Urban Peddler Apartments

Fannie Mae assumption requirements:
• 20% Equity Requirement: Fannie Mae typically requires a 20% cash investment on all assumptions. They would like to see the same on this transaction, though they are open to structuring it in a way that works to your advantage.
• Equity Structure: A portion of this 20% equity can be satisfied by the difference between the agreed-upon purchase price and the current outstanding loan balance at the time of closing.
• Remaining Equity as Reserve: The remaining balance can be placed into a reserve account to be used for property improvements. This reserve would function like a draw escrow — you can access the funds as work is completed. While there are no mandatory improvements required, the expectation is that you'll want to reposition the asset to enhance occupancy and increase rents to market levels. Also, this escrow account does not have to be replenished. It is one time only for improvements or repairs to the property.
• Third Party Management: You may choose from any of the great local area management companies, and we can assist with some recommendations when ready.
This structure not only satisfies Fannie Mae's assumption criteria but also gives you flexibility in how you invest in and upgrade the property.