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 equal to:
- $100 million;
- $75 million with at least 3 properties at closing; or
- $55 million with at least 6 properties at closing.
Property Additions
Additions to the Bulk Delivery are permitted for 3 years following closing
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
Generally starting at 1.25x depending upon asset class and product type. Multifamily Affordable Housing may start at 1.20x.
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 prepayable debt, with a property substitution; 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.
- Assumption of the entire Bulk Delivery may be permitted but is subject to Fannie Mae’s underwriting and approval of the assuming party.
Fees
Fannie Mae charges a Due Diligence fee of $1,500 per property. Other fees (e.g. substitution, assumption, and review) may apply.
