Fannie Mae Financing Programs - Refinancing, Permanent Finance Programs

Fannie Mae Delegated Underwriting and Services Program (DUS)


Under Delegated Under-writing and Servicing (DUS) Fannie Mae purchases eligible multifamily mortgages from our correspondent mortgage company, which has been delegated the responsibility for originating, underwriting, closing, and delivering multifamily mortgages without Fannie Mae's prior review. DUS allows us to act quickly and be flexible in structuring transactions. 

DUS lenders have full authority up to $20 million. Loan size above $20 million available with Fannie Mae approval 
Commercial space - maximum of 20% space/income 
Occupancy - minimum 90% for ninety days 

Fixed or adjustable rate, balloon mortgages with 5, 10, 15, or 18-year terms 
Interest only mortgage available 
Fully amortizing mortgages and other specially negotiated terms available 
Thirty year amortization available 
"Non-recourse" except for certain loan violations , which are typical in the industry 
Assumable in accordance with the limiting conditions of the loan documents 
Standard mortgage documents 
Pre-payable with yield maintenance or defeasance 

Interest rates are offered by Fannie Mae and our correspondent mortgage company under a four-tier interest rate structure. Interest rates are based on spreads over benchmark "on the run" Treasury rates. Best interest rates are available for mortgages with a higher debt service coverage (DSC) and lower loan-to-value ratios 
For a standard transaction, the following sets forth the minimum DSC ratios and maximum LTV ratios acceptable for each pricing tier 

TIER Min DSC ratio Max LTV ratio 
One 115%  80% 
Two 125% 80% 
Three 135% 65% 
Four 155% 55%

Tier Three and Four loans also offer reduced due diligence requirements and less documentation. Market affordable housing (MAH) properties (such as those with LIHTC) may be eligible for special underwriting and special pricing 

When commitment is accepted, a refundable commitment fee of two percent (2%) of the loan amount is required (3% for Early Rate Lock) 

The amount of the origination fee is a function of the size, risk and complexity involved in each transaction 

(Once the mortgage is closed  and purchased by Fannie Mae) our correspondent mortgage company services the mortgage 

Annual deposits are generally funded for nearly all properties - flexible funding terms available 

Appraisal using Fannie Mae standards 
Engineering Study 
Phase I Environmental Study 

Supplemental Financing - permitted after one year with Fannie Mae's approval. Fannie Mae currently offers a supplemental loan program to meet this need 
Assumable upon payment of 1% fee and satisfactory credit review of new borrower and at lender's option 
Processing Time - 30 to 60 days from complete application to commitment 
Early rate lock available 

Forward commitments available for new construction of Low Income Housing Tax Credit (LIHTC) developments, Tax Exempt Bond transactions and Market Rate properties affordable to tenants at or below to 100% of area median income Credit Enhancement available for fixed rate bonds and "Lower Floaters" 
Financing available for Cooperative ownership 5-50 Program with reduced reporting requirements for projects with five (5) to fifty (50) units 
Adjustable Rate Mortgage (ARM) 
Permanent fixed-rate financing for senior housing including independent living, congregate care and assisted living 
Negotiated transactions for large multifamily loans and multifamily portfolio transactions 
Aggregation program for multifamily "conduit" type transactions 
Rehabilitation program for moderately priced rental units 

Information is available on other Fannie Mae programs upon request.