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
Minimum $1 Million
10 to 30 Years
Up to 30 Years
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
Minimum 1.20x
Domestic single asset borrowing entity is required
Risk-based “Tier” pricing, varying with LTV and DSC ratios
Yield Maintenance
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
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
$2,500 non refundable Application Fee to cover internal underwriting; $12,500 Due Diligence Fee to cover third party reporting
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
$8,000 TO $12,000 varying with characteristics of the deal
45-60 days from application to commitment; dependent on 3rd party report timing and borrower’s submission of due diligence
Typically, lock occurs after commitment is issued; Early Rate Lock option is available, allowing rate lock within 3-4 weeks of application
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
A comprehensive data base of over 90,000 multi-family units throughout Louisiana and the Mississippi Gulf Coast area. Learn More