NEW YORK, June 21, 2016 (GLOBE NEWSWIRE) -- Greystone, a real estate lending, investment and advisory company, is working with Fannie Mae on a new Multifamily Affordable Housing (MAH) financing enhancement to Fannie Mae’s underwriting guidelines for small loans. The new financing option enables Greystone to leverage its existing, top-rated MAH finance expertise for acquisitions and refinancings of smaller affordable housing properties requiring loans up to $5 million.
To qualify for the new Fannie Mae MAH Small Loan financing, properties must meet specific rent, income and/or occupancy restrictions, including one of the following:
- At least 20% of all units have rent or income restrictions in place such that the rents charged for those units are affordable to households earning no more than 50% of Area Median Income (“AMI”) as adjusted for family size;
- At least 40% of all units have rent or income restrictions in place such that the rents charged for those units are affordable to households earning no more than 60% of AMI as adjusted for family size;
- At least 20% of all units are subject to a Section 8 Housing Assistance Payment contract; or
- The property (i) has other rent and/or income restrictions, and (ii) meets a noteworthy special public purpose. Such a property may be considered on a waiver basis for eligibility as an MAH Property.
The maximum size loan available through this program ranges from $3 million to $5 million, depending on the geographical region. The loans include fixed rate and adjustable rate at 7-year terms or longer.
"The new Fannie Mae Small Loans financing parameters for affordable housing are a game changer for the affordable sector, opening up a fantastic permanent loan option for owners and investors of affordable housing nationwide," said Jeff Englund, Senior Managing Director and head of Greystone’s Affordable Housing financing group. “With our long-established practices in both affordable and small loan executions, we have the speed and efficiency to ramp up quickly on this new product.”
Mr. Englund added, “Enabling attainable financing for income- and age-restricted communities is critical to the survival of much-needed affordable housing in the U.S., and Greystone remains committed to this sector as a leader in affordable housing finance.”
Greystone provides mortgage finance solutions across multiple platforms, including FHA, Fannie Mae, Freddie Mac, USDA, CMBS, bridge, mezzanine and other proprietary loan programs.
Greystone is a real estate lending, investment and advisory company with an established reputation as a leader in multifamily and healthcare finance, having ranked as a top FHA and Fannie Mae lender in these sectors. Our range of services includes commercial lending across a variety of platforms such as Fannie Mae, Freddie Mac, CMBS, FHA, USDA, bridge and proprietary loan products. Loans are offered through Greystone Servicing Corporation, Inc., Greystone Funding Corporation and/or other Greystone affiliates. For more information, visit www.greyco.com.
PRESS CONTACT: Aziree Pemberton Greystone 212-896-9150 Aziree.Pemberton@Greyco.com