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)
Minimum DSCR
Subsidized
90%
80%
1.11
Affordable
90%
80%
1.11
Market Rate
87%
80%
1.15
For Loan Amounts $125 Million and above:
Property Type
Maximum LTV
Maximum LTV
(for a Cash Out)
Minimum DSCR
Subsidized 1
87%
80%
1.15
Affordable 2
80%
70%
1.25
Market Rate
75%
70%
1.30
Mortgage Insurance Premium:
- 0.25% due at closing and annually thereafter.
- At least 90% of the units covered by a project-based Section 8 contract for at least 15 years.
- Regulatory Agreement in place with minimum set-aside (e.g., 40% of units at 60% AMI, or 20 % of units at 50% AMI) in effect for at least 15 years
- Refinances may include satisfaction of existing debt, required repairs, an initial deposit to capital needs reserve, due diligence and closing costs, additional funds up to the cash-out LTV and any other eligible costs.
