Loan Term:
Not to exceed term of existing loan; up to remaining term plus 12 years
Interest Rate:
Fixed rate, fully amortizing
Non-recourse:
Non-recourse
Assumable:
Fully assumable
Prepayment:
10% year one, then declining 1% per year; and customizable
Cash Out:
Not permissible
Borrower:
A single asset SPE
Escrows:
Escrows required for taxes, insurance, MIP and capital needs replacement reserves (minimum $250 per unit/annually)
Third Party Reports:
Capital Needs Assessment only if prior report is more than 2 years old
DSCR/LTV Requirements:
Property Type
Minimum DSCR
Subsidized
1.05
Affordable
1.11
Market Rate
1.11
Mortgage Insurance Premium:
- Market Rate Properties: 0.5%
- Affordable Properties: 0.35%
- Broadly Affordable or Green: 0.25%
- 90% or more of the units are covered by a project based Section 8 contract for at least 15 years.
- 15 or more year regulatory agreement after Final Endorsement with a minimum AMI set aside
