment and amortization schedule.
Fixed rates are available on all of Fannie Mae’s Multifamily products.
DUS® Fixed Rate Program – Fannie Mae Multifamily Affordable Housing
Fannie Mae’s Multifamily Affordable Housing’s Fixed Rate Program provides non-recourse, fixed rate financing for the acquisition or refinance of stabilized multifamily rental or cooperative properties with expiring use rent and income restrictions, affordable preservation and/or Section 8 HAP Contracts
Fannie Mae’s Multifamily Mortgage Business provides first lien permanent mortgage loan financing options for acquisition and/or refinancing for multifamily properties.
Benefits:
- Flexible financing
- Competitive pricing
- Certainty and speed of execution
- Speed in processing and underwriting
Eligibility:
- Existing, stabilized conventional, Multifamily Affordable Housing, Seniors Housing, Student Housing, and Manufactured Housing Communities properties
- Properties must have a minimum of five units (50 pad sits for MHC)
- Credit-worthy single-asset U.S. borrower with all U.S. principals
- Borrowers may also have foreign ownership interests, subject to proper structuring of the borrowing entity
DUS® Student Housing Loan Program
Fannie Mae’s Multifamily Mortgage Business provides financing options for student housing, which is defined as a conventional multifamily property where 20% or more of the units are leased to undergraduate and/or graduate students, or a property that is specifically built or leased for student housing.
Benefits:
- Customized solutions
- Flexible financing
- Competitive pricing
- Certainty and speed in execution
Eligibility:
- Existing, stabilized properties that because of design, tenancy, or location, are specifically marketed to student tenant bases
- Strong operators with a proven record of accomplishment in student housing
- Properties rented on a per-unit or per-bed basis
The Green Refinance Plus execution for Multifamily Affordable transactions provides additional proceeds to support the green retrofitting and general renovation of existing Affordable properties while retaining the ease of working with your Fannie Mae Lender.
Benefits:
- Sufficient Proceeds to Ensure On-Going Property Condition
- Competitive Pricing
- Ease and Certainty of Execution
- One-Stop Customer Service
Eligibility:
- Eligible Borrowers must have sufficient assets, liquidity, and experience to support the Mortgage Loan and perform sponsorship responsibilities, as determined by the Fannie Mae Lender
- Available for existing properties that are 10 years or older and that will meet MAH income and rent restrictions going forward, nationwide.
Mezzanine Loan Program Fannie Mae Multifamily Second Mortgage
Mezzanine financing is available for the acquisition or refinance of multifamily properties with a conventional fixed rate DUS loan of between $3 million and $25 million.
Fannie Mae Multifamily Small Mortgage Loans
Fannie Mae’s 3MaxExpress product offers flexible loan terms and streamlined processing for loans up to $3 million (up to $5 million in certain MSAs).
- Borrowers Want
- Flexible terms for small loans
- Streamlined processing and underwriting
- Low cost execution
- Competitive pricing
- 3MaxExpress Delivers
- Fixed-rate or ARM, Balloon or Fully Amortizing loans, with a wide choice of terms and prepayment options, including Yield Maintenance, Defeasance and Graduated Prepayment Premiums
- Lenders have delegated authority to underwrite 3MaxExpress loans. Streamlined third party reports and data requirements shorten the loan processing time.
- Streamlined process reduces transaction costs and may allow financing of some of these costs
- Fannie Mae Cash and MBS (securitization) executions allow lenders to offer consistent and competitive pricing, nationwide.
Fannie Mae Multifamily Structured ARM
Fannie Mae’s Structured ARM execution offers long term financing with a very competitive variable interest rate that is convertible to a fixed rate.
Benefits:
- Low-cost financing: Attractive pricing due to characteristics that are appealing to investors, such as 1 day look back for rate changes and no caps
- Convertibility from Variable-Rate to Fixed-Rate: available after the first year up until the third month prior to maturity
- Improved cash flow
Eligibility:
- A Structured ARM may be used for standard Multifamily DUS MBS or Cash Mortgage Loans including Manufactured Housing Communities. Seniors Housing, Student Housing, and Moderate Rehabilitation Mortgage Loans may be eligible on a case-by-case basis.
- Multifamily Affordable Housing Mortgage Loans, Bond Credit Enhancements, New Construction, and Substantial Rehabilitation are not eligible for Structured ARM.
Fannie Mae Multifamily Whole Loan Acquisition Program
Commercial Real Estate Lender, Inc. purchases loans, collateralized by multifamily properties, from banks and other lending institutions; loans purchased by Commercial Real Estate Lender, Inc. are either held in our own portfolio or delivered to third party investors.
Fannie Mae Multifamily Bridge Loan Program
This program is specifically designed for properties that are either stabilized or are in need of minor to moderate renovation or other value-add strategy.
For value-add situations, our bridge loan program can be used to fund moderate rehabilitation where the Borrower requires short-term debt to refinance renovations to complete a value add strategy and secure permanent financing through a FHA or Fannie Mae execution.
Fannie Mae Seniors Housing Program
Fannie Mae’s Multifamily Mortgage Business provides financing options for properties that provide Independent Living (IL), Assisted Living (AL), Alzheimer’s/Dementia Care (ALZ), or any combination thereof (e.g. IL/AL/ALZ, AL/ALZ) for senior citizens.
Benefits:
- Customized solutions
- Flexible financing
- Competitive pricing
- Certainty and speed of execution
Eligibility:
- Existing, stabilized, purpose-built Seniors Housing properties
- Sponsors and Operators with a minimum of five years’ experience in the seniors housing and industry and a minimum of five stabilized properties
- Lenders experienced in financing Seniors Housing and approved by Fannie Mae for participation
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