FANNIE MAE DUS® Cooperative Apartment Financing
LOAN AMOUNT$750,000 minimum
LOAN TERM5 to 30 years
AMORTIZATIONUp to 30 years
MINIMUM DSCR1.0x for cooperative; 1.55x as market rental project
MAXIMUM LTV55% (on a market rental basis)
ELIGIBLE PROPERTIESCooperative projects, minimum five units, property condition rating of two or better, limited equity cooperative properties for low- and moderate-income families
ELIGIBLE BORROWERSingle asset cooperative corporations
MARKET ACCEPTANCEProperty must be located in an area evidencing strong market acceptance of cooperative housing
OCCUPANCY REQUIREMENT85% physical occupancy and 70% economic occupancy for 90 days prior to commitment date
TAX & INSURANCE ESCROWSMonthly deposits required
REPLACEMENT RESERVEUnderwritten at a minimum $250 per unit per annum
RECOURSENonrecourse execution available with standard carve-outs for “bad acts” such as fraud and bankruptcy
REQUIRED REPORTSAppraisal, Property Condition Assessment and Phase I Environmental
PREPAYMENTLoans may be voluntarily prepaid upon payment of yield maintenance
SUBORDINATE FINANCINGAvailable through Fannie Mae supplemental loan program
PRICINGTiered pricing matrix; more favorable terms available for higher DSC and lower LTV
RATE LOCK30- to 180-day commitments; borrowers may lock a rate with the Streamlined Rate Lock option
APPLICATION DEPOSIT$20,500; covers estimated processing and legal fees
ORIGINATION FEEMinimum 1%; par pricing available
GOOD FAITH DEPOSIT2% of loan amount, due at rate lock, refundable post-closing