Multi-Family Rental: Permanent Financing

This is a product funded by the Member Loan Pool. Multi-family rental properties are properties with at least five rental units.

The primary loan structure parameters are presented under Lending Guidelines. The following items are specific to the Permanent Loan structure.

• Loan terms can be obtained up to 30 years, but must be pre-sold. All pre-sold loans with a loan term greater than 15 years will have a loan condition that the loan term will be reduced to 15 years if the sale does not close.

Prepayment premiums will follow the Fannie Mae Yield Maintenance formula when the interest rate adjustment period exceeds 5 years, or if the loan is to be sold in the secondary market. For interest rate adjustment periods of 5 years or less, it will be a predetermined percentage of 1%-3%, based on the remaining years in the adjustment period.