Learn about the Credit Facility execution that allows borrowers to arrange flexible financing terms for a portfolio of properties.
- MBS execution that allows ultimate flexibility in portfolio management
- Allows opportunistic sale or release of properties
- Expansion feature allows easy addition of properties
- Recognize portfolio improvements with first lien borrow-ups
- Retain favorable interest rates with property substitutions
- Ladder maturities with multiple tranches of debt
- Pre-negotiated loan documents provide for certainty of execution and fast closings for facility expansions
- New or repeat Fannie Mae Borrowers
- Available for all asset classes
Credit Facility Size
Minimum initial advance of $55 million with unlimited expansion capacity.
15 year Credit Facility, with 5 -15 year loan terms, available for maturity laddering.
Fixed, variable, or a combination thereof. Variable-rate advances may be converted to fixed rate.
An interest rate cap or other hedging arrangement is generally required for all variable-rate advances.
Interest-only and amortizing available, based upon property and pool performance.
Up to 80% depending upon asset class and product type.
1.20x depending upon asset class and product type.
- Single or multiple loans.
- Single or multiple collateral pools.
- No rebalancing required.
- No unused capacity fees.
All structuring options/features subject to the terms of the Master Credit Facility Agreement.
Flexible prepayment options available, including partially pre-payable debt, yield maintenance and declining prepayment premium.
A single purpose, bankruptcy-remote entity is required for each borrower and any general partner, managing member, or sole member that is an entity. Borrowers must have common sponsorship.
30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.
Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.
Replacement reserve, tax, and insurance escrows are typically required.
Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.
Assumption of the entire facility is permitted upon satisfaction of the requirements of the Master Credit Facility Agreement.
Fannie Mae charges the following fees:
- Structuring fee: 10 basis points on each advance.
- Due Diligence fee: $1500 per property.
Other fees (e.g. substitution, release, assumption, and review) may apply.
Financial and operating covenants and geographic diversity requirements determined on a case-by-case basis.