Mortgage Banking

Making sense of commercial real estate finance.

Fannie Mae Update

Posted by Jordan Crouch on September 9, 2008

Business as usual…That’s what I’m hearing from my Fannie Mae contact. Spreads have lowered a bit, combined with the T-bill yield drop, rates are looking good. The only change that Fannie has made so far is lowering the amount of Interest Only for Tier 2 deals. A Tier 2 deal is a highly leveraged, low DSCR loan where as a Tier 4 deal is low LTV, high DSCR (Tier 3 is in between). Tier 4 loans can still get 10 years of Interest Only, Tier 2 loans now only get two years and Tier 3 loans can get five years). If you must have 10 years of Interest Only, contact me at Jordan(at) ASAP. There is still a few days to get 10 years IO.

Check out this link for explanation of the terms used in this post.


One Response to “Fannie Mae Update”

  1. nice info

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