Five Fannie Mae Multifamily Loan Programs Worth Pursuing in 2023

Fannie Mae, a government-sponsored enterprise (GSE) that extends debt capital for use in the purchasing and refinancing of properties with rentable housing units, has a wide range of loan programs available to multifamily investors. From Standard DUS® to Small Loans to Structured ARMs, Fannie Mae multifamily loans provide excellent terms and competitive, tiered pricing that enable investors to generate steady and reliable income streams in all economic cycles.

For more than 15 years, Arbor has been a Fannie Mae Top 10 DUS® Lender, providing us with industry-leading experience and expertise to provide optimal client service.

1) Standard DUS®

Fannie Mae Standard DUS® loans are available through Arbor to acquire or refinance multifamily properties nationwide, including conventional, workforce, affordable, and manufactured housing. With fixed-rate and adjustable-rate options available, these Fannie Mae multifamily apartment loans include competitive, tiered pricing and customizable terms. Standard DUS® loans, which start at $6 million, have loan terms of up to 30 years.

Key benefits:

• Flexible loan terms
• Competitive pricing
• Certainty of execution

2) SARM Loans

Structured Adjustable-Rate Mortgage Loans (SARM Loans) provide long-term financing with a very competitive variable interest rate, which may be converted to a fixed rate for the acquisition or refinance of multifamily properties. This powerful Fannie Mae multifamily financing tool offers borrowers the lowest all-in rate and an array of pre-payment options.

Key benefits:

• Low-cost financing
• Convertible to a fixed rate
• Flexible loan terms
• Certainty of execution

3) Hybrid ARMs

Hybrid ARM loans are mortgage loans that blend the characteristics of fixed-rate and adjustable-rate loans. Fannie Mae’s 30-year multifamily loans have an initial term where interest accrues at a fixed rate, and then the loan automatically converts to accrue interest at an adjustable rate for the remainder of the loan term.

Key benefits:

• Competitive interest rates
• Low cost of execution
• Speedy transactions
• Certainty of execution

4) Small Loans

Fannie Mae’s Small Loans are specifically designed for the financing of smaller rental properties, including affordable and workforce housing located in urban areas. The Fannie Mae Small Loans program, in which Arbor placed in the Top 2 in 2022, offers fixed- and variable-rate financing with loan sizes of up to $9 million available. Like other Fannie Mae multifamily products, Small Loans structures are fully customizable to meet the needs of investors’ goals.

Key benefits:

• Flexible terms
• Competitive interest rates
• Supplemental financing
• Pre-payment flexibility
• Certainty of execution

5) Green Financing

Fannie Mae’s Green Financing can create a “triple bottom line” by supporting increased cash flows, higher quality housing, and reduced energy and water usage. Available at a minimum loan amount of $750,000, green loans have lower interest rates, deliver up to 5% more in loan proceeds and come with an energy and water audit report that is fully paid by Fannie Mae.

Learn More About Arbor’s Fannie Mae Multifamily Loan Programs

Arbor has been a Top 10 Fannie Mae DUS® Multifamily Lender for more than a decade and is one of the longest-tenured and most experienced lenders licensed under the program. We value our customers to such an extent that we’re more comfortable calling them partners.

Relationships are the foundation of our business, and we’re committed to providing the best service in the industry. Arbor originators personally customize Fannie Mae multifamily loan solutions for borrowers nationwide. Contact us today to learn how we can help you achieve your investing goals.

Interested in the multifamily real estate investment market? Contact Arbor today to learn about our array of multifamily and single-family rental financing options and view our other market research and multifamily posts in our research section.