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Affordable Housing Small Mortgage Program

For acquisition or refinance of stabilized multifamily properties with rent and income restrictions and/or Section 8 HAP contracts


Fannie Mae and Freddie Mac 

$1.5 Million to $5 Million in Baltimore, Boston, Chicago, Los Angeles, New York, Philadelphia, Portland, Sacramento, San Diego, San Francisco, San Jose, Seattle and Washington DC.

$1.75 Million to $3 Million in all other markets.

4.5+ fixed

No upfront fees underwriting pricing and sizing loans; no application or 3rd party fees (such as appraisals) until borrower signs FHA-Hud, Fannie Mae or Freddie Mac terms sheet

Origination: 2 points

Term: 10 years

Amortization: 30 years

LTV: 80%


Assumable for 1% fee

Requires one of the following:

  • 20%+ of all units have rent or income restrictions to households earning no more than 50% of area median income (“AMI”)
  • 40%+ of all units have rent or income restrictions in place to households earning no more than 60% of AMI
  • 20%+ of all units subject to a project-based Section 8 HAP contract

Prepayment: 1% minimum yield maintenance or declining schedule

Debt Service Coverage: 1.20X+

Supplemental mortgages available after 12 months of loan term or with assumption

Net worth equal to loan amount and liquidity equal to 6 months P&I required

Borrower must have experience in last 3 years owning similar sized affordable housing project(s) 

Good Faith Deposit of 1% due upon acceptance of commitment and is refundable upon closing

Due diligence fee: $15,000 non-refundable for legal, 3rd party reports and processing;

Timing: 45-60 days from complete application to commitment

No upfront fees; we are paid when your loan is funded at closing.

To submit your online loan request, please click the blue Get Started Link for your PRE APPROVAL Term Sheet within 48 business hours. No upfront fees, tax returns, income verification, credit cards, Social Security Numbers or credit checks required for PRE-APPROVAL.

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