Cooperative Properties

Fannie Mae Multifamily provides financing options for properties owned by a Cooperative Organization, which is a corporation or other legal entity where each shareholder or equity owner is granted the right to occupy a unit in a multifamily residential property under a proprietary lease or occupancy agreement.

Term Sheet (PDF)


  • Flexible loan terms
  • Competitive pricing
  • Certainty and speed of execution
  • Customized solutions


  • Existing stabilized Cooperative Properties in eligible Cooperative Property markets
  • Cooperative corporations with strong management and solid operating history
  • Limited equity cooperative properties for low- and moderate-income families are also eligible
  • Overall Property condition rating of two or better


5 - 30 years.


Up to 30 years.

Interest Rate


Maximum LTV

55% (on a market rental basis).

Minimum DSCR

1.00x for Actual Cooperative Property operations and 1.55x for Cooperative Market Rental operations.

Property Considerations

  • The property management company is required to have experience with cooperative properties of like size and market.
  • Operating Reserve balance must be equal to or greater than 10% of annual maintenance fees.
  • Maintenance fees must be sufficient to achieve a balanced budget.
  • High levels of ownership by one sponsor or investor (in excess of 40%) will require additional due diligence.

Supplemental Financing

Supplemental Mortgage Loans are available.

Prepayment Availability

Loans may be voluntarily prepaid upon payment of yield maintenance.

Rate Lock

30- to 180- day commitments.  Borrowers may use the Streamlined Rate Lock option provided that the Board of Directors or managers of the Cooperative Organization approve any increase in the Cooperative Maintenance Fee prior to using the Streamlined Rate Lock option.


Non-recourse execution is available with standard carve-outs for “bad acts” such as fraud and bankruptcy.


Replacement reserve, tax, and insurance escrows may be required.  Escrows are typically required for a Limited Equity Cooperative Property.

Third-Party Reports

Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.


Mortgage Loans secured by a Cooperative Property are typically not assumable by another entity.