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Bulk Delivery

This structuring option allows borrowers to arrange flexible financing terms for a group of properties with property substitution, supplemental financing, and expansion capabilities.

Benefits

  • Expansion feature allows easy addition of properties
  • Recognize portfolio improvements with supplemental financing
  • Retain favorable interest rates with property substitutions 

Eligibility

  • New or repeat Fannie Mae Borrowers
  • Available for all asset classes

Bulk Delivery Size

Minimum initial advance of $55 million with unlimited expansion capacity.

Term

Any loan term offered by Fannie Mae.

Interest Rate

Fixed, variable, or a combination thereof.  Variable-rate Mortgage Loans may be converted to fixed-rate.

An interest rate cap or other hedging arrangement is generally required for all variable-rate advances.

Amortization

Interest-only and amortizing available, based upon property performance.

Maximum LTV

Up to 80% depending upon asset class and product type.

Minimum DSCR

1.20x depending upon asset class and product type.

Structuring Options/Features

  • Single asset loans.
  • Asset substitution.
  • No unused capacity fees.

All structuring options/features subject to the terms of the Bulk Delivery Agreement.

Prepayment Availability

Flexible prepayment options available, including partially pre-payable debt, yield maintenance and declining prepayment premium.

Supplemental Financing

Supplemental Loans are available.

Rate Lock

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

Recourse

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

Escrows

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.

Assumption

Assumption of an individual mortgage loan is permitted upon satisfaction of the requirements of the Bulk Delivery Agreement.

Fees

Fannie Mae charges a Due Diligence fee of $1,500 per property. Other fees (e.g. substitution, assumption, and review) may apply.