Fannie Mae™ Immediate Funding

Refinance, Acquisition, or Moderate Rehabilitation for affordable properties which have tenant income restrictions (see below)

$1,000,000

5, 7, 10, or 15 years

30 year amortization (35 year amortization may be available with waiver)

Fixed for the term of the loan

1%, payable at loan closing

80% (95% including any “must pay” subordinate debt)

1.20 (1.05, including any “must pay” subordinate debt)

Nonrecourse, with standard carve-outs required for “bad acts” such as fraud, environmental, and bankruptcy with designated Key Principal. Individuals required as Key Principal; nonprofits allowed as Key Principal with waiver.

Replacement reserve (minimum $250 per unit per year), tax and insurance escrows are typically required.

Appraisal, Phase I Environmental Assessment, and Property Condition Assessment are required. Earthquake assessment may be required.

Rate lock available up to two weeks before loan closing. Cash deposit required (2% above $5 million; 1% at or below $5 million) and returned at closing.

20% or more units rented to families earning at or below 50% of Area Median Income (AMI); or

40% or more units rented to families earning at or below 60% AMI; or

Project Based Housing Assistance Payments contract covering 20% or more units

Yield maintenance required until the last six months of the loan term

Financing available for rehabilitation work up to $10,000 per unit or 25% of the loan amount, whichever is lower. Waiver available on limits.

Contract rents underwritten to no greater than market rents. If HAP contract term does not exceed loan term, a restabilization reserve may be required. Rents for portable tenant vouchers underwritten to in-place LIHTC rents.

Permitted, subject to Lender approval and execution of subordination agreement. Strong preference for no “must pay” subordinate debt.

Value is based on rent restricted value. For transactions with HAP contracts, value may include HAP rents (as adjusted if over market).

Three years (plus year to date) of property operating statements, regulatory agreement(s), most recent audit (if available), and rent roll. Key Principal property portfolio and liquidity information.

Required at Letter of Interest acceptance for third party reports and other costs.

Required at Letter of Interest acceptance for third party reports and other costs.

Borrower pays lender legal cost.