Fannie Mae Mortgages

*A = Apartment AH = Affordable Housing C = Cooperative Housing MH = Manufactured Housing SH, = Senior Housing ST = Student Housing

Fixed-Rate Mortgage:

The Fixed-Rate loan is designed for the acquisition or refinancing of existing, stabilized properties. Key features include:

• Maximum Loan-to-Value (LTV): Up to 80% for purchases and up to 75% for refinances
• Debt Service Coverage Ratio (DSCR): Minimum requirement of 1.25x
• Loan Terms: Flexible terms ranging from 5 to 15 years

This product offers stability and predictability, making it an excellent choice for long-term property investment strategies.

Adjustable Rate Mortgage 7-6:

The ARM 7-6 loan is tailored for the purchase or refinance of existing, stabilized properties. Key features include:

• Maximum Loan-to-Value (LTV): Up to 80% for purchases and up to 75% for refinances
• Debt Service Coverage Ratio (DSCR): Minimum of 1.00x at the loan cap rate
• Loan Term: 7 years
• Prepayment Terms: 1-year lock-out period followed by a 1% prepayment premium

This product provides flexibility with adjustable rates, making it a strong option for borrowers seeking short- to mid-term financing solutions.

Affordable Housing Preservation:

This loan product is designed to help preserve the availability and affordability of subsidized rental housing for low-income tenants. It is ideal for:

• Properties with expiring Low Income Housing Tax Credit (LIHTC) agreements
• Refinancing tax-exempt bond-financed properties
• Properties with Section 8 Housing Assistance Payment (HAP) contracts
• Properties with existing USDA RD 515 and RD 538 loans
• Mortgages insured under Sections 202 or 236 of the National Housing Act

Key Features:

• Maximum Loan-to-Value (LTV): Up to 80%
• Minimum Debt Service Coverage Ratio (DSCR): 1.20x
• Loan Terms: 10 to 30 years

This product offers flexible financing solutions to ensure long-term affordability and stability for subsidized housing communities.

Green Preservation Plus:

The Green Preservation loan offers extra financing to support energy and water efficiency upgrades for existing Multifamily Affordable Housing (MAH) properties that are at least 10 years old and comply with MAH income and rent restrictions throughout the loan term.
Eligibility Requirements:

• Property must be a minimum of 10 years old
• Must meet MAH income and rent restrictions for the duration of the loan
• Borrower must be a single-asset U.S. entity with all principals based in the U.S.

Key Features:

• Maximum Loan-to-Value (LTV): Up to 85% for purchases, 80% for refinances
• Minimum Debt Service Coverage Ratio (DSCR): 1.20x

This product is designed to help property owners enhance sustainability and reduce operating costs while preserving affordable housing standards.

M-PIRE Mortgage Loan:

The M-PIRE loan program offers first lien and supplemental mortgages for conventional, affordable, and cooperative properties located within New York City’s five boroughs. This product supports additional financing for energy and water efficiency upgrades.
Eligibility Requirements:

• Property must have at least five units
• Borrower must be a single-asset U.S. entity with all principals based in the U.S.

Key Features:

• Maximum Loan-to-Value (LTV): Up to 85% for purchases, 80% for refinances
• Minimum Debt Service Coverage Ratio (DSCR): 1.20x

This program is designed to help property owners in New York City enhance sustainability while supporting affordable and cooperative housing

Tax-Exempt Bond Credit Enhancement:

The Bond Credit Enhancement program offers credit support for tax-exempt bonds used to finance the acquisition, new construction, refinancing, or moderate to substantial rehabilitation of Multifamily Affordable Housing (MAH) properties that adhere to Low Income Housing Tax Credit (LIHTC) rent restrictions.
Key Features:

• Maximum Loan-to-Value (LTV): Up to 90%
• Minimum Debt Service Coverage Ratio (DSCR): 1.15x
• Loan Terms: 10 to 30 years

This program helps improve financing terms and access for affordable housing projects by strengthening the credit profile of tax-exempt bond issuances.

Supplemental:

The Supplemental Loans product offers subordinate financing for properties that already have a fixed or adjustable Fannie Mae Mortgage Loan in place for at least 12 months.
Key Features:

• Maximum Loan-to-Value (LTV): 75%
• Minimum Debt Service Coverage Ratio (DSCR): 1.30x
• Third-Party Reports: New reports may not be required
• Early Rate Lock: Available for a fee

This product provides additional funding flexibility for property owners looking to leverage existing Fannie Mae financing.

Choice Refinance Program:

The Choice Refinance product offers a simplified refinancing process with reduced documentation requirements for properties with existing DUS Cash or MBS mortgages being refinanced by the same lender. Eligible properties must be stabilized, well-maintained, and have mortgages in good standing.
This streamlined option makes refinancing quicker and more convenient for qualifying property owners.

Freddie Mac Mortgages

*A = Apartment AH = Affordable Housing MH = Manufactured Housing SH, = Senior Housing

9% LIHTC Cash Loan:

This loan product is designed for affordable multifamily properties that have been awarded 9% Low Income Housing Tax Credits (LIHTC). Financing options include:

• Forward commitments for new construction or substantial rehabilitation
• Acquisition or refinancing of stabilized properties
• Funding for moderate rehabilitation projects

Key Features:

• Maximum Loan-to-Value (LTV): Up to 90%
• Minimum Debt Service Coverage Ratio (DSCR): 1.15x
• Loan Terms: Up to 35 years

This flexible product supports a variety of financing needs for affordable housing developments utilizing 9% LIHTC.

Bond Credit Enhancement with 4% LIHTC:

This financing option is tailored for affordable multifamily properties that have been awarded 4% Low Income Housing Tax Credits (LIHTC). The loan can be structured for:

• Forward commitments for new construction or substantial rehabilitation
• Acquisition or refinancing of stabilized properties
• Moderate rehabilitation projects

Key Features:

• Maximum Loan-to-Value (LTV): Up to 90%
• Minimum Debt Service Coverage Ratio (DSCR): 1.15–1.20x
• Loan Terms: Up to 35 years

This product provides flexible financing solutions to support the development, acquisition, or improvement of affordable housing communities utilizing 4% LIHTC.

Bond Credit Enhancement with Other Affordability Components:

This credit enhancement program supports affordability financing for fixed- or variable-rate multifamily bonds. It covers a range of bond structures, including bond refundings, substitutions, and new issuances such as 80-20 bonds, combination bonds, 501(c)(3) bonds, as well as properties with Section 8, Section 236, or tax abatements.
Key Features:

• Maximum Loan-to-Value (LTV): Up to 85%
• Minimum Debt Service Coverage Ratio (DSCR): 1.25x
• Loan Terms: Up to 30 years

This program is designed to strengthen the credit profile of multifamily affordable housing projects, making it easier to secure favorable bond financing terms.

Cash Loan with Other Affordability Components:

This loan product provides financing for the acquisition or refinancing of stabilized affordable multifamily properties, including those with Section 8, Section 236, tax abatements, or similar affordability programs. Both fixed-rate and floating-rate cash mortgage options are available.
Key Features:

• Maximum Loan-to-Value (LTV): Up to 80%
• Minimum Debt Service Coverage Ratio (DSCR): 1.25x
• Loan Terms: Up to 30 years (longer terms may be available if HUD risk sharing is included)

This financing solution is designed to support the long-term stability and affordability of multifamily housing communities.

Direct Purchase of Tax-Exempt Mortgages:

This financing option is designed for the acquisition or refinancing of affordable multifamily properties with 4% Low Income Housing Tax Credits (LIHTC) that have at least 7 years remaining in their initial LIHTC compliance period.
Key Features:

• Maximum Loan-to-Value (LTV): Up to 90%
• Minimum Debt Service Coverage Ratio (DSCR): 1.15x
• Loan Terms: Up to 18 years
• Amortization Period: Up to 35 years

This product provides flexible financing to support the preservation and continued affordability of LIHTC properties.

Preservation Rehabilitation Financing:

This loan product provides financing for the moderate rehabilitation of affordable multifamily properties utilizing new Low-Income Housing Tax Credits (LIHTC).
Key Features:

• • Maximum Loan-to-Value (LTV): Up to 90%
  • Minimum Debt Service Coverage Ratio (DSCR): 1.15x
  • Loan Terms and Amortization: Up to 35 years

This solution is ideal for property owners looking to upgrade and preserve affordable housing while leveraging new LIHTC allocations.

Supplemental Loan:
This supplemental loan is available for stabilized properties that have an existing Freddie Mac first lien mortgage.
Key Features:

• Minimum Loan Amount: $1 million
• Interest-Only Options: Available
• Maximum Loan-to-Value (LTV): Up to 80%
• Minimum Debt Service Coverage Ratio (DSCR): 1.25x

This product offers additional financing flexibility for property owners seeking to leverage their stabilized assets.

Tax-Exempt Bond Securitization (TEBS):

The TEBS (Tax-Exempt Bond Securitization) product allows a Sponsor to transfer privately placed tax-exempt multifamily revenue bonds—and potentially related taxable bonds or mortgages—to FHLMC. In return, the Sponsor receives FHLMC senior Class-A M certificates, which are sold to investors, and retains the Subordinate Class-B M certificates.
Key Features:

• Minimum Pool Size: $100 million
• Minimum Debt Service Coverage Ratio (DSCR): 1.05x

This structure provides enhanced liquidity and investment flexibility for sponsors of multifamily affordable housing projects.

Variable Liquidity Pricing:

This variable-rate product features a unique liquidity pricing structure, combining a fixed component set for five years with a variable component that adjusts every 90 days. Extensions are available, with the fixed component repriced at each extension.
Designed for Targeted Affordable Housing (TAH) retail bond credit enhancement transactions—including immediate funding, funded forwards, and Tax-Exempt Bond Securitization (TEBS) transactions—this product offers flexibility and tailored financing solutions.
Key Features:

• Maximum Loan-to-Value (LTV): Up to 80%
• Liquidity Contract Duration: 5 years
• Credit Enhancement Duration: 10 to 30 years

This product is ideal for affordable housing projects seeking adaptable liquidity and credit enhancement options.

Small Balance Mortgages:

The Freddie Mac Small Balance Loan Program offers financing solutions for small balance mortgages, with loan amounts ranging from $1 million to $5 million. Borrowers can choose between hybrid adjustable-rate (ARM) or fixed-rate options, with both partial-term and full-term interest-only payment features available.

This program is designed for efficiency, providing a streamlined approval process and competitive pricing, making it an attractive choice for smaller multifamily property financing needs.

FHA Mortgages

*A = Apartment AH = Affordable Housing C = Cooperative H = Hospitals MC= Memory Care SH = Senior Housing SNF= Skilled Nursing Facilities

Rental Housing – Section 207:

Section 207 of the National Housing Act was originally created to insure mortgages for the construction and substantial rehabilitation of multifamily rental housing. Over time, however, its use for these purposes has declined significantly. Developers and lenders now overwhelmingly prefer Section 221(d)(4), which offers more favorable terms, such as higher loan-to-value ratios, longer amortization periods, and more flexible underwriting standards. As a result, Section 207 is rarely used for new construction or substantial rehabilitation projects today.

Despite this shift, Section 207 still plays an important role in the multifamily housing finance landscape. It serves as the underlying insurance program for the Section 223(f) refinancing program, which is designed for the acquisition or refinancing of existing, stabilized multifamily properties. Through Section 223(f), property owners can benefit from long-term, fixed-rate, non-recourse financing, making it an attractive option for those looking to refinance or acquire multifamily assets.

Notably, in fiscal year 2013, the Department of Housing and Urban Development (HUD) did not insure any new mortgages under Section 207 for new construction or substantial rehabilitation, highlighting the program’s shift in focus. Today, Section 207’s primary relevance is as the foundation for Section 223(f) refinancing, while Section 221(d)(4) remains the preferred choice for new development and major rehabilitation projects.

Manufactured Housing – Section 207:

Section 207 provides mortgage insurance to support financing for mobile home parks. This program helps lenders offer more favorable loan terms for the development, acquisition, or refinancing of mobile home park communities by reducing their risk through federal insurance.

Cooperative Housing – Section 213:

Section 213 is designed to facilitate the development, substantial rehabilitation, and purchase of cooperative housing projects. In a cooperative, residents purchase shares in the corporation that owns the property, which gives them the exclusive right to occupy a specific unit and participate in the property’s management and decision-making. This structure allows residents to collectively own and operate their housing, promoting a sense of community and shared responsibility.

In fiscal year 2013, the Federal Housing Administration (FHA) insured two cooperative projects under Section 213, encompassing a total of 114 units. The combined insured mortgage amount for these projects was $16.7 million, averaging $8.35 million per transaction. This program continues to provide an important financing option for cooperative housing, supporting both new developments and the preservation of existing cooperative communities.

Rental Housing for Urban Renewal and Concentrated Development Areas – Section 220:

Section 220 is designed to support the development and rehabilitation of multifamily housing in urban renewal areas, code enforcement zones, and other designated revitalization districts. This program is eligible for Multifamily Accelerated Processing (MAP), which streamlines the application and approval process for borrowers.

In 2013, the FHA insured four multifamily projects under Section 220, encompassing a total of 788 units. The total insured mortgage amount for these projects was $111.3 million, with an average of $27.8 million per project. This program plays a vital role in promoting affordable housing and revitalization in targeted urban communities.

Rental & Cooperative Housing – 221(d)(4):

Section 221(d)(4) provides financing for the construction or substantial rehabilitation of rental and cooperative housing aimed at moderate-income and displaced families. The program offers long-term mortgages with terms of up to 40 years, making it an attractive option for developers seeking stable, extended financing. It is also eligible for Multifamily Accelerated Processing (MAP), which helps expedite the application and approval process.

In fiscal year 2013, the FHA insured 160 projects under Section 221(d)(4), resulting in the creation or rehabilitation of 24,997 housing units. The total insured mortgage amount reached $2.47 billion, with an average loan size of $15.4 million per project. This program continues to play a significant role in expanding and preserving affordable housing options for families in need.

Existing Multifamily Rental Housing – Sections 207/223(F):

Sections 207/223(f) provide financing for the purchase or refinancing of existing multifamily properties. These programs are not available for projects requiring substantial rehabilitation, which must instead use the Section 221(d)(4) program. Any critical repairs identified must be completed before the loan is endorsed. Section 223(f) also qualifies for Multifamily Accelerated Processing (MAP), streamlining the approval process.

In fiscal year 2013, the FHA insured 740 projects under these sections, covering a total of 126,388 units. The combined insured mortgage amount was $7.7 billion, resulting in an average project size of $10.4 million. This program remains a key tool for preserving and improving the nation’s existing multifamily housing stock.

Supplemental Multifamily Mortgages – Section 241(a):

Section 214(a) provides supplemental mortgage financing for projects already insured under an FHA program. This additional funding can be used to extend the economic life of the original loan and is available for repairs, expansions, or improvements to multifamily properties, group practice facilities, hospitals, and nursing homes. The program also allows for the inclusion of major equipment purchases for insured medical facilities.

In fiscal year 2013, the FHA insured three projects under Section 214(a), covering a total of 398 units. The total insured amount was $16.9 million, averaging $5.6 million per project. This program offers valuable support for maintaining and upgrading existing FHA-insured properties and healthcare facilities.

Risk-Sharing Program – Qualified Participating Entities (QPE) – Section 542(b):

Section 214(a) provides supplemental mortgage financing for projects that are already insured under an FHA program. This financing helps extend the economic life of the original loan and can be used for repairs, additions, or improvements to multifamily housing, group practice facilities, hospitals, and nursing homes. Additionally, major equipment purchases for insured medical facilities may be included in the mortgage under this program.

In fiscal year 2013, the FHA insured three projects through Section 214(a), totaling 398 units. The combined mortgage amount was $16.9 million, with an average loan size of $5.6 million per project. This program supports the ongoing maintenance and enhancement of existing FHA-insured properties and healthcare facilities.

Housing Finance Agency Risk-Sharing – Section 542(c) :

Section 542(c) offers credit enhancement for mortgages on multifamily projects, with loans underwritten and serviced by Housing Finance Agencies (HFAs) through a risk-sharing arrangement. This program is designed to encourage the development and preservation of affordable multifamily housing by sharing the risk between the FHA and participating HFAs.

In fiscal year 2013, the FHA provided insurance for 54 projects under Section 542(c), covering a total of 5,009 units. The total insured mortgage amount reached $355 million, resulting in an average loan size of $6.6 million per project. This risk-sharing initiative helps expand access to financing for affordable rental housing across the country.