Fannie Mae recently increased the maximum Small Loan size from $6 million to $9 million, which opens the door for more properties to take advantage of this efficient non-recourse financing program.
Here is a quick snapshot of the Fannie Mae Small Loan program benefits:
- Custom Terms: Offers 5- to 30-year fixed-rate loan terms, with part- or full-term interest only.
- Prepayment Flexibility: Select yield maintenance or declining prepayment options to complement your business plan.
- Rate Lock Options: Mitigate volatility with 30- to 180-day rate lock commitments and the option for a Streamlined Rate Lock or Dual Rate Lock (75% - 80% of proceeds rate locked shortly after application, the remaining after completion of underwriting). Good faith deposit as low as 1%.
- Streamlined Due Diligence: Reduced third-party reports and environmental screening deliver faster underwriting and lower costs.
You can access the full Fannie Mae Small Loan term sheet here.
Please don't hesitate to reach out to the NewPoint team with any questions.