Taking ownership of a multifamily property can be an exciting business project. During the financing portion of the process, it is important to have an advocate you can trust to guide you through each step along the way. The dedicated team at LSG Lending Advisors has many years of experience in all areas of multifamily property lending. We know that every business has unique challenges and that is why we take the time to develop custom made solutions for our clients.
You can count on the dedicated professionals at LSG Lending Advisors to help you adhere to all FHA/HUD MAP lending guidelines. We can also access some of the best FHA/HUD MAP approved lenders that the industry has to offer. Contact us today to learn more about how we can use our many years of knowledge and experience to benefit your multifamily property project.
The Fannie Mae Unfunded Forward Commitment 9% Low-Income Housing Tax Credit (LIHTC) Properties program is for properties with a 9% LIHTC allocation that need substantial rehabilitation or new construction, with fixed rate, permanent financing for taxable transactions. The minimum loan amount is $3 million, and allows a loan term of up to 30 years with a 35-year amortization. The maximum LTV limit is up to 90%.
Term Sheet for Fannie Mae Unfunded Forward Commitment 9% LIHTC Properties
| Eligibility/Benefits |
Substantial rehabilitation or new construction transaction with 9% LIHTC allocation.
- Fixed-rate, permanent financing for taxable transactions.
- Allows for rate lock and establishes other mortgage provisions for up to 30 months in advance of construction completion and conversion to a permanent mortgage loan.
- Eliminates negative arbitrage during construction.
|
| Forward Rate Lock Period |
24 or 30-month commitments. One six-month extension available. |
| Loan Amount |
Minimum $3.0 million. |
| Loan to Value |
Up to 90% LTV. |
| Loan Term |
Up to 30 years. |
| Amortization |
Up to 35 years. |
| Debt Service Coverage Ratio |
1.15x minimum. |
| Interest Rate |
Fixed rate set at the time of rate lock of the Forward Commitment. |
| Prepayment |
Yield Maintenance with no prepayment fee during the three months prior to maturity. |
| Guaranty |
Non-recourse with standard carve-outs. |
| Subordinate Financing |
Available subject to Fannie Mae requirements. |
| Conversion Requirements |
Project completion with certificates of occupancy for all units
• 90% Occupancy for 90 days
• Permanent loan must meet Fannie Mae’s underwriting requirements |
| Reserves |
Deposit required for replacement reserves, taxes, and insurance. |
| Processing Fee |
- Typically $20,000 - includes cost of Third-Party Reports (Appraisal, Market Analysis, Environmental, and Engineering Report) and lender due diligence.
- Borrower is responsible for legal fees and standard closing costs.
|
| Commitment Fees |
Competitive and negotiable. |
| Good Faith Deposit |
1% of loan amount - refunded following conversion. |
| Delivery Tolerance |
+/- 10% |
| Forward Standby Fee |
One-time up-front fee of 0.25% |