| n the federal government, several agencies are | | | | Provides loan programs for acquisition or refinance of |
| committed to providing lending support for multifamily | | | | student housing rental properties. |
| rental properties. Among them are FNMA, FHLMC, and | | | | • 5, 7, and 10 year fully amortizing |
| HUD. | | | | • Up to 80% LTV for acquisitions (lower for |
| Federal National Mortgage Association (FNMA): | | | | short term loans) |
| Founded in 1938 during the Great | | | | • Up to 75% LTV for refinances (lower for |
| Depression, FNMA (also known as Fannie Mae) is a | | | | short term loans) |
| stockholder-owned corporation chartered by | | | | • Minimum debt service coverage ranges from |
| Congress in 1968 as a government-sponsored | | | | 1.30 to 1.35 (higher for short term loans) |
| enterprise (GSE). Its purpose is to purchase and | | | | • Cash out refinances are available at higher |
| securitize mortgages so that funds are consistently | | | | debt service coverage |
| available to institutions that lend money to homebuyers. | | | | Senior Housing Program |
| Fannie Mae provides multifamily financing for | | | | Provides loan programs for acquisition or refinance of |
| affordable and market-rate rental housing, and | | | | senior housing rental properties. |
| operates nationally, in all multifamily markets and under | | | | • 5, 7, 10, 15, 20, 25 and 30 year fully amortizing |
| all economic conditions. Eighty-nine percent of the | | | | • Up to 75% LTV for acquisitions (lower for |
| rental housing financed by Fannie Mae lenders is | | | | short term loans) |
| affordable to families at or below the median income | | | | • Up to 70% LTV for refinances (lower for |
| of their communities. | | | | short term loans) |
| Fannie Mae provides financing through a nationwide | | | | • Minimum debt service coverage ranges from |
| network of Delegated Underwriting and Servicing | | | | 1.30 to 1.35 (higher for short term loans) |
| (DUS®) and other lenders (collectively known as, | | | | • Cash out refinances are available at higher |
| Agency Lenders). Agency Lenders also increase the | | | | debt service coverage |
| availability of affordable multifamily housing through | | | | U.S. Department of Housing and Urban Development |
| investments in properties that qualify for federal | | | | (HUD): HUD’s mission isto increase |
| housing tax credits. | | | | homeownership, support community development and |
| Working with nonprofit and for-profit sponsors, Fannie | | | | increase access to affordable housing free from |
| Mae makes funds available for affordable housing | | | | discrimination. HUD offers several programs targeting |
| through investments in individual properties or groups of | | | | multifamily and healthcare facilities. |
| properties. Fannie Mae loans may be used for the | | | | Within HUD, the Federal Housing Administration (FHA) |
| acquisition, new construction, refinancing or moderate | | | | provides mortgage insurance on loans made by |
| or substantial rehabilitation of multifamily housing, | | | | FHA-approved Agency Lenders throughout the United |
| including senior and student housing as well as | | | | States and its territories. FHA mortgages are for |
| manufactured home communities. | | | | acquisition, new construction, refinancing or substantial |
| Federal Home Loan Mortgage Corporation (FHLMC): In | | | | rehabilitation of multifamily housing, including senior and |
| 1970, Congress created | | | | student housing as well as manufactured home |
| FHLMC (also known as Freddie Mac) with three | | | | communities. |
| important goals in mind: | | | | FHA Multifamily Lending Programs |
| 1. Ensure financial institutions have mortgage money to | | | | FHA Section 207/221(d) Loans |
| lend; | | | | Provides mortgage insurance for new construction or |
| 2. Make it easier for consumers to afford a decent | | | | substantial rehabilitation of multifamily rental properties |
| house or apartment; and | | | | • 5 or more units |
| 3. Keep residential mortgage markets stabilized in | | | | • Up to 85% LTV |
| times of financial crisis. | | | | • Up to 35 years fully amortized |
| To fulfill its mission, Freddie Mac conducts business in | | | | • Construction to permanent loans available up |
| the U.S. secondary mortgage market, working with a | | | | to 90% LTV (100% for non-profits) and up to 40 years |
| national network of mortgage lending customers. | | | | FHA Section 207/223(f) Loans |
| Freddie Mac provides a full range of competitively | | | | Provides mortgage insurance for purchase or |
| priced, reliable mortgage products for the acquisition, | | | | refinance of existing multifamily rental properties |
| new construction, refinancing or moderate or | | | | • 5 or more units |
| substantial rehabilitation of multifamily housing, including | | | | • Up to 85% LTV for purchases |
| senior and student housing as well as manufactured | | | | • Up to 80% LTV for refinances |
| home communities. | | | | • Up to 35 years fully amortized |
| Freddie Mac Lending Programs | | | | FHA Section 207/234(d) Loans |
| Standard Mortgage | | | | Provides mortgage insurance for new construction or |
| Provides loan programs for acquisition or refinance of | | | | substantial rehabilitation of multifamily condominium |
| multifamily rental properties. | | | | properties |
| • 5, 7, 10, 15, 20, 25 and 30 year fully amortizing | | | | • 5 or more units |
| • Up to 80% LTV for acquisitions (lower for | | | | • Up to 85% LTV |
| short term loans) | | | | • Up to 35 years fully amortized |
| • Up to 75% LTV for refinances (lower for | | | | FHA Section 207 Loans for Manufactured Home |
| short term loans) | | | | Parks |
| • Minimum debt service coverage ranges from | | | | Provides mortgage insurance for construction or |
| 1.05 to 1.35 (higher for short term loans) | | | | substantial rehabilitation of manufactured home parks |
| • Cash out refinances available at higher DSC | | | | • 5 or more units |
| Construction Takeout | | | | • Up to 85% LTV for purchases |
| Provides loan programs for construction takeout of | | | | • Up to 80% LTV for refinances |
| multifamily rental properties. | | | | • Up to 35 years fully amortized |
| • 5, 7, 10, 15, 20, 25 and 30 year fully amortizing | | | | FHA Section 232 Loans for Long-Term Care Facilities |
| • Up to the lower of 80% LTV or 90% LTC | | | | Provides mortgage insurance for construction, |
| (lower for short term loans) | | | | acquisition, refinance, or substantial rehabilitation of |
| • Minimum debt service coverage ranges from | | | | long-term care facilities. |
| 1.10 to 1.15 (higher for short term loans) | | | | • 20 or more residents |
| Rehabilitation Mortgage | | | | • Up to 90% LTV (95% for non-profits) for |
| Provides loan programs for moderate rehabilitation of | | | | new construction or substantial rehabilitation |
| multifamily rental properties. | | | | • Up to 85% LTV (90 % for non-profits) for |
| • 5, 7, 10, 15, 20, 25 and 30 year fully amortizing | | | | purchases or refinances |
| • Up to 80% LTV (lower for the short term | | | | • Up to 35 years fully amortized |
| loans) | | | | FHA Section 232/223(f) Loans for Healthcare Facilities |
| • Minimum debt service coverage ranges from | | | | Provides mortgage insurance for acquisition, refinance, |
| 1.25 to 1.30 (higher for short term loans) | | | | or moderate rehabilitation of existing healthcare |
| Student Housing Program | | | | facilities. |