Fannie Mae Agency Loans

Fannie Mae is one of two government-sponsored enterprises (GSEs) that provide liquidity to the multifamily mortgage market, alongside Freddie Mac. Through its Delegated Underwriting and Servicing (DUS) program, Fannie Mae approves a select network of lenders to underwrite, fund, and service loans on the agency’s behalf, keeping pricing competitive and execution consistent. For borrowers, Fannie Mae financing typically means long-term fixed or floating rates, non-recourse structure, flexible terms, and a wide range of product variations to fit specific property types and business plans.

Why agency lending

• Non-recourse structure. Standard Fannie Mae loans are non-recourse to the sponsor, with carve-outs only for bad-act behavior.
• Competitive long-term rates. Agency execution is typically among the most competitive options available for stabilized multifamily, especially for 7- to 10-year holds.
• Long amortization. Up to 30 years of amortization on most Fannie Mae products, including loans with shorter terms.
• Product depth. Multiple loan variations covering small loans, large loans, floating rate, near-stabilization, affordable housing, and specialty property types.
• Predictable underwriting. Standardized agency requirements mean borrowers know what’s expected up front.

Loan options within this program

Fannie Mae Fixed-Rate Loan (DUS Conventional)

The flagship Fannie Mae product, long-term fixed-rate financing for stabilized multifamily properties. Used for acquisition, refinance, and rate-and-term loans across a wide range of property sizes and markets. The default starting point when evaluating agency execution for a stabilized deal.

• Loan amounts from approximately $1M up to no stated cap
• Loan-to-value (LTV) up to 80% (varies by market tier and product underwriting)
• Debt service coverage (DSCR) 1.25x – 1.40x typical, depending on market tier
• Terms of 5, 7, 10, 12, or 15 years
• Amortization up to 30 years
• Non-recourse with standard bad-act carve-outs
• Yield maintenance or declining prepayment options

Fannie Mae Small Mortgage Loans

A streamlined version of the Fixed-Rate Loan Program designed for the small-balance end of the multifamily market. Lighter documentation, faster processing, and pricing competitive with the conventional DUS product for properties that fit the small loan box.

• Loan amounts from $1M to $9M
• LTV up to 80% (varies by market tier)
• DSCR 1.25x in top-tier markets; 1.30x – 1.40x in standard nationwide markets
• Terms of 5, 7, 10, 12, 15, 18, 20, or 30 years
• Non-recourse with standard bad-act carve-outs
• Streamlined underwriting vs. conventional DUS

Fannie Mae Structured ARM (SARM) Loan

Floating-rate alternative to the Fixed-Rate Loan Program. Useful for borrowers with shorter hold horizons, value-add business plans, or those who expect to refinance or sell within the term and don’t want to pay yield maintenance on a fixed-rate loan.

• Floating rate, typically tied to SOFR plus a spread
• Embedded interest rate cap required
• Terms of 5, 7, or 10 years
• Amortization up to 30 years
• Non-recourse with standard carve-outs
• Conversion to fixed-rate sometimes available during the term

Fannie Mae Near-Stabilization Loan

Bridge-to-permanent financing for properties that are nearly stabilized but haven’t yet hit the occupancy or DSCR threshold for conventional DUS. Provides a path to permanent agency execution at the same lender, with the conversion built into the loan structure.

• For properties typically 70–90% occupied at loan close
• LTV up to 75% (varies by program)
• Conversion to permanent at stabilization (typically 90% occupied for 90 days)
• Non-recourse during the permanent phase

Fannie Mae Green Rewards Loan

A program that provides pricing improvements and access to additional loan proceeds for properties committing to energy and water efficiency improvements during the loan term. Available as an enhancement to most Fannie Mae multifamily products.

• Pricing discount vs. standard agency execution
• Additional loan proceeds available based on projected utility savings
• Property must complete a Fannie Mae-approved high-performance assessment
• Borrower commits to specific efficiency improvements during the loan term

Fannie Mae Supplemental Financing Loan

A second loan added to an existing Fannie Mae first mortgage. Lets borrowers access additional equity without refinancing the first loan and triggering prepayment costs, useful when interest rates have moved against a refinance but the property has gained value or stabilized further.

• Available 12+ months after the initial Fannie Mae loan close
• Combined LTV cannot exceed original program limits
• Coterminous with the first loan (same maturity)
• Non-recourse with standard carve-outs

Fannie Mae Manufactured Housing Communities Loan

Specialized financing for manufactured housing community properties (sites rented to residents who own their homes). Underwriting recognizes the distinct operating characteristics of MHC properties, lower turnover, different expense structure, and unique tenant dynamics.

• Long-term fixed-rate or floating-rate options
• LTV up to 75% typically
• Site-rent communities (residents own the homes on the pads)
• Non-recourse with standard carve-outs

Fannie Mae Multifamily Affordable Housing (MAH)

Financing for properties subject to affordability restrictions through LIHTC, Section 8 HAP contracts, or other affordability covenants. Pricing benefits and structural accommodations reflect the long-term affordability commitments.

• For LIHTC, Section 8 HAP, and other affordable housing properties
• Pricing improvements over conventional agency execution
• Longer terms available (up to 30 years in some cases)
• Structural flexibility for properties with subordinate debt or layered subsidies