Affordable Loan Structures


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


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


Domestic single asset borrowing entity is required

Interest Rate

Risk-based “Tier” pricing, varying with LTV and DSC ratios


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


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


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


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

Multifamily Financing Overview

Multifamily Financing OverviewProperty Types Financed
Typical Loan Structure

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