Green Building Certifications Preferential Pricing Term Sheet

A pricing incentive to finance properties that have acquired a Fannie Mae-recognized green building certification that meets minimum energy efficiency and other green building requirements.

Eligible certifying organizations include U.S. Department of Energy, U.S. Environmental Protection Agency, U.S. Green Building Council, Enterprise Community Partners, Passive House Institute, and more.

Competitive Advantage (PDF)    Term Sheet (PDF)



  • Lower interest rate
  • Eligible certifications available for new construction, major renovations, and existing properties
  • Attract more investors with a Green MBS


  • Property must have a Green Building Certification that is recognized and approved by Fannie Mae per Form 4250.
  • The certification must:
    • apply specifically to the Property and not to a larger development site that includes the Property;
    • cover all residential units of the Property and all buildings or spaces considered common areas;
    • have been awarded within five (5) years prior to the Mortgage Loan Origination Date;
    • be current at the time of Rate Lock or the Mortgage Loan Origination Date, if using the Streamlined Rate Lock option
  • All certifications require Lender review and approval prior to Rate Lock or the Mortgage Loan Origination Date, if using the Streamlined Rate Lock option

Execution Options

Green MBS.


5 to 30 years.

Interest Rate

Fixed- and variable-rate options available.

Loan Amount

No minimum or maximum. 

Maximum LTV and Minimum DSCR

Varies by Asset Class and product type

Prepayment Availability

Flexible prepayment options are available. Mortgage Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate Mortgage Loans or declining prepayment premium for variable-rate Mortgage Loans.

Rate Lock

30- to 180-day commitments. Certifications must be current and approved by the Lender at the time of Rate Lock. If using the Streamlined Rate Lock option, certifications must be current and approved by the Lender by the time of Mortgage Loan Origination.


30/360 and Actual/360


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

Third-Party Reports

Standard third-party reports, including Appraisal, Phase I Environmental Assessment, and a Property Condition Assessment, are required.


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

Asset Management

Borrower must report the Property’s annual whole property energy and water data to Fannie Mae for the life of the Mortgage Loan.