FANNIE MAE / FREDDIE MAC (FIXED & FLOATING RATE)
We stay actively involved throughout the entire process and know the process well, having closed loans under both programs for Fannie Mae and Freddie Mac. The property types we cover include conventional and non-conventional Multifamily properties, Seniors Housing, Affordable, Student and Manufactured Housing. We offer competitive fixed and adjustable rate loans under the various Freddie Mac and Fannie DUS loan programs. The loans are available for refinance, purchase or construction take-out.
|Type||Fannie Mae / Freddie Mac|
|Loan Term||5, 7 and 10 year|
|Asset Types||Multi-family, Student Housing, MHP & Age Restricted/ Senior Housing|
|Recourse||Non - Recourse to Key Principals except for customary bad boy carve outs|
|Loan to Value||Up to 80% on acqusition and refinance|
|DSCR Requirement||1.20x & 1.25x|
|Amortization||Typically 30 yr (Partial Interest Only Available)|
|Interest Rate||Competitive treasury based pricing|
|TI/LC, CapEx, Other Reserves||Ongoing TI/LC and CapEx reserves collected|
|Prepayment||Defeasance or yield maintenance|
FREDDIE MAC (OTHER PRODUCTS)
Bond Credit Enhancement with 4% LIHTC
Financing for affordable multifamily properties funded by the sale of fixed or variable rate tax exempt bonds and that have received Low-Income Housing Tax Credits (LIHTC). Bond Credit Enhancement can be structured for new construction, substantial rehabilitation, moderate rehabilitation and both acquisition and refinance of stabilized affordable multifamily assets.
Offers short term, cost effective non-recourse financing for moderate property upgrades ranging between $5,000 to $15,000, with interest only and uncapped floating-rate loan options.
Direct Purchase of Tax Exempt Loans
Cost effective alternative to tax exempt bond credit enhancements with 4% Low-Income Housing Tax Credits. The product geared towards financing for the acquisition or refinance of affordable multifamily properties with 4% LIHTC with at least 7 years remaining in the tax credit benefit period. The product offers fixed rate financing up to 35 years amortization with a balloon up to 18 years.
Tax Exempt Bond Securitization (TEBS)
Offers the efficiencies of Freddie Mac’s securitization (minimum pool size of $100MM) to tax exempt bond holders in the multifamily affordable housing market. The TEBS structure is a proprietary execution offered by Freddie Mac through which a Sponsor transfers privately placed tax-exempt multifamily housing revenue bonds (and possibly related taxable bonds or loans) to Freddie Mac in exchange for:
- Freddie Mac senior Class A-M Certificates that are sold to investors and;
- Subordinate Class B-M Certificates that are retained by the Sponsor.
FANNIE MAE (OTHER PRODUCTS)
Tax-Exempt Bond Credit Enhancement
Fannie Mae provides credit enhancement for tax-exempt bonds issued to finance the acquisition, new construction, refinancing or moderate to substantial rehabilitation of multifamily properties. The product offers fixed rate non-recourse financing up to a 30 year term with 30 year amortization (minimum 15 years for new construction and substantial rehabilitation).
Fannie Mae offers a 7 year variable rate financing option with an embedded cap, and fixed rate conversion option for Properties with 5 to 50 units, and Multifamily Affordable Properties of any size.