True Blue Lending

Commercial · Calculator

Fannie Mae Multifamily

DUS loan sizing across all 5 program tiers with debt yield, cap rate, cash-on-cash, break-even occupancy, and balloon balance at maturity.

Program

Stabilized properties, $3M+ loan. Non-recourse, 5+ units.

Max LTV80%Min DSCR1.25×Min Loan$3.00M

Property

Loan Terms

Income (Annual)

Laundry, parking, pet fees, etc.

Operating Expenses (Annual)

Typically 4–8% of EGI.

Reserves & Closing

Maximum Loan

$2,323,617

Constrained by DSCR · Final DSCR 1.25× · LTV 66.4%

Income Statement

Gross Potential Income$372,000
− Vacancy Loss$18,600
Effective Gross Income$353,400
− Operating Expenses$144,000
Net Operating Income$209,400
− Replacement Reserves$6,000
Net Cash Flow$203,400
Expense Ratio40.7%

Loan Sizing

Max by LTV (80%)$2,800,000
Max by DSCR$2,323,617
Final Loan Amount$2,323,617
Annual Debt Service$162,720
Monthly Debt Service$13,560.00
Balloon at Year 10$1,931,394

Cash to Close

Down Payment$1,176,383
Closing Costs$58,090
Total Cash In$1,234,473

Investment Metrics

Cap Rate (NOI / Price)5.98%
Debt Yield (NCF / Loan)8.75%
Cash-on-Cash Return3.30%
Break-Even Occupancy84.1%
Price per Unit$175,000
Gross Rent Multiplier9.72
Economic Occupancy95.0%

Below Program Minimum

Sized loan ($2,323,617) is below the program minimum of $3,000,000. Try a smaller-loan program (Small Loan, Green Rewards) or a larger property.

Frequently asked

About this calculator.

What is a Fannie Mae DUS loan?

DUS = Delegated Underwriting and Servicing. The most common multifamily financing program in the country. Non-recourse (no personal guarantee), 5+ unit residential properties only, fixed and floating rates, 5–30-year terms, 30-year amortization. Underwritten by approved DUS lenders, sold to Fannie Mae after closing.

What's the difference between Standard DUS and Small Loan?

Standard DUS: $3M+ loan size, more rigorous underwriting, full property-condition assessment. Small Loan: $750K–$9M, streamlined process, no personal tax-return verification required. Same loan structure underneath — just different document load and processing tier.

How does the calculator size the loan?

Two caps run in parallel: (1) LTV cap = purchase price × max LTV for the program (typically 80%, 85% for Green Plus); (2) DSCR cap = NCF / minimum DSCR back-solved into max debt service. The lesser of the two becomes the max loan, and the result above tells you which one is binding.

Why is there a balloon balance?

DUS loans are typically 5–10-year terms with 30-year amortization. At maturity, a large balance remains because the loan didn't fully amortize over the term. You refinance, sell, or pay it off. This is standard for agency multifamily — a feature, not a bug — because the rate stays competitive over a shorter term.

What is "debt yield" and why does it matter?

Debt yield = NCF ÷ loan amount. It's the lender's "what would I yield if I had to take this property back" metric. Most agency lenders want 7%+ today, with 8%+ preferred. Higher debt yield = better deal in lender eyes, often unlocks better pricing.

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Multifamily acquisition or refi

DUS quotes in 48 hours.

Send the rent roll, T-12, and offering memorandum — we\u2019ll come back with sized DUS quotes from multiple lenders. No upfront fees, no app pull required.

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