Standard FHA Risk Sharing Execution

The Standard FHA Risk Sharing execution for Multifamily Affordable Housing (MAH) transactions provides better pricing for Borrowers while retaining the ease of working with their Fannie Mae Lender. MBS and Credit Enhancement Mortgage Loans for bond executions are available.

Term Sheet (PDF)


  • Highly competitive pricing for MAH transactions.
  • Certainty and speed of execution
  • One stop customer service – Borrowers only need to work with their Fannie Mae Lender who will handle the Mortgage Loan execution


  • Multifamily Affordable Housing properties with income and rent restrictions effective the entire loan term
  • Immediate and Forward Commitment executions

Loan Amount

No minimum or maximum; however, Mortgage Loans over $50 million require HUD consent.


15 – 40 years.


Full amortization up to 40 years; Balloon structures capped at 30-year amortization.

Interest Rate

Fixed rate

Maximum LTV

Up to 90% “as stabilized”

Minimum DSCR

1.15x – 1.20x “as stabilized”

Property Considerations

The rent and income restrictions applicable to the Property must remain in effect for at least the term of the Mortgage Loan.

Rate Lock

30- to 180-day Commitments.

Prepayment Availability

Flexible prepayment options available.

Subsidy Layering Review

A subsidy layering review is required per federal law when there is a possibility that more than one source of federal, state, or local governmental assistance may fund a transaction.


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.


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