Fannie Mae and Freddie Mac Will Not Lend on Apartments with Tuck-Under Parking Says CRE-Finance LLC

CRE Finance offers insights on Fannie Mae and Freddie Mac regarding apartment loans for units with tuck-under parking.

The conduits that make CMBS loans, of course their most preferred product, is multifamily loans. The problem is that the agencies - Fannie Mae and Freddie Mac - have better rates and terms for apartment loans than the conduits. The agencies will also go higher in terms of loan-to-value.

"Do you know that CMBS loans offer more flexibility than the Agencies offer?" said Todd Tretsky of CRE Finance.

Do you know that CMBS loans offer more flexibility than the Agencies offer?

Todd Tretsky, CRE Finance

According to Tretsky, "The conduits are therefore looking for scratch and dent apartment loans that don't quite qualify for the agencies. One reason an apartment building might not qualify is that it cannot satisfy the 90/90 Rule." Fannie and Freddie will not finance an apartment building that has not been at least 90% occupied for ninety days.

Another fatal flaw for Fannie and Freddie is tuck-under parking. "Tuck-under parking is basically carports underneath the building. The concern is that the building could collapse in an earthquake," said Tretsky.

Although the agencies won't finance properties with tuck-under parking, CMBS lenders will gladly make these loans. If the apartment building is also struggling to maintain 90% occupancy, then it would be wise to consider a conduit loan.

"We can help you with your conduit loan and provide you with answers to ensure you qualify. Please apply now to CRE-Finance and let our experts at CRE- Finance get your loan completed for you from start to finish," said Tretsky.

While difficult to obtain a Fannie and Freddie mortgage when the property contains tuck under parking, it is not impossible to obtain financing.  Call today to discuss how the professionals at CRE-Finance LLC can assist with all of your commercial lending needs. 

Rich Tretsky can be reached at 212-257-7307 or Todd Tretsky can be reached at 212-257-7305.  Visit the website at