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.


  • 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

1.0x on actual underwritten operations; 1.55x when utilizing market rate rentals.

Property Considerations

The property management company is required to have experience with cooperative properties of like size and market.

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 lock a rate 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, depending on the Underwriting Tier.  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.


Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.