Agency financing · term sheets checked October 31, 2026
Fannie Mae MAH financing for LIHTC deals
Fannie Mae finances tax credit properties through its Multifamily Affordable Housing (MAH) line. For a 9% deal the main tool is an unfunded forward commitment: a fixed-rate permanent loan locked for 36 months, up to 90% LTV at 1.15x DSCR, funded once the property hits 90% occupancy for 90 days. For 4% bond deals Fannie Mae uses M.TEB, bond credit enhancement and a 4% forward, with LTV and DSCR set by how many units are restricted. Every term below is from Fannie Mae's own term sheets, linked under each table.
| Execution | Deal | Max LTV | Min DSCR | Term | Amortization |
|---|---|---|---|---|---|
| 9% forward | 9% new construction or rehab | 90% | 1.15x | 10-30 yrs | 35 yrs |
| 4% forward | 4% bond deal | 90% / 85% / 80% | 1.15x / 1.20x | 10-30 yrs | 35 yrs |
| M.TEB | 4% bonds, new or refunding | 90% / 85% / 80% | 1.15x / 1.20x | 10-30 yrs | 35 yrs |
| Bond credit enhancement | 4% bonds | same as M.TEB | same as M.TEB | 10-30 yrs | 35 yrs |
| Preservation | Existing restricted, incl. expiring LIHTC | 80% | 1.20x | 5-30 yrs | 35 yrs |
The 90% / 85% / 80% tiers: at least 90% of units affordable, fewer than 90%, and refundings. From Fannie Mae term sheets read October 31, 2026. Fannie Mae's PDFs carry no revision date, so each is dated by its file. Terms change without notice; the lender's commitment governs.
Unfunded Forward Commitment, 9% LIHTC
Permanent loan locked before construction for 9% LIHTC new construction or substantial rehab, including preservation and rural deals. Funded as an MBS at conversion.
| Rate | Fixed |
|---|---|
| Forward lock | 36 months, one delegated 6-month extension |
| Standby fee | 10 bps, paid upfront before rate lock |
| Good faith deposit | 1% of the commitment, refundable at conversion |
| Conversion | Project complete, certificates of occupancy for all units, 90% occupancy for 90 consecutive days, meets underwriting |
| Term / amortization | 10 to 30 years / up to 35 years |
| Max LTV / min DSCR | 90% / 1.15x |
| Delivery tolerance | 90% to 105% of the commitment, within LTV and DSCR limits |
| Other | Second lien delivery assurance note if Fannie Mae or the bond investor requires it |
| Prepayment, recourse, loan size | Not stated on the term sheet |
Source: Unfunded Forward Commitment, 9% LIHTC term sheet (PDF created February 9, 2026).
Unfunded Forward Commitment, 4% LIHTC
Forward commitment for 4% bond deals, delivered through M.TEB (Fannie MBS as bond collateral) or an 80/20 execution.
| Rate | Fixed or variable |
|---|---|
| Forward lock | 36 months, up to two delegated 6-month extensions |
| Standby fee | 15 bps per year, paid upfront before rate lock |
| Good faith deposit | 1%, refundable at conversion |
| Construction period | M.TEB bonds cash-collateralized by a side-by-side construction loan and bond loan; the MBS becomes bond collateral at conversion |
| Conversion | Same as the 9% sheet: completion, certificates of occupancy, 90% occupancy for 90 consecutive days, underwriting |
| Term / amortization | 10 to 30 years / up to 35 years |
| Max LTV | 90% if at least 90% of units meet affordability requirements; 85% if fewer; 80% for refundings |
| Min DSCR | 1.15x; 1.20x for refundings and for deals under the 90% affordability tier |
| Delivery tolerance | Up to 110% of the commitment, within LTV and DSCR limits |
| Costs of issuance | M.TEB can reimburse certain costs of issuance, up to 75 bps |
Fannie's product page for this execution describes some terms differently from the term sheet (a 24- to 36-month lock, up to 54 months on qualifying deals, up to 40-year amortization, a $3 million minimum, non-recourse). The figures above are the term sheet's; confirm with the lender which applies.
Source: Unfunded Forward Commitment, 4% LIHTC term sheet (PDF created February 9, 2026).
M.TEB, fixed rate (MBS as tax-exempt bond collateral)
New fixed-rate bond issues with 4% LIHTC, or refundings. Immediate delivery or standby forward.
| Term / amortization | 10 to 30 years / 35 years |
|---|---|
| Max LTV / min DSCR | Same tiers as the 4% forward: 90%, 85% or 80% (refundings); 1.15x or 1.20x |
| Prepayment | Yield maintenance or declining premium |
| Recourse | Non-recourse, with carve-outs for bad acts |
| Subordinate debt | Hard debt only from public, quasi-public or nonprofit lenders, combined DSCR at least 1.05x; soft debt payments capped at 75% of cash flow |
| Fees | Issuer and trustee fees included in sizing, paid by the borrower |
| Other | Fannie Mae form indenture; a single bondholder may hold the MBS directly, but not before the placed-in-service date on 4% LIHTC deals |
Source: M.TEB, fixed rate (MBS as tax-exempt bond collateral) term sheet (PDF created January 8, 2026).
Tax-Exempt Bond Credit Enhancement
Credit enhancement of tax-exempt bonds for properties with 4% LIHTC rent restrictions: new money, refundings or substitutions. Rated AA+.
| Rate | Fixed |
|---|---|
| Term / amortization | 10 to 30 years (at least 15 for new construction or substantial rehab) / 35 years |
| Max LTV / min DSCR | Same tiers as M.TEB |
| Prepayment | "Flexible" |
| Recourse | Non-recourse; issued under a reimbursement agreement |
Source: Tax-Exempt Bond Credit Enhancement term sheet (PDF created January 8, 2026).
Taxable tail with M.TEB or a credit enhancement instrument
A taxable loan alongside the bonds on 4% LIHTC or recycled-bond immediate fundings (two term sheets, added October 29, 2026).
| Minimum tail | $1,000,000 |
|---|---|
| Good faith deposit | 1% of the combined lock |
| Term / amortization | 10 to 30 years / 35 years, or 40 with approval |
| Rate | Fixed |
| Prepayment | Yield maintenance on both pieces with M.TEB; with a credit enhancement instrument, fee maintenance on that piece |
| Structure | One mortgage, two notes, two MBS, cross-defaulted (M.TEB version) |
Source: Taxable tail with M.TEB or a credit enhancement instrument term sheet (PDF created October 29, 2026); Taxable tail with credit enhancement instrument term sheet (PDF created October 29, 2026).
Affordable Housing Preservation
Stabilized rent-restricted properties, including expiring LIHTC deals, existing bond refinancings, RAD, Section 8 HAP, Section 515 and Sections 202/236.
| Rate | Fixed or variable |
|---|---|
| Term / amortization | 5 to 30 years / 35 years |
| Max LTV / min DSCR | 80% / 1.20x (fixed rate) |
| Restrictions | Recorded: 20% of units at or below 50% AMI, or 40% at or below 60% AMI, or Section 8 on at least 20% |
| Prepayment | Yield maintenance or declining premium |
| Rate lock / recourse | 30 to 180 days / non-recourse |
Source: Affordable Housing Preservation term sheet (PDF created January 8, 2026).
Standard FHA Risk Sharing
Fannie Mae and HUD share the risk; restrictions must last the full loan term. Immediate or forward.
| Loan size | No minimum or maximum; HUD consent above $50 million |
|---|---|
| Term / amortization | 15 to 40 years / full amortization up to 40 years; balloons capped at 30-year amortization |
| Max LTV / min DSCR | Up to 90% as stabilized / 1.15x to 1.20x |
| Rate / lock | Fixed / 30 to 180 days |
| Other | Subsidy layering review where federal law requires it; non-recourse |
Source: Standard FHA Risk Sharing term sheet (PDF created January 8, 2026).
What the term sheets don't say
None of Fannie Mae's LIHTC term sheets set out how restricted rents are underwritten, what happens at Year 15, or the investor and regulatory agreement requirements beyond recording; those come from the DUS Guide and the lender. The 9% forward sheet does not state prepayment, recourse or a loan size range. Pricing is never on a term sheet. Compare with Freddie Mac's TAH loans, and see how agency debt fits the rest of the deal in permanent loans and forward commitments.
Sizing check: the supportable debt calculator takes your DSCR and LTV, and the capital stack builder shows the gap it leaves.
Questions people ask
What is Fannie Mae MAH?
Multifamily Affordable Housing, Fannie Mae's product line for rent-restricted properties. For LIHTC deals it offers unfunded forward commitments for 4% and 9% deals, M.TEB (Fannie MBS as collateral for tax-exempt bonds), tax-exempt bond credit enhancement, taxable tails, FHA Risk Sharing and a preservation loan for existing restricted properties. Loans are made through Fannie Mae's DUS lenders.
How long can a Fannie Mae LIHTC forward commitment run?
The term sheets say 36 months, with one delegated 6-month extension on the 9% forward and up to two on the 4% forward. Fannie's 4% product page also mentions up to 54 months on qualifying transactions, so ask the lender which applies.
What LTV and DSCR does Fannie Mae use on LIHTC loans?
On the 9% forward, 90% LTV and 1.15x DSCR. On 4% bond executions, 90% LTV and 1.15x when at least 90% of units meet affordability requirements, 85% LTV and 1.20x when fewer do, and 80% LTV and 1.20x for refundings. The preservation loan for existing restricted properties is 80% and 1.20x.
Does Fannie Mae finance properties after Year 15?
Its Affordable Housing Preservation term sheet names expiring LIHTC deals among eligible properties, with recorded restrictions of at least 20% of units at 50% of AMI, 40% at 60%, or Section 8 on 20%. A resyndication with new 4% credits would use the bond executions instead.
Pricing a Fannie Mae forward or M.TEB?
Janover Capital compares agency, FHA and bank executions for 4% and 9% deals.