Fannie Mae offers a lower all-in interest rate on a loan secured by a multifamily property with a Fannie Mae-recognized green building certification. The property must possess a current certificate prior to rate lock. Loans on properties with a Green Building Certification will be disclosed as a Green MBS.
Fannie Mae recognizes select certifications, as listed below. Please see Form 4250 for complete eligibility requirements and the levels assigned to each certification.
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.)