If you are interested in a Fannie Mae Structured Adjustable Rate Mortgage, it's important to understand your options. Below you will find frequently asked questions concerning Structured Adjustable Rate Mortgage to help you with your lending decision. See below to find out about maximum LTV, terms and amortization, eligible properties, and more.
Fannie Mae Structured Adjustable Rate Mortgage Questions
Questions & Answers
What are the available terms and amortization?
The term available is 5,7 or 10 years with an amortization of up to 30 years
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What is the minimum Debt Service Coverage?
1.00x, using a DSCR calculated based on a variable underwriting rate. Mortgage loan amount shall not exceed that of a fixed-rate loan of similar terms.
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Is this loan non-recourse?
Yes, this is a non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.
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What are the benefits?
- Attractive low-cost financing.
- Convertible to fixed rate financing.
- Flexible loan terms and prepayment options.
- Ability to choose interest rate cap.
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What property types are eligible?
- Existing, stabilized Conventional properties; Multifamily Affordable Housing properties; Seniors Housing properties; Student Housing properties; and Manufactured Housing Communities
- Mortgage Loans secured by properties undergoing Moderate Rehabilitation may be eligible on a case-by-case basis.
- Credit Enhancement Mortgage Loans and Substantial Rehabilitation are not eligible
- Loans of $25 million or more
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