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

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

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, states Todd Tretsky of CRE-Finance LLC.

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.

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

Do you need a conduit loan right now? You can apply now to CRE-Finance and let the experts at CRE- Finance get your loan completed for you from start to finish.

Call today to discuss how the professionals at CRE-Finance LLC can assist you 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. Or visit our website at We are here to help you with your commercial lending needs!