Workforce Housing: Sponsor-Dedicated Workforce

A new product initiative and pricing benefit that supports workforce housing and benefits Lenders, Borrowers, and renters for the life of the Mortgage Loan.


Sponsor-Dedicated Workforce (SDW) Housing provides a pricing incentive for Borrowers wanting to establish rent restrictions as part of a private financing approach to address the affordability crisis for missing-middle renters.

Competitive Advantage (PDF)    Term Sheet (PDF)


  • Lower interest rates and competitive pricing.
  • Flexible loan terms.
  • Creation and preservation of workforce housing.
  • Supports socially responsible housing providers.
  • Provides conventional borrowers with the opportunity to create or preserve ongoing affordability for renters.
  • Straightforward rent monitoring process.
  • Can be combined with Fannie Mae Green Financing.
  • Simple Loan Document modifications.


  • The portion of units identified will have workforce housing rents held for the life of the loan term.
  • Existing, stabilized conventional Properties.
  • Minimum of 20% of units are affordable up to 80% of AMI or, in certain metros, up to 100% – 120% AMI. Percentage of set-aside workforce units and rent affordability level may vary by market.
  • Rent affordability levels are identified and in place by the Mortgage Loan Origination Date.


5 – 30 years


30 years standard

Interest Rate

Fixed- and variable-rate options available. Structured ARM Loans with less than a two-year lockout period are not eligible for the SDW pricing incentives.

Maximum LTV


Minimum DSCR


Modifications to Loan Documents

The Borrower executes Modifications to Loan Agreement (Sponsor-Dedicated Workforce Housing) (Form 6271.SDW) and a Modifications to Security Instrument (Sponsor-Dedicated Workforce Housing) (Form 6325).

Annual Compliance Requirements

Servicer manages the affordability requirements including an annual verification of the rent restrictions using the Supplemental Annual Loan Agreement Certification (Sponsor-Dedicated Workforce Housing) (6620.Supplemental.SDW).

Execution Options


Supplemental Financing

Supplemental mortgage loans are available.

Prepayment Availability

Mortgage Loans may be voluntarily prepaid upon payment of applicable Prepayment Premium, either Yield Maintenance or Graduated Prepayment Premium.

Rate Lock

30- to 180-day Rate Lock periods are available.


30/360 and Actual/360


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.


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

Asset Management

Borrower has 12 months to comply with the rent restrictions in the Loan Documents.