Credit enhancement of apartment properties financed with tax-exempt bonds where the affordable unit set aside is at least 20% at 50% or 40% at 60% of area median income (adjusted for family size). Typically these properties will have 4% Low Income Housing Tax Credits.
Can be used in combination with Affordable Housing Forward Commitment Program.
A minimum term of 10 years with a maximum term of 30 years.
PREFERRED LOAN SIZE:
$10 million and larger.
Amount equal to the lesser of:
90% of appraised value (85% of favorable financing value); or
1.15 debt service coverage.
Rate fixed to maturity of the bonds, or an interest rate reset and remarketing of the bonds as early as 15 years from the closing date.
None, except for standard exceptions to non-recourse which are the responsibility of the Key Principal(s).
Assumable, subject to Walker & Dunlop approval and a 1% transfer fee.
Lockout and prepayment provisions typically correspond to the tax-exempt bond requirements and the present value of any unpaid Fannie Mae credit enhancement fees plus any unpaid lender servicing fees during the first ten years.
Subordinate financing may be allowed under certain circumstances.
125% to 150% of estimated cost of required repairs, if any, as determined by physical inspection.
Monthly escrows for real estate taxes, property insurance and replacement reserves are required.
Based on estimated underwriting costs for appraisal, architectural / engineering report, market study, environmental assessment and other loan processing costs.
Standard transaction costs, including legal fees, title insurance and survey.
PRELIMINARY SUBMISSION PACKAGE:
Include the following in your request for a loan quote:
- Property description and location map.
- Representative color photographs.
- Current rent roll and trailing 12-month operating statement with monthly detail.
- Operating history – prior 3 years, if available.
- Current year operating budget.
- Existing debt and cost basis.
- Sponsor resume.
This is a summary of general program terms, which are subject to change. This is not a commitment to lend.