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News We Follow: Fannie Mae Offering Lower Interest Rates on Green Certified Multifamily Properties

Posted in: news we follow

From an article on US-Eco Logic

Fannie Mae, in its mission to support the U.S. multifamily housing market, is now granting preferred benefits along with a 10 basis point reduction in the interest rate of a multifamily refinance, acquisition, or supplemental mortgage loan for green certified programs. Qualifying green programs include:

  • LEED Homes
  • NGBS (National Green Building Standard)
  • ENERGY STAR for Multifamily
  • Enterprise Green Community
  • HERS (Home Energy Rating System)

This means that a green certified property for sale or refinance makes the property more valuable as the loan can be financed at a lower interest rate. Additional benefits include increased cash flow, safeguard of long-term value, access to a broader investor market, and faster execution and closings. It would also allow pricing breaks and higher loan proceeds on Fannie Mae Green Financing Reward Smart Property investments and upgrades.

All loans financed under this lower interest rate will also be securitized as a Green MBS, growing the total volume of Green Bonds in the market for socially responsible investors to include their portfolios. Fannie Mae is the leading provider of multifamily financing in the U.S., with a portfolio valued at more than $200 billion.

You can learn more here:

Environmental Solutions Group offers nearly all of the Green Building Certifications for multifamily properties that are eligible for this lower interest rate. View our Green Building page to learn more or Contact Us today!

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