Hunt Real Estate Capital, a leader in financing commercial real estate throughout the United States, announced today it was selected to offer its clients Fannie Mae’s newly enhanced hybrid ARM for small loans.

The Hybrid ARM is a fully amortizing loan with options for a fixed rate in the first five-, seven-, or ten-years, automatically converting to an adjustable-rate mortgage for the remainder of the loan term with no balloon payment due at maturity.

“This exciting newly enhanced product offers commercial small loan borrowers the full flexibility and certainty of execution enjoyed under Fannie Mae’s DUS® model,” explained Rick Warren, Senior Managing Director at Hunt Real Estate Capital.  “The program offers small loan borrowers flexible, long-term financing with attractive prepayment options and competitive pricing.”

Fannie Mae Hybrid ARM Loan Features

Fannie Mae’s newly enhanced Hybrid ARM is a flexible financing tool that offers significant proceeds and a variety of loan term options, providing liquidity to support the small loans market. The product is for conventional small mortgage loans and manufactured housing communities and features:

  • Loan amount up to $3 million or $5 million, depending on market and number of units
  • Five-, seven- and ten-year fixed-rate term followed by 25-, 23-, or 20-year adjustable-rate term
  • Fully amortizing 30-year loan
  • Index during adjustable-rate term: 6-month LIBOR
  • Margin during adjustable-rate term: 0.80% plus the Guaranty Fee, plus the Servicing Fee
  • Maximum interest rate during the adjustable-rate term

“Hunt Real Estate Capital is a well-known national leader in small balance lending.  The firm has offered Fannie Mae small loans for several years,” added Warren. “This newly enhanced Fannie Mae loan program is a powerful new financing tool enabling us to continue to meet borrowers ever-evolving financing needs.”