Understanding Fannie Mae Multifamily Rates: Standard DUS Mortgage Explained

Apr 20, 2024

When it comes to financing multifamily properties, Fannie Mae is a name that often comes up. As one of the largest providers of mortgage capital in the United States, Fannie Mae offers a variety of loan programs to help investors and developers finance their multifamily projects. One of the most popular programs is the Fannie Mae DUS (Delegated Underwriting and Servicing) Mortgage. In this blog post, we will take a closer look at the standard DUS mortgage and how it works.

What is the Fannie Mae DUS Mortgage?

The Fannie Mae DUS Mortgage is a loan program designed specifically for the financing of multifamily properties. DUS lenders, which are approved by Fannie Mae, have the authority to underwrite, close, and deliver most loans without Fannie Mae's pre-review. This delegation of underwriting authority allows for a streamlined and efficient loan process.

Key Features of the Standard DUS Mortgage

The standard DUS mortgage offers several key features that make it an attractive option for borrowers:

  • Competitive Interest Rates: Fannie Mae DUS lenders offer competitive interest rates, which can help borrowers save money over the life of the loan.
  • Flexible Loan Terms: The standard DUS mortgage offers a range of loan terms, including fixed-rate and adjustable-rate options, to meet the needs of different borrowers.
  • High Loan-to-Value Ratios: Fannie Mae allows for higher loan-to-value ratios compared to other lenders, which means borrowers can finance a larger portion of the property's value.

These features, combined with Fannie Mae's commitment to supporting affordable housing and sustainable communities, make the standard DUS mortgage an attractive choice for many multifamily property owners and developers.

How Does the Standard DUS Mortgage Work?

The standard DUS mortgage follows a specific process from application to loan delivery:

  1. Application: Borrowers submit an application to a Fannie Mae DUS lender, providing information about the property, their financials, and their experience in the industry.
  2. Underwriting: The lender underwrites the loan, reviewing the borrower's financials, the property's cash flow, and other relevant factors to determine the loan amount, terms, and conditions.
  3. Commitment: If the loan is approved, the lender issues a commitment letter outlining the terms and conditions of the loan.
  4. Closing: The borrower and lender work together to gather the necessary documentation, such as title reports and insurance, and close the loan.
  5. Servicing: After closing, the lender services the loan, collecting payments, managing escrow accounts, and providing ongoing support to the borrower.

Throughout the process, Fannie Mae provides guidance and oversight to ensure compliance with their underwriting and servicing standards.


The Fannie Mae DUS Mortgage is a valuable financing option for multifamily property owners and developers. With competitive interest rates, flexible loan terms, and high loan-to-value ratios, it offers a range of benefits to borrowers. By working with a Fannie Mae DUS lender, borrowers can navigate the loan process more efficiently and access the capital they need to fund their multifamily projects.

fannie mae multifamily