As an intermediary, Medallion Funds offers variety of options for your multifamily property financing.
Our lender partners offer in-house credit and underwriting authority under their “DUS” platform. This translates into faster transactions, efficient processing, and less expensive approach. Working with our lenders, utilizing the “DUS” platform has many benefits, but one stands out the most which is delegated underwriters can underwrite our client’s files without requiring tax returns. Fannie Mae “DUS” program offers smaller loans of up to $6 Million.
“DUS” Program Highlights
For applicants looking for smaller multifamily loans, the Fannie Mae Multifamily Small Loan Program could be the perfect fit. This program offers many benefits including and not limited to:
- Loan Size: Up to $6 million
- Unit Requirements: 5 unit minimum
- LTV: 80% maximum LTV
- Interest Rate: Early and extended locks are available
- Rates: Fixed and variable rate options are available
- Term: 5-30 years
- DSCR: Minimum 1.25. Fannie Mae at their discretion, and on newly constructed or renovated loans may define DSCR as deemed achievable within 4 months after rate lock.
- Recourse: Non-recourse with a standard carve-out
- Assumable: Yes. Lender must approve
- Tenant Occupancy: “DUS” Loans allow up to 35% of property’s space to be occupied by commercial tenants capped at 20% of rental income. Also, it allows the space to be occupied by students and military personnel with a concentration of up to 80%.
- Considerations: Fannie Mae provides mortgage loan financing for newly constructed and recently renovated conventional multifamily apartment communities expected to achieve stabilized occupancy within 120 days. Borrowers must demonstrate lease-up track record, otherwise Properties must have stabilized occupancy (typically 90%) for 90 days prior to funding. Loan commitments for pre-stabilized properties will be considered on a case-by-case basis.
- Pre-payment: Flexible prepayment options available including yield maintenance and declining prepayment premium.
Fannie Mae offers multifamily and apartment financing options in addition to the “DUS” loans. Medallion Funds has the expertise to navigate you through these options which includes multifamily loans, affordable housing, moderate rehabilitation, Senior housing, Student housing, military housing, cooperative apartments, fixed rate loans, green financing, ARM 7-6.
- Fannie Mae General Loan Terms
- Size: $1 million to $100 million
- Terms: 5, 7, 10, and 12 year terms
- Amortization: 30 years
- Maximum LTV: 75% – 80%
- Minimum DSCR: 1.25x
- Recourse: Non-recourse with standard “bad boy” carve-outs
Execution which our clients can trust
As an intermediary, our skilled specialists originate loans and place them with one of our DUS lenders. Our full understanding and knowledge of Fannie Mae processing combined with lender’s in-house underwriting authority enable our team to execute a loan with confidence of certainty of execution.