The lending paradigm has changed. You won’t necessarily see it in the reams of paper being poured out by lenders everywhere. You won’t even see it in the product/program pages we publish.

Enter the era of financial engineering. Wonderfully scientific. But something of a misnomer. There’s no slide rule or nano-computer. There are, as always, hard working creative thinkers who fashion appropriate, cost effective loans to meet the most critical financial and timing needs of their borrowers.

No more cookie cutter loans. No more buy it “off the rack.” No more “as it is, no substitutions.” No mass merchandising.

It’s not quite science. It’s much more akin to custom tailoring or haute cuisine.

What used to be rules now serve merely as guidelines. As one contemporary lender wryly commented, “In my next life, I want to come back as a borrower.”

There’s never been a better time to satisfy your individual wants and needs. And no better team to provide you with thoughtful, cost effective solutions.

Fannie Mae offers a full range of mortgage products with competitive rates and flexible terms, designed to provide financing for every multifamily property type. In addition to these various loan products, Fannie Mae also offers custom loan options like the Fixed + 1, Interest Only, Early Rate Lock, and the Structured 15 Year Cap to deliver even more savings. These features can be combined with Fannie Mae’s other mortgage products to custom-fit your loan to meet your financing needs.

Fixed + 1
Fannie Mae’s Fixed + 1 offers borrowers the flexibility of an adjustable rate mortgage for the last year of the loan term. During the adjustable rate period, the borrower can repay the loan without penalty. This option means the borrower can take up to a year to decide when to repay/refinance their loan and not have to worry about yield maintenance or prepayment penalties.

Eligibility: Fixed rate loans for conventional multifamily properties. DUS™/MBS and affordable housing properties are not eligible.

Loan term/amortization: 5+1, 6+1, 7+1, 8+1, 9+1, 10+1 and 15+1 year terms. 25 or 30 year amortization or Interest Only.

Prepayment: Loan is prepayable during the fixed rate period but subject to yield maintenance. The loan is prepayable during the extension period with no prepayment premium.

Interest Only

Fannie Mae offers a full range of payment options designed to suit the needs of each borrower for each transaction. Among the most advantageous for borrowers looking to minimize payments and maximize cash flow is the Interest Only option which allows borrowers to pay nothing but the interest on their loan each month, freeing up cash for other investments.

Eligibility: Interest Only is available for any of Fannie Mae’s mortgage products. Loans for affordable housing properties require Fannie Mae approval.
oan term: 5 to 10 year terms

Interest Only term: 1 to 10 year terms, some restrictions apply to lower leveraged loans and Small Mortgage Loans

Loan sizing: Higher leverage and longer Interest Only terms may affect loan amount.

Early Rate Lock

Fannie Mae’s Early Rate Lock offers borrowers the ability to lock in an interest rate during the earliest stages of underwriting, as early as 7 days after receipt of the due diligence information and as long as 12 months before the loan actually closes. There’s flexibility to increase the loan amount after final underwriting, there’s no review by Fannie Mae prior to rate lock, and the pricing is competitive with all other Fannie Mae executions.

Eligibility: Eligibility: Early Rate Lock may be used with all fixed rate Fannie Mae products for conventional multifamily properties. Large Loans ($25 million or more), seniors housing, student housing, MHC, and affordable housing loans require Fannie Mae approval.

Loan term/amortization: All loan terms are eligible. Up to 30 year amortization or Interest Only.

Commitment period: Up to 12 months (standard). Up to 18 months (choice refinance).

Commitment fee: 2-3% (refundable at closing)