Short answer
Fannie Near-Stabilization is an agency execution for multifamily properties at 75 to 90 percent occupancy that have not yet hit standard stabilized DSCR . It uses bridge-style underwriting with elevated reserves and converts to standard DUS pricing once the property reaches stabilization milestones.
When does it fit?
On lease-up multifamily where construction is complete, base rents are in line with market, and the property is on track to stabilization within 6 to 12 months. Sponsors avoid the cost of a separate bridge loan and the second-close cost of refinancing into permanent debt.
Sources
- Delegated Underwriting and Servicing (DUS) program disclosures · Fannie Mae · current