Fannie Provided $1.6B of Financing in 2015 for Small Multifamily Loans
Good piece in National Mortgage News about the volume of lending that Fannie is providing to buyers of smaller multifamily properties. We have certainly taken advantage of this program, and it is good to see that it is growing and that it is a "critical part" of their work!
The availability of financing at rates that are now within 20 basis points of the large balance loans is a big deal in the small property space - especially since smaller complexes can often be purchased at cap rates that are 200 basis points better than those for which larger complexes sell for.
From the Article:
Fannie Mae touted its financial support to the small multifamily loan market last year, saying it provided $1.6 billion in financing to the sector.
The company defines small loans as those $3 million or less nationwide and $5 million or less in high-cost markets, as well as properties with five to 50 units.
The financial support was made available to about 33,000 small loans last year, the vast majority of which supported affordable and workforce housing. Fannie's product offerings for small loan issuers include streamlined underwriting and processing.
"Small loans are a critical part of the work we do to make affordable, quality rental housing a reality for renters in urban areas and smaller markets across the nation," said Bob Simpson, multifamily vice president for affordable, green and small loans.
The Fannie-certified lenders that produced the highest volume of small loans last year were Greystone Servicing Corp., Arbor Commercial Funding, Walker & Dunlop, Hunt Mortgage Group and PNC Real Estate.
Entire Article Here: http://www.nationalmortgagenews.com/news/origination/fannie-provided-16b-of-financing-in-2015-for-small-multifamily-loans-1072785-1.html?utm_medium=email&ET=nationalmortgage:e6196307:4100271a:&utm_source=newsletter&utm_campaign=daily%20briefing-feb%2029%202016&st=email