Fannie Mae Green Rewards
Fannie Mae Green Rewards is a multifamily green loan program. This popular mortgage gives incentives to multifamily borrowers who make apartment buildings and cooperatives more energy efficient. Investors using Fannie Mae’s Green Loan financing platform qualify for lower interest rates and higher proceeds.
- Preferred Pricing – Lower Rates
- Up to 5% More In Proceeds
- Up to 80% LTV
- Min. Loan Amount $750,000
- Fixed & Adjustable Rate Options
- Non Recourse Available
Green Rewards is a great option for investors looking to re-position older apartment assets. Using a value-add strategy, investors can renovate and retrofit older properties and reduce water and energy use. Because operating expenses are reduced, NOI increases along with overall property value.
- Portion of proceeds must finance energy-saving upgrades
- Energy and water use must be reduced by at least 30%
- Improvements must be completed within 12 months
- The cost of the Energy Audit is reimbursed by Fannie Mae
Lower Operating Costs and Higher Cash Flow
Property Condition Assessment (PCA)
Property Condition Assessment, or ``PCA``, is required by Fannie Mae on all Green Financing Loans. The PCA is a comprehensive evaluation of the multi-family property the Green Rewards loan is intended for. In addition to detailing the physical condition of the property, it also indicates any anticipated capital expenditures that may be required over a specific time frame. The Property Condition Assessment is completed by a Third-Party Consultant that is approved and designated by Fannie Mae. Our professionals will help coordinate this important phase of the loan process.
High-Performance Building Assessment Report (HPB)
High Performance Building Assessment Report, or ``HPB``, is an energy and water audit that is part of the Property Condition Assessment for every Green Rewards loan. The HPB report will detail all energy and water efficiency measures, and quantify how these improvements will improve operating performance and the overall quality of the property. This report makes it easier for the borrower, consultant, and lender to gather, analyze, and report on energy and water usage in savings. The cost of the High-Performance Building Report is paid by Fannie Mae.