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Healthy Housing Rewards Healthy Design

We offer financial incentives to Multifamily borrowers who invest in the health and well-being of the people who live in affordable housing properties.

Term Sheet (PDF)

 

Benefits

  • Lower interest rate
  • Reimbursement for Healthy Design Certification
  • Flexible underwriting to specific affordable developments
  • Flexible loan terms, and fixed- or variable-rate financing options
  • Certainty and speed of execution

Eligibility

  • Affordable Housing properties with at least 60% of the units affordable at 60% of Area Median Income or less.
  • Must obtain Healthy Design certification from an approved Fannie Mae provider.
  • One-time benefit per borrower per property. Cannot be combined with Healthy Housing Rewards Enhanced Resident Services TM

Pricing

15 basis points discount.

Term

5-30 years.

Amortization

Up to 35 years.

Healthy Design Certification

Certification fee 100% reimbursed by Fannie Mae.

Interest Rate

Fixed- and variable-rate options available.

Maximum LTV

Varies by product type.

Minimum DSCR

Varies by product type.

Prepayment Availability

Flexible prepayment options available including yield maintenance and declining prepayment premium.

Loan Amount

No minimum or maximum.

Rate Lock

30- to 180-day commitments. Borrowers may lock the interest rate using Streamlined Rate Lock option. Confirmation of Healthy Design certification is required prior to rate lock.

Accrual

30/360 and Actual/360.

Recourse

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. Confirmation of Healthy Housing Rewards features and eligibility is required.

Assumption

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

 

News Release

Fannie Mae Introduces Healthy Housing Rewards Initiative for Affordable Multifamily Properties

Financial Incentive Offered to Multifamily Borrowers Incorporating Healthy Design Features in Affordable Housing

Read More