Affordable Loan Structures
| Description | Non-recourse, fixed rate financing for the acquisition or refinance of stabilized multifamily rental or cooperative properties with expiring use rent and income restrictions, affordable preservation and/or Section 8 HAP Contracts |
|---|---|
| Loan Amount | Minimum $1 Million |
| Loan Terms | 10 to 30 Years |
| Amortization | Up to 30 Years |
| Loan to Value Maximum | Maximum 80% of appraised value, or, if property has been purchased within the past 12 months, 80% of lower of appraisal or purchase price (and up to 3% of closing costs) plus value added renovation |
| Debt Service Coverage | Minimum 1.20x |
| Borrower | Domestic single asset borrowing entity is required |
| Interest Rate | Risk-based “Tier” pricing, varying with LTV and DSC ratios |
| Prepayment | Yield Maintenance |
| Third Party Reports | MAI appraisal, Physical Needs Assessment, and Environmental Phase I reports are required; Seismic Report may be required for properties in Seismic Zone 3 and 4 |
| Reserves | Tax and insurance escrows are required; Funded Repair and Replacement escrow is required, based on engineer’s Physical Needs Assessment; For loans of less than 75% of value with no deferred maintenance, funding of repair and replacement reserve can be waived, at lender’s discretion |
| Application & Due Diligence Fees | $2,500 non refundable Application Fee to cover internal underwriting; $12,500 Due Diligence Fee to cover third party reporting |
| Origination Fee | Fannie Mae requires minimum origination fee equal to 1% of loan amount for loans of $9 million or less; Minimum fee decrease with increasing loan size; Origination fee can be charged “outside” of the interest rate as a separate fee, or it can be built into the rate |
| Legal Fees | $8,000 TO $12,000 varying with characteristics of the deal |
| Timing | 45-60 days from application to commitment; dependent on 3rd party report timing and borrower’s submission of due diligence |
| Rate Lock | Typically, lock occurs after commitment is issued; Early Rate Lock option is available, allowing rate lock within 3-4 weeks of application |
| Assumability | Loan is assumable, subject to lender approval of proposed replacement borrower, Fees include one percent assumption fee, part of which is paid to Fannie Mae, and a $3,000 processing fee to cover lender’s underwriting expenses |
Finance Reports
First Madderra & Cazalot report scheduled for release in early 2011. Please check back.
Multi-Family Reports
A comprehensive data base of over 90,000 multi-family units throughout Louisiana and the Mississippi Gulf Coast area. Learn More
