Fixed Rate Multifamily Program
| Description | Non-recourse, assumable fixed rate financing for the acquisition or refinance of stabilized multifamily rental or cooperative properties |
|---|---|
| Loan Amount | Minimum $3,000,000 |
| Loan Terms | 5, 7, 10 or 15 year balloon; 20, 25, or 30 year fully amortizing |
| Amortization | 25 or 30 years, based on property condition; interest-only financing is available |
| Loan to Value Maximum | Maximum 80% of appraised value, or if property has been purchased within the past 12 months, 80% of lower of: a) purchase price, plus value added renovation, plus 3% closing costs, or b) appraisal |
| Debt Service Coverage | 1.25x minimum |
| Borrower | Domestic single asset borrowing entity is required |
| Interest Rate | Risk-based pricing, varies with LTV and DSC ratios |
| Prepayment | Yield Maintenance with no lockout, Defeasance, or fixed, step-down prepayment schedules |
| Third Party Reports | MAI appraisal, Physical Needs Assessment, and Environmental Phase I Assessment are required, plus 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 65% of value with no deferred maintenance, funding of repair and replacement reserve can be waived, at lender’s discretion |
| Application Fee | $15,000; covers 3rd party reports and processing/underwriting costs |
| Origination Fee | Fannie Mae requires minimum origination fee equal to 1% of loan amount for loans of $9 million or less; Minimum fee for loans over $9 million through $20 million is the greater of 0.8 percent or $90,000; Fees decrease further as 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 1% 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
