Aims to address “significant affordable workforce housing supply issues”
The loan limit for Fannie Mae’s small mortgage loan program for multifamily homes has been increased to $6 million.
The increase from $3 million or less nationwide, and $5 million or less in high-risk areas, is part of Fannie Mae’s ongoing efforts to help boost affordable housing supply for working families.
The single limit of $6 million, offered nationwide, also simplifies the small loan definition and is effective immediately.
“Increasing the loan limit for our small mortgage loan program will provide more capital and liquidity to the small loan marketplace and help address the significant affordable workforce housing supply issues facing our country today," said Michael Winters, Vice President, Multifamily Customer Management, Fannie Mae.
New metropolitan statistical areas (MSAs) are also now eligible to receive certain pricing and underwriting benefits: Denver, Miami, Minneapolis, and Salt Lake City.
Fannie Mae says these newly-eligible metros have seen credit and economic performance that is comparable to its other eligible MSAs, including: Baltimore; Boston; Chicago; Los Angeles; New York City; Oxnard, CA, Philadelphia; Portland, OR, Sacramento; San Diego; San Francisco; San Jose; Seattle; and Washington, DC.
"Our commitment to providing sustainable financing solutions that enhance affordability, security, and convenience of financing smaller properties plays an important role in securing a key source of housing for working families," added Winters.
