Fannie Mae DUS  Loans
Refinance and Purchase Loans

ELIGIBLE PROPERTIES: Market Rate Apartments Class A, B, C, or Mixed use or
affordable housing properties.  Loans greater than $3,000,000 – FNMA Small Loan
for less than $3,000,000

Refinance and Purchase: New construction or older properties

Minimum Occupancy: 90% at the time of commitment for preceding three-month

LOAN TYPE:  Balloon mortgages with a 5, 7, 10, 15 or 30 year fully amortizing

PREFERRED LOAN SIZE: $2 million and up - Under $2 Million go to Small Loans

MAXIMUM LOAN: Amount equal to the lesser of:

1. 80% of appraised value or purchase price within one year; or 75% Cash Out
2. 1.25 debt service coverage.

INTEREST RATES: Market rates at the time of rate lock. Rates vary by loan-to-value
ratio, debt service coverage and property quality. Recently under 5% for 10 year

AMORTIZATION: Up to 30 years.

PERSONAL RECOURSE: None, except for standard exceptions

ASSUMABILITY: Assumable, subject to approval and a 1% transfer fee

PREPAYMENT: Yield maintenance or defeasance options

SUBORDINATE FINANCING: Fannie Mae Supplemental Loans (second mortgages)
available 12 months after loan closing

ESCROWS: 125% to 150% of estimated cost of required repairs, if any, as determined
by physical inspection. Monthly escrows for real estate taxes, property insurance
and replacement reserves

APPLICATION FEE: Typically $15,000 for appraisal, environmental assessment and
other loan processing costs

FINANCING FEE: Typically 1%

CLOSING EXPENSES: Standard transaction costs, including legal fees, title
insurance and survey
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