Fannie Mae Increases Small Loan Limit for the Multifamily Market
In February 2019, Fannie Mae announced that it has increased the maximum unpaid principal balance (UPB) for multifamily mortgage loans to be designated "small loans" to $6 million. Previously, the limit had been $3 million UPB (exclusive of high-cost markets) and $5 million UPB in high-cost markets. The new $6 million limit applies nationwide, inclusive of high-cost markets. The increased loan limit was made effective immediately and impacts the entire book of business. Loans that previously were not designated small loans but have UPBs less than or equal to $6 million will now be considered small loans.
Borrowers that have small loans generally are not required to submit quarterly year-to-date operating statements on such loans; only annual operating statements are required. The increase in the size of the small loan limit bolsters Fannie Mae's ongoing efforts to ensure an adequate supply of affordable housing for working families.
For questions, please contact Fannie Mae's Investor Help Line at 1-800-232-6643 or by email.