Near-Stabilization Execution

Permanent mortgage loan financing for newly constructed or recently renovated conventional and affordable multifamily apartment communities expected to achieve stabilized occupancy within 120 days.

Term Sheet (PDF)


  • Ability to pay off construction loan and add permanent non-recourse financing prior to full stabilization
  • Competitive pricing
  • Certainty of execution
  • Speed in processing and underwriting


  • Conventional and Multifamily Affordable Housing Properties
  • Partially leased, newly constructed or recently renovated communities
  • Strong borrowers with demonstrated lease-up track record.
  • Properties in Strong and Nationwide markets.

Loan Size

$10 million or greater.


5, 7, 10, and 12 year term options are available.


5 - 30 years.

Interest Rate

Fixed- and variable-rate options available.

Maximum LTV

Maximum LTV shall be Tier compliant.

For a Tier 2 level – 75% of “as stabilized” loan-to value

Minimum DSCR

Minimum DSCR shall be Tier compliant. For a Tier 2 level –Underwritten DSCR of 1.25x, 1.15x for MAH loans.

Underwritten DSCR is defined as DSCR as deemed achievable within 4 months after rate lock and at Fannie Mae’s discretion.

Interest Only

Monthly payments of interest only for the first 12 months of the loan term, based on the actual interest rate. An additional period of interest-only payments may be available.

Property Considerations

Minimum physical occupancy of 75% at rate lock. MBS Additional Disclosure is required. Full disbursement of loan proceeds at closing. 

Prepayment Availability

Flexible prepayment options available, including yield maintenance and declining prepayment premium.

Rate Lock

30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.


30/360 and Actual/360.


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


Replacement reserve, tax, and insurance escrows are typically required.

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.