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:
Green Financing Loan Incentives
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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 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.
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.
Green MBS, like our standard DUS MBS, are generally backed by a single loan on a multifamily property.
DUS MBS become green in one of two ways: by utilizing Fannie Mae Green Financing or by receiving a green building certification.
Fannie Mae will disclose a property's ENERGY STAR® Score and Energy Use Intensity (EUI) if the property is subject to a local benchmarking law.