Fannie Mae’s New Moderate Rehab Supplement Loan Allows Borrowers to Tap into Equity
WASHINGTON, DC – Fannie Mae (FNMA/OTC) introduced a new Moderate Rehabilitation Supplemental Loan that allows multifamily property owners to take advantage of increases in the value of their multifamily properties following significant renovations.
“Our new Mod Rehab Supplemental Loan is a great example of providing value through collaboration with our Delegated Underwriting and Servicing (DUS®) Lenders, because together we’re always looking for better ways to serve the needs of multifamily borrowers,” said Hilary Provinse, Senior Vice President for Multifamily Customer Engagement, Fannie Mae. “Enhancing our Mod Rehab execution with the new supplemental loan is a win for borrowers wanting to secure additional funding on their terms – with certainty of execution, speed, and the flexibility of our single-asset security – and a win for our DUS Lenders because these loans are delegated.”
The new Mod Rehab Supplemental Loan coupled with Fannie Mae’s Mod Rehab execution is a great tool for borrowers to recognize increases in the value of their properties that result from renovations.
As apartment buildings age and borrowers look to maximize rehabilitation opportunities, Fannie Mae’s new Mod Rehab Supplemental Loan gives borrowers access to equity when coupled with an existing Mod Rehab loan. Borrowers can take advantage of the increased value created through the renovation of a multifamily property that has been completed within 36 months of first lien origination and amounts to at least $10,000 per unit. Also, borrowers may qualify for a standard Supplemental Loan in addition to the new Mod Rehab Supplemental Loan.
Whether borrowers are refinancing loans or looking for new acquisition opportunities, Fannie Mae offers flexible and creative solutions as borrowers determine the next steps to achieve portfolio strategies and maximize rehabilitation opportunities.
For 29 years, Fannie Mae Multifamily has relied on its unique risk-sharing DUS platform to provide financing and securitization for quality rental housing in the United States, while balancing risk and return – in every market, for every income level, every day.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.