Green Financing Loans

Multifamily Green Financing Loans provide additional loan proceeds for energy and water efficiency retrofits and general property improvements while working with your Fannie Mae Lender.

Fannie Mae Offers Green Financing for Every Need

Fannie Mae offers has a green financing loan option for any property investing in smart, cost-saving property improvements. Cut energy costs, reduce water bills and preserve property values with Fannie Mae’s Green Rewards, Green Preservation Plus or Green Building Certification Pricing Break. Green Financing is available for:

  • Properties already Green Building Certified or seeking to make energy- and water-saving property improvements
  • Affordable and conventional properties nationwide
  • Acquisition, refinance or supplemental loans
  • Multifamily, Cooperative, Seniors, Military & Student

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Green Financing Loan Options Summary

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Green Rewards

Green Rewards provides additional proceeds and a lower interest rate to multifamily property owners to make smart property investments. This product feature can be used with any Fannie Mae loan and term, and offers 10 basis points off the all-in interest rate and up to an additional 5% in loan proceeds. Use Green Rewards to make energy and water efficiency improvements, install solar panels or CHP systems or to achieve a Green Building Certification.

Green Preservation Plus

Green Preservation Plus assists owners to transform aging affordable housing and make smart investments for the long term. Flexible loan terms allows owners to access extra loan proceeds for general and property improvements that prevent deterioration and cut energy and water waste.

Lower all-in interest rate on loans for multifamily properties with Green Building Certification

Fannie Mae is recognizing the value of Green Building Certifications by offering a lower interest rate on loans for multifamily properties that have a Green Building Certification. For these certified properties, Fannie Mae is granting a 10 basis point reduction in the interest rate of a multifamily refinance, acquisition, or supplemental mortgage loan. For example, if the market interest rate is 4% on the multifamily loan, the new rate is 3.9% with this pricing break. On a $10 million dollar loan amortizing over 30 years, the owner would save $95,000 in interest payments over a 10 year term.

Property owners may access this reduction in interest rate with any multifamily acquisition, refinance or supplemental financing offered by Fannie Mae Multifamily.

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About Green Building Certifications

Fannie Mae recognizes a number of certifying organizations that provide Green Building Certifications for multifamily properties. Properties with these certifications are eligible for an interest rate reduction on their loans and will be disclosed as a Green MBS. Other certifications may be recognized by Fannie Mae at the time of financing.

Multiple organizations award a Green Building Certification for multifamily properties. A Green Building Certification indicates that that a multifamily property has met pre-defined energy efficiency, water efficiency or other environmental sustainability criteria. Depending on the certification, properties may be newly constructed or retrofitted to meet the criteria. In a green certified building, renters may have lower monthly energy and water costs, and live in an apartment that is more comfortable in the heat of summers and the cold of winters. Owners may see a reduction in their energy and water costs, higher occupancy rates and increased property sales prices.

(Source: "Energy Efficiency & Financial Performance: A Review of Studies in the Market", U.S. Department of Energy, March 2014.)