Fannie Mae Fixed-Rate and Floating Rate Multifamily Loan Options

A quick refresher on Fannie Mae's flagship multifamily loan offerings.

Have you considered your Fannie Mae Fixed-rate and Floating rate multifamily loan options? When it comes to financing multifamily properties, including apartments, student housing, affordable housing, assisted living and other healthcare facilities, mobile home parks, and more, Fannie Mae typically offers the most competitive fixed rate and floating rate financing, with the only true competitor being Freddie Mac. 

However, prepayments can be an issue, and qualifying can be challenging, as Fannie Mae loans require very experienced borrowers with strong financial statements and rigorous property underwriting. For full transparency, it isn’t uncommon to find that borrowers who don't qualify for Fannie Mae financing find CMBS loans are a highly effective alternative. 

Even so, as we mentioned previously, Fannie Mae multifamily loans are particularly well suited for affordable housing financing, and can easily fund affordable housing rehabilitation, especially when paired with the LIHTC (Low-Income Housing Tax Credit) program. Fannie Mae financing is also a good choice for financing properties previously under HUD legacy programs that are being converted to Section 8 housing under the Rental Assistance Demonstration (RAD) program. 

Sample Fannie Mae Terms For Apartment Loans often look like this:

  • Size: Generally $1 million to $100 million

  • Terms: 5, 7, 10, and 12-year terms

  • Amortization: 30 years

  • Maximum LTV: 75% - 80%

  • Minimum DSCR: 1.25x 

  • Recourse: Non-recourse with standard “bad boy” carve-outs

  • Rate Lock: 30 to 90-day commitments. An early rate lock feature is available allowing the borrower to lock a rate 45 to 180 days in advance of closing.

  • Prepayment Options: Yield maintenance and other graduated prepayment options are available. There is no prepayment premium if the loan is paid within the last 90 days of the loan term.         


  • Highly competitive pricing.

  • Early rate lock.

  • Up to 80% LTV.

  • Non-recourse.


  • Selective of the properties they will finance.

  • Requires financially strong borrowers.