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CORPORATE HEADQUARTERS | 10 West Broad Street, 8th Floor | Columbus, OH 43215 | 1.800.837.5100

Fannie Mae DUS® Green Financing
benefits 

  • Pricing incentive of 22-30 bps interest rate reduction from standard Fannie Mae DUS® rates
  • Higher LTV and lower DSCR for Green Preservation Plus loans
  • Increased cash flow with reduced energy expenses, lower water costs, and new revenue from electricity-generating solar systems
  • Access to broader MBS investor market interested in Fannie Mae’s environmentally focused Green MBS
  • Up to 5% higher loan proceeds to finance energy- and water-saving property improvements with Green Rewards and Green Preservation Plus

REQUIREMENTS

There are three types of Green Financing Products:

Green Building Certification
  • Conventional and Affordable Multifamily Properties are eligible
  • Property must possess a current Fannie Mae recognized Green Building Certification prior to rate lock
  • ENERGY STAR Reporting required
Green Rewards
  • Conventional and Affordable Multifamily Properties are eligible
  • Portion of proceeds must finance green property improvements
  • Up to 75% of projected energy and water cost savings may be included in NOI calculation, including tenant savings up to 25% of the total projected energy and water savings
  • Fixed or adjustable rate
  • Improvements must be made within 12 months of closing Replacement reserves, taxes and insurance escrows are required
  • ENERGY STAR Reporting required
Green Preservation Plus
  • Affordable Multifamily Properties are eligible
    Energy- and water-saving improvements must equal at least 5% of the loan amount, 5% higher than applicable LTV limitation for the loan
  • 5 bps lower than the applicable DSCR requirement for the loan; Fixed rate only
  • Improvements must be made within 12 months of closing
  • Replacement reserves, taxes and insurance escrows are required
  • ENERGY STAR Reporting required

RED Capital Group is a wholly owned subsidiary of ORIX USA Corp.