Fannie Mae has announced a newly enhanced Hybrid Adjustable-Rate Mortgage loan aimed at serving small-loan multifamily borrowers.
The fully amortizing loan has options for a fixed rate in the first 5, 7 or 10 years, automatically converting to an adjustable-rate mortgage for the remainder of the loan term with no balloon payment.
"We are very excited to offer our newly enhanced Hybrid ARM to borrowers," said Mike Winters, Vice President for Multifamily Customer Engagement, Fannie Mae. "This product enhancement is a very important step in our Small Loans strategy to continue to meet our housing goals, to work with our DUS Lenders to better serve the Small Loans market and to provide more liquidity to this market.”
The financing will be available for properties with 5 to 50 units and for loans of $5 million or less and proceeds from the loans can be used for acquisitions or refinancings.
“This is a great example of the collaboration that drives our strong partnership with our lenders as we continue to look for ways to make it easier for our partners to do business with us," added Winters.
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