Fannie Mae Announces Enhanced Hybrid Adjustable-Rate Mortgage for Small-Loan Multifamily Borrowers
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced a newly enhanced Hybrid Adjustable-Rate Mortgage loan with flexible, long-term financing and attractive prepayment options aimed at serving small-loan multifamily borrowers. This powerful financing tool combines competitive pricing and the benefits of the company's Delegated Underwriting and Servicing (DUS®) model.
"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. 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."
Fannie Mae's Hybrid ARM is a fully amortizing loan with options for a fixed rate in the first five, seven, or 10 years, automatically converting to an adjustable-rate mortgage for the remainder of the loan term with no balloon payment. The financing will be available for properties with 5 to 50 units and for loans of $5 million or less. Proceeds from the loans can be used for acquisitions or refinancings.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.