Fannie Mae® DUS Loan Breakdown

Fannie Mae DUS loans are one of the most popular multifamily mortgage products available to prospective real estate investors.

Fannie Mae® DUS Loan Breakdown

Fannie Mae® DUS loans are one of the most popular multifamily mortgage products available to prospective real estate investors. As an agency offering, DUS loans are typically more favorable to borrowers than a loan from a community or commercial bank. Here’s everything you need to know. 

Firstly, DUS stands for Delegated Underwriting and Servicing, and refers to the set of parameters that licensed lenders use to issue loans to multifamily borrowers on behalf of Fannie Mae®, a residential and multifamily lending government-sponsored enterprise (GSE)

DUS loans are designed for acquiring or refinancing large multifamily properties with a minimum of five units. The minimum loan amount is $3 million, though there is no set maximum. Given DUS loans are typically non-recourse, with fixed-rate, variable-rate, and full or part-term interest-only terms available, they are an attractive offering to investors financing a large or high leverage acquisition. 

One significant difference between DUS loans and other agency mortgage products is that they are typically partially-amortized. This may not suit all investors.  A partially-amortized or balloon loan means that the principal is not completely repaid over the term of the loan, and the borrower must make a final, lump sum payment at the end of the term. 

The benefit of a balloon loan is that your monthly payments will be significantly lower than they would be for a fully-amortized loan, especially in the first few years of the schedule. The downside is that you are obligated to make a large, final payment at the end of the term. Balloon loans are most suitable for financing assets that will quickly start to generate revenue, such as a large multifamily property with consistently high occupancy.

Fannie Mae® DUS Loan Terms

The general terms for a Fannie Mae DUS loan in 2022 are listed below. Please note, these terms are subject to change and in some cases can be negotiated. Login to LoanCenter to check the exact terms for a specific property. 

Loan Amount

$3,000,000.00 minimum.  


5, 7, 10, 12, 15, 18, 20, 22, 25, and 30 year fixed-rate terms available. Variable rate and interest-only loan terms are also available, including the option to convert from a variable to fixed-rate. 


 Partially-amortized up to 30 years. Hybrid and fully-amortized loans are also sometimes available. 

Loan-to-Value (LTV) ratio

Up to 80%, or 75% for cash-out refinancing.

Debt-Service-Coverage-Ratio (DSCR)



Non-recourse, albeit with ‘carve-outs’ - contracted stipulations that the borrower not commit fraud or engage in other acts of bad faith. 

Prepayment Fee

1.00% of the remaining loan balance or yield maintenance, whichever is greater. Declining prepayment schedules are also available.

Fannie Mae® DUS Loan Requirements

DUS loans can be used to acquire or refinance certain types of multifamily properties with at least five units. These include co-ops, townhomes, condos, mixed-use, and properties with Section 8 contracts.  

DUS loans cannot be used for properties with a housing assistance program, condos with shared ownership, non-contiguous townhomes or duplexes, healthcare-related properties, or properties that require significant repairs, renovation, or construction. Additionally, the property should have 85% physical occupancy and 80% economic occupancy in the 90 days before the transaction closes. 

The borrower must be a US citizen with a credit score greater than 680, a personal net worth equal to or greater than the loan amount, and available liquidity equal to at least nine monthly payments. There is a required $20,500 application deposit, and an additional $3,000 processing fee.

Again, these requirements can be negotiated on a case-by case basis. Use LoanCenter to check the terms for a specific property and initiate the process of applying for a Fannie Mae® DUS loan in seconds. 

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