Loan Term:
35 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:
Cash out is permissible
Commercial Space:
No commercial space greater than 25% of net rentable area and 20% of effective gross income of the property
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:
Appraisal, Environmental Report, and Capital Needs Assessment
DSCR/LTV Requirements:
For Loan Amounts up to $125 Million:
Property Type
Maximum LTV
Maximum LTV
(for a Cash Out)
(for a Cash Out)
Minimum DSCR
Subsidized
90%
80%
1.1
Affordable
87%
80%
1.15
Market Rate
85%
80%
1.176
For Loan Amounts $125 Million and above:
Property Type
Maximum LTV
Maximum LTV
(for a Cash Out)
(for a Cash Out)
Minimum DSCR
Subsidized 1
80%
70%
1.25
Affordable 2
80%
70%
1.25
Market Rate
75%
70%
1.3
Mortgage Insurance Premium:
- Standard MIP is 1% of the loan amount due to HUD at closing; then 0.60% annual thereafter.
- Affordable Properties: 0.35% at closing; then 0.35% annually thereafter.
- Broadly Affordable or Green: 0.25% at Closing; 0.25% annually thereafter.
- 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.
