Questions about Fannie Mae Multifamily (Apartment) Loans

[Josh Prince]

I have been looking at and buying apartment buildings in the $500k-$2.5M range for the last couple of years. I have always either purchased with a loan from a bank or all cash and then refinanced with a bank that held the loan as a portfolio loan.

A few people have told me that I may be able to get better terms (for example, non-recourse) if I get a Fannie Mae loan, however it will be a hassle. I did a little google searching and I found this overview on the Fannie Mae site:

https://www.fanniemae.com/content/fact_sheet/multifamilyoverview.pdf

However the article is short on practical information. I hope someone here has some experience and can help me with the following questions:

1. What is the general range of building value that makes sense for this kind of loan? How small of a building will qualify?

2. What kind of lender can write this loan? I have heard only small lenders. Is that true?

3. What is different about the underwriting that makes it a hassle?

4. What makes the terms better?

5. If you have had experience, do you find hte Fannie Mae loan to be a better option?

Thank you very much in advance!