Opening of Ace Hardwood Store. Loan provided by Commercial Loan Direct.
Written by Leane Eicoff| September 28, 2018
A The Federal National Mortgage Association (FNMA or "Fannie Mae") mortgage is an adjustable or fixed-rate loan product available for various types of multifamily properties. The underwriting and application process is standardized and performed by Delegated Underwriting and Services (DUS) lenders. Through it"s two major programs (Small Loan Program and DUS Program), Fannie offers multifamily mortgages starting at $750,000. Like CMBS mortgages, these loans are pooled, securitized, and sold to investors, but typically serviced by the originator.
Market-Rate (Conventional) Apartments
Affordable Housing
Senior Housing
Student Housing
Manufactured Housing
Cooperative Housing (in Boston, Chicago, Los Angeles, New York, Washington D.C.)
Fannie Mae loans are priced based on the corresponding treasury and a spread, which takes into account the loan amount, term, LTV, and property location. Pricing considerations the borrower should be aware of are the following:
Mortgages that conform to the Fannie Mae underwriting standards are funded by the originating lender, then pooled together, securitized (i.e. converted into mortgage-backed security bonds), and sold to investors. A multifamily mortgage-backed security (MBS) may be backed by fixed-rate mortgage loans or adjustable-rate mortgage loans, but not both within the same offering. When the multifamily MBS is issued, Fannie Mae guarantees timely payment of principal and interest to the MBS certificate holders. Fannie also issues Discount Mortgage-Backed Securities (DMBS), which are non-interest bearing securities having terms of one year or less and purchased at a discount. Multifamily MBS may be placed into Megas, REMICs, or other mortgage-related securities.
Typically serviced by the DUS originator/underwriter, but may be transferred to third parties.
ARM 7-6
Credit Facility
Structured ARM
Bulk Delivery
Choice Refinance
DUS Mortgage
Small Loan
Negotiated Pools
Supplemental Loans
Affordable Housing Preservation
Funded Forward Rate Lock (9% LIHTC)
Unfunded Forward Rate Lock (9% LIHTC)
Green Preservation Plus
Reduced Occupancy Affordable Rehab (ROAR)
MBS as Tax-Exempt Bond Collateral (Fixed Rate)
MBS as Tax-Exempt Bond Collateral (Variable Rate)
Rural Development Rental Housing
FHA Risk Sharing Execution
Tax-Exempt Bond Credit Enhancement
What Clients Say About Us
Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever
- Nirav Patel
If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.
- Vincent Arias
We were in unfamiliar territory when it came to refinancing. Commercial Loan Direct streamlined the whole process for us. Leann connected us with lenders that were the right fit for us. The money and time we saved was so worth it. I highly recommend them
- Rita Pisarski
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