Fannie Mae Multifamily Commercial Financing
BancorpOne arranges Fannie Mae multifamily mortgages for stabilized apartment communities, student housing, and manufactured housing properties nationwide. Originating through Delegated Underwriting and Servicing (DUS) lenders, we deliver competitive fixed and floating-rate non-recourse financing with up to 30-year amortizations.
Indicative Underwriting Matrix
All Fannie Mae loan terms, pricing tiers, and advance rates are subject to DUS lender delegated underwriting, property condition assessment, and green rewards qualification.
The Industry Standard in Multifamily Financing
Fannie Mae Delegated Underwriting and Servicing (DUS) financing represents the premier source of liquidity for 5+ unit multifamily real estate in the United States. Under the DUS model, designated lenders share credit risk directly with Fannie Mae, giving them delegated authority to underwrite, price, and commit loans without cumbersome committee delays.
BancorpOne functions as an independent commercial mortgage broker, positioning borrower loan files across top DUS lenders to secure favorable pricing spreads, interest-only concessions, and flexible prepayment structures for apartment sponsors.
Program Features & Specialized Execution Tiers
Fannie Mae multifamily debt accommodates diverse property profiles through dedicated programs:
- Standard DUS Multifamily: Conventional senior debt for properties with 5 or more residential units, requiring 90% physical occupancy sustained over 90 days.
- Fannie Mae Small Loans: Streamlined underwriting, reduced third-party costs, and competitive pricing for transactions between $1,000,000 and $6,000,000.
- Green Rewards Financing: Lower interest rate pricing and increased loan proceeds for properties committing to at least 15% reduction in annual energy or water consumption.
- Multifamily Affordable Housing (MAH): Dedicated debt tranches for properties with Section 8 contracts, Low-Income Housing Tax Credits (LIHTC), or local affordability covenants.
Supplemental Loan Capability: Unlocking Trailing Equity
A defining advantage of Fannie Mae financing is the pre-structured ability to place a supplemental second mortgage. Once a borrower has held a Fannie Mae first mortgage for at least 12 months and property Net Operating Income has increased through renovations or rent growth, the sponsor can secure a supplemental loan without refinancing the low-interest senior note.
Fannie Mae Underwriting Submission Package
To structure an indicative agency quote and issue loan sizing, sponsors must provide:
- Certified unit-by-unit rent roll showing current market rents, concessions, and deposit status
- Trailing 12-month (T12) operating statement broken out by month with prior 2 years property financials
- Detailed capital expenditure history detailing recent unit interior renovations and mechanical upgrades
- Borrower/sponsor financial statement and Schedule of Real Estate Owned demonstrating multifamily management experience
Frequently Answered Financing Questions
Verified answers to common borrower and broker inquiries regarding loan sizing, guidelines, and execution.
What occupancy is required for a Fannie Mae multifamily loan?
Fannie Mae requires properties to demonstrate at least 90% physical and economic occupancy sustained over the preceding 90 consecutive days prior to loan commitment.
For properties undergoing lease-up or post-renovation stabilization that have not yet hit 90 days of 90% occupancy, BancorpOne arranges bridge financing until the asset qualifies for agency takeout.
Review Stabilization Requirements →Can I get cash out of a Fannie Mae multifamily loan without refinancing?
Yes. Fannie Mae allows borrowers to secure a supplemental second mortgage after 12 months of seasoned performance if property NOI has grown, preserving the low fixed rate on the senior mortgage.
The supplemental loan is co-terminus with the original senior note, providing liquidity for renovations or acquisitions without incurring prepayment fees on the first lien.
Calculate Supplemental Proceeds →Does BancorpOne work directly with Fannie Mae DUS lenders?
Yes. BancorpOne operates an active multifamily debt desk, originating and packaging loans directly into approved Fannie Mae DUS lender networks nationwide.
We model property underwriting against agency tier matrices, negotiate interest-only periods, and manage lender competition to secure optimal spread pricing.
Size Multifamily Property →