Fannie Mae will increase the loan limit of small mortgage loans to $6 million from $3 million or less nationwide and $5 million or less in high-cost markets, effective immediately.
The aim, says the organization, is to "ensure an adequate supply of affordable housing for working families" and provide more opportunities for borrowers to realize the benefits of streamlined third-party report, underwriting, and asset-management requirements.
“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. “Our commitment to providing sustainable financing solutions that enhance the affordability, security, and convenience of financing smaller properties plays an important role in securing a key source of housing for working families.”
The GSE has also added several new markets that are eligible to receive certain pricing and underwriting benefits, including Denver, Miami, Minneapolis, and Salt Lake City. These markets have seen credit and economic performance comparable to Fannie Mae’s other eligible MSAs, including Baltimore; Boston; Chicago; Los Angeles; New York City; Oxnard, Calif.; Philadelphia; Portland, Ore.; Sacramento, Calif.; San Diego; San Francisco; San Jose, Calif.; Seattle; and Washington, DC.
For more information about Fannie Mae’s Multifamily Small Loan finance program, visit the Small Loan website.
