- Lower interest rates and competitive pricing.
- Flexible loan terms.
- Speed in processing and underwriting, with simple Loan Document modifications.
- Straightforward annual rent monitoring.
- Can be combined with Fannie Mae Green Financing.
- Existing, stabilized Conventional properties.
- A minimum of 20% of units must be made affordable to households earning up to 80% of AMI or, in certain metros, up to 100% – 120% AMI.
- The identified units will have workforce housing rents for the Mortgage Loan term.
- Rent affordability levels are identified and in place by the Mortgage Loan Origination Date.
- The Property has 12 months from the Mortgage Loan Origination Date to comply with the SDW rent restrictions. The Lender is responsible for notifying Fannie Mae on noncompliance.
5 – 30 years.
Up to 30 years.
Fixed- and variable-rate options available. Structured ARM Loans with a lockout period of less than two-years are not eligible.
LOAN DOCUMENT REQUIREMENTS
- Modifications to Loan Agreement (Sponsor-Dedicated Workforce Housing) (Form 6271.SDW); and
- Modification to Security Agreement (Sponsor Dedicated Workforce Housing) (Form 6325).
ANNUAL COMPLIANCE REQUIREMENTS
The Servicer manages the affordability requirements, including verification of the SDW rent restrictions. The Borrower must annually submit a certification of compliance via the Supplemental Annual Loan Agreement Certification (Form 6620.Supplemental.SDW) and rent rolls to the Servicer.
Supplemental loans are available.
Mortgage Loans may be voluntarily prepaid upon payment of the applicable Prepayment Premium, either Yield Maintenance or Graduated Prepayment Premium.
30- to 180-day Rate Lock periods are available.
30/360 and Actual/360.
Replacement reserve, tax and insurance escrows are typically required.
Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment and Property Condition Assessment.
Loans are typically assumable, subject to review and approval of the new Borrower’s financial capacity and experience.
The Property must comply with the SDW rent restrictions within 12 months of the Mortgage Loan Originations Date. The Lender is responsible for notifying Fannie Mae of noncompliance.