| Eligible Loans |
First mortgage loans and portfolios secured
by affordable multifamily housing projects. |
| Eligible Properties |
Affordable rental housing projects with
at least 24 units. Projects may be scattered sites, senior apartments,
affordable assisted living, limited-equity cooperatives, or single-family
rental units. All projects must satisfy Community Reinvestment Act
(CRA) criteria. |
| Loan Amount |
$500,000 to $5,000,000 |
| Term/Amortization |
Terms range from 7 to 30 years. Typically amortization is 30 years. |
| Interest Rate |
Fixed at a spread over the comparable term US Treasury rates. |
Forward Commitment
|
Up to 30 months |
| Rate Lock |
Rate lock available for up to 30 months
with additional spread. Forward rate lock must be secured by a combination
of a secured subordinate note and a cash deposit. |
| Loan-to-Value Ratio (LTV) |
Up to 85% for new LIHTC projects, lower for
other projects. LTV includes all loans requiring debt service payments. For seasoned projects, LTV is gradually up to 80%.
|
| Debt Service Coverage Ratio (DSCR) |
Minimum 1.15-1.20:1.00 for LIHTC projects. 1.25:1.00
and higher for non-LIHTC projects, properties with 40 units or less, and other nontraditional projects. |
| Servicing |
Released to CDT
|
| Subordinate Financing |
Subordinate financing permitted, subject
to CDT approval and execution of acceptable subordination agreement.
|
| Documentation |
Standard Fannie Mae documents, including
Security Instrument, Loan Agreement and Note. |
| Prepayment Terms |
Standard Fannie Mae's prepayment and yield
maintenance terms. |
|
|
