Fannie Mae Scopes Micro Loans

Fannie Mae has rolled out a new small-balance loan program, called Micro Loans, to complement its conventional small-loan program.

The Micro Loans program targets loans of up to $750,000 on properties of five units or more, a market segment dominated by community banks. The company expects the bulk of Micro Loan deals to be for Class B and C buildings housing those earning 100 percent of the area median income and below. Tax credit properties, however, are not eligible for the program.

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